Additional funding to secure EDF with multiple new capabilities

The government's decision on Thursday to raise defense spending to 5.4 percent of GDP for the next four years will mean a number of additional military capabilities and more ammunition for the EDF, the defense minister of defense and EDF chief said Friday.
Commander of the Estonian Defense Forces (EDF), Maj. Gen. Andrus Merilo said that the need to strengthen Estonia's defense stems from a deteriorating security environment caused by Russian aggression and the fact that, alongside its war in Ukraine, Russia is also building up military capabilities for operations elsewhere.
"This also creates a threat to us for which we must be prepared," Merilo emphasized. Estonia needs to build up an independent defense capability, he added, stressing that it must be credible, as this helps deter aggression against the country.
According to Merilo, Estonia must not only catch up to the enemy's capability development but even outpace it — at least for a time — and the additional funding approved by the government decision will be used for precisely that purpose.
Land Forces
Within the Estonian Defense Forces, the main component — the Land Forces — will see enhanced capabilities aimed at preventing enemy forces from entering Estonian territory. At the same time, a second component is being developed: the capability to bring the effects of war directly onto enemy territory. This means acquiring deep-strike capabilities and, for that purpose, establishing a deep-intelligence capability, Gen. Merilo said. A deep intelligence battalion, known as an ISTAR unit (Intelligence, Surveillance, Target Acquisition and Reconnaissance), will be created for this purpose.
To support this effort, mobile HIMARS rocket systems purchased from the United States, along with additional ammunition for them, are set to arrive in Estonia shortly, he noted.
Significant investment will also go toward drone capabilities — both for using Estonia's own drones to affect the enemy and for countering enemy drones.
Additionally, the Defense Forces will establish a separate engineer battalion tasked with setting up physical obstacles on the terrain to impede enemy movement.
Air Force
Air defense falls under the Air Force's purview and is designed to be layered — meaning it must include short-, medium- and long-range air defense systems.
Merilo said that Estonia is expected to soon receive the medium-range air defense batteries it has already ordered, but now additional medium-range systems will also be acquired.
Thanks to the new funding decisions, Estonia will also begin developing a long-range air defense capability to protect against ballistic missiles.
Navy
Speaking about the Navy, Merilo emphasized the need to modernize the fleet — not only due to military requirements, but also to ensure the protection of maritime infrastructure.
At the same time, the EDF is working to keep their minehunters operational, though this too will require additional investment, the general acknowledged.
In addition, the Defense Forces plans to acquire new force protection patrol boats to restore a capability that was lost when Estonia transferred its own vessels to Ukraine.
Personnel
Without personnel, new capabilities are meaningless, the commander of the Estonian Defense Forces emphasized. He pointed out that many service members are currently leaving the military because the workload is too intense. The Defense Forces is working to increase the number of active personnel, as they are currently short about 500 people, he noted.
To address this, plans are in place to increase the salary budget, allowing the Defense Forces to recruit more personnel and staff new weapons systems.
Merilo also stressed that the military wants to make greater use of reservists. To support this, there are plans to raise the allowances paid to reservists, as current rates no longer reflect the cost of living.
At the same time, increasing the allowances for conscripts is also on the agenda, as these have likewise fallen behind due to inflation.
Additionally, the EDF is planning to introduce a seniority pay system to encourage experienced personnel to remain in service as long as possible. Separate compensation for seniority would be part of a broader incentive package, the general said.
Ammunition
Merilo also announced that the Defense Forces has now committed €5 billion toward ammunition purchases intended for various weapons systems.
The pace of procurement has been accelerated to complete a seven-year purchasing plan within five years, but a key factor will be the manufacturers' production capacity, the general emphasized.
Infrastructure
When it comes to infrastructure investments, Merilo highlighted the specific storage requirements for ammunition, noting that it often needs specialized conditions.
Regarding the planned Baltic defense zone stretching from Estonia to Poland, Merilo said that it is being developed in cooperation between the Baltic states and Poland and that components of the zone will begin to appear on the ground this year.
Speaking about the construction of a Defense Forces base in Narva, Merilo explained that the aim is to fill a gap — currently, a city of that size has no Estonian military presence. The goal is to reestablish that presence, and the size of the unit to be stationed in Narva will be determined in the near future.
Infrastructure upgrades also relate to improving conditions for hosting allied forces, so they can come to Estonia, continue their training here and have everything they need, the general said.
This also includes developing training areas so Estonian service members can conduct even more effective exercises.
The development of Camp Reedo — currently hosting U.S. troops—will definitely continue as well, in order to accommodate a greater number of allied forces.
Innovation command
Defense Minister Hanno Pevkur (Reform) added that he and the commander of the Defense Forces are in full agreement on the need to create a new command focused on future warfare and innovation, with the aim of preparing for the demands of modern conflict.
Speaking about the establishment of a defense industry park, Pevkur noted that 20 companies were represented at an introductory event held on April 17, which gives hope that at least one ammunition manufacturer may decide to build a factory there. Companies must submit preliminary bids by May 15, with final offers due by June 15.
The defense minister emphasized that the additional funding package also includes many capabilities that will never be seen in military parades — such as data communications, secure communication systems, artificial intelligence and satellite communication equipment. These acquisitions are essential to ensure that new capabilities being developed are fully integrated, Pevkur said.
He also discussed ministry grants for defense industry companies, which will be allocated in consultation with the Defense Forces and based on their operational needs. Support will go to the company that is first able to meet those needs.
On Thursday, the government decided to increase funding for defense capabilities in order to meet new NATO force goals as quickly as possible. To that end, it approved the national defense investment add-on program known as KILP, under which Estonia will direct an average of 5.4 percent of its GDP toward defense through 2029.
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Editor: Mait Ots, Marcus Turovski