Minister: I urge countries not to make a fuss every time Trump says something

No country announcing plans to raise defense spending to 5 percent of GDP following Donald Trump taking office this week has an actual plan to implement it, and such statements should be avoided, Minister of Finance Jürgen Ligi (Reform) said in an interview with ERR on Friday.
In recent days, Estonia, Lithuania and several other countries on the eastern flank proposed to raise their defense spending to 5 percent of GDP. This is reportedly Trump's request to NATO members and the Baltics have suggested the EU should make funding available.
Poland's defense spending is expected to reach 4.7 percent of GDP this year, but the increase was planned before Trump's inauguration.
Ligi said, so far, the statements announced this week are just words with no concrete plans behind them.
"No one really has a plan to meet the 5 percent target. I urge all countries not to make a fuss when Trump says something we cannot realistically do. Lithuania, for example, which has been held up as an example to us, has not managed to come up with a 5–6 per cent figure, and what I read from their president, well, it is utopian. As if there are some currency reserves somewhere that are being used, or when he talks about the central bank reserves – no, the reserves still have a purpose and the budget has a solid wall in front of it, no one can go to the Bank of Estonia and take money from there," Ligi said.
"This kind of muddled talk needs to be stopped. At the same time, Estonia is taking the U.S.' withdrawal into itself very seriously. It is no surprise to us that we need to increase defense spending," he added.
Ligi, who already said last autumn that raising defense spending to 5 percent of GDP was unrealistic, reiterated that it is not "tangible."
"Gradually moving toward it is one thing, but the solution is not to change budgetary rules and then consider ourselves free from them. Budget rules actually have a purpose. Budgetary rules have kept Europe out of a debt crisis, with all countries making efforts to avoid overspending. Budgetary discipline remains essential," the politician noted.
When asked about a potential defense spending exception, Ligi said the current rules already allow for it.
"But what we can do specifically or what agreements are reached is another matter entirely. It is no secret that a lot depends on Germany's elections [in February]. Without Germany's stance, there is no point discussing exceptions. Nobody will amend the [EU] treaty, I am sure of that," Ligi said.
The minister said loosening budgetary rules would pose risks to nations' finances.
"Financial stability is also a part of security, so we must avoid the opposite extreme. Still, setting rhetorical targets is necessary. This cannot be done quickly. For example, what does 1 percent of GDP mean? Roughly speaking, it means raising income tax or VAT rates by 3–4 percent. We have said we will not do that, and I believe the government will stick to that," he added.
"The Russian war machine is not sustainable enough for us to panic"
When asked how much Estonia could increase defense spending year by year, Ligi said it depends on political agreements.
"All parties would need to act in unison, but right now, most headlines I see are about someone saying the plan is correct but poorly executed," he said.
At the Reform Party board meeting on Friday, Prime Minister Kristen Michal explained how Estonia could proceed with increasing defense spending. Ligi said it was a realistic proposal.
"The target must be set, but it cannot be achieved abruptly. After Germany's elections, a consensus must be reached in Europe on the extent to which war-related exceptions can be applied," Ligi said.
The finance minister did not want to speculate on when Estonia's defense spending might reach 5 percent of GDP.
"I evaluate the process and the readiness of political parties realistically. I have seen the reactions of coalition partners, and they need to be addressed," he said.
Ligi stressed that Estonia is not alone in ensuring security and that allies must understand this is a shared European interest.
"Europe is moving forward with its defense spending. The Russian war machine is not so sustainable that we need to panic. From my position of being well-informed, I see it this way: we are not at war. We are next to a very nasty neighbor who is weak but always dangerous," the minister said.
"Russia is big enough to be a constant threat, but we must not become a threat to ourselves by panicking. Plans must be sustainable. The greatest effect will come from having allies in Europe stand with us. Then there will be less talk of one-on-one confrontations with Russia. That confrontation is not starting," Ligi concluded.
Akkermann: 5 percent of GDP target by 2026 unrealistic

Annely Akkermann (Reform), chairwoman of the Riigikogu's Finance Committee, told ERR it is not realistic to expect to spend 5 percent of GDP on defense by 2026.
Estonia currently allocates around 3.4 percent of its GDP on defense.
Akkermann said an additional 1.5 percent or 2 percent rise would cost approximately €500–€600 million. "It's a very serious task," she said.
Asked if the process of finding the money had started she said discussions will "undoubtedly" start soon in the Ministry of Finance and within the government.
"Whether defense spending can be raised to 5 percent next year and whether the Defense Forces can procure such a large amount by 2026 are open questions. The 5 percent figure is more symbolic. It's essential to assess in which year we can meet specific needs through procurement," the chairman said.
"Additionally, NATO's defense plans, updated some time ago, also play into longer-term considerations, especially when the additional budget requirement increased from 2 percent to 3 percent of GDP. Once a goal is set and movement begins toward it, every aspect is carefully considered and reevaluated multiple times."
Asked if she knew where the money could come from, the MP said: "There are certainly some possible ideas on how to start looking for it, but there is nothing concrete to say right now."
She does not think the target could be reached next year.
"Purely from a practical standpoint, reaching 5 percent by 2026 is not yet realistic, as procurement procedures are also involved. Moreover, the defense industry on our side of the axis of evil may not be sufficiently capable. The mere fact that countries are increasing their defense spending from 2 percent to 3 percent adds orders and extends procurement timelines. I am not familiar with how procurement processes might unfold, but it is quite unlikely that we will reach 5 percent by 2026. However, if the goal is set, it will be achieved eventually," Akkermann said.
This article was updated to add comments from Annely Akkermann.
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Editor: Marko Tooming, Helen Wright