Ministry of Defense would spend money from other ministries on infrastructure
The government has decided to allocate €200 million in previously unused EU funds to the defense sector. According to the Ministry of Defense, the money could be used for infrastructure projects for the EDF, as well as for the development of a defense industry park planned in Tõstamaa.
Last week, the government approved a decision to redirect €200 million in unused EU funds from other sectors to defense over the coming years.
By the middle of next week, ministries must submit proposals to the government indicating which of their planned projects they are willing to forgo in favor of boosting defense spending.
Oliver Tüür, head of the national defense department at the Ministry of Defense, said that the cohesion funds could most likely be used for various infrastructure projects.
"We're talking about defense-related infrastructure, infrastructure for allied forces, training facilities and also education-related infrastructure. The specific details are still being finalized. We'll present our proposals to the government and the final decisions will be made by the end of May," Tüür said.
According to Tüür, cohesion funds could also be used to build the core infrastructure for a defense industry park in Tõstamaa, Pärnu County. This includes access roads, power connections, fencing, water systems, storage facilities and other essentials to allow companies to begin operations in the park.
The companies set to operate in the Tõstamaa defense industry park will be selected in August, with production expected to begin there in 2027.
The EU cohesion funds earmarked for defense must be used by 2029. Tüür said this is an important factor in the ministry's decision-making process when determining where the money should go.
"The main criteria are the clarity of the projects. We have a plan and a clear understanding of the timeline. We have a good overview and the projects can be launched quickly. Infrastructure projects in our area of responsibility are generally quite predictable. We're relatively confident about when they'll be completed," Tüür said.
He emphasized that since the funds must be used no later than 2029, a key selection criterion is whether the chosen projects can be completed on time.
"We've selected specific projects that we believe can be finished by the deadline," he said.
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Editor: Marcus Turovski, Mirjam Mäekivi
