The money, which comes from cohesion funds, will be spread across five defense-related areas.

The largest portion, €84.8 million, is going toward the development of military mobility on roads and railways. The investments include road construction along the Tallinn–Pärnu–Ikla and Tallinn–Tartu routes, as well as the development of Rail Baltic.

The list of specific projects will be finalized in negotiations with the European Commission.

€52 million will be spent on basic infrastructure for the defense industry park in Pärnu County where ammunition factories will be built. The government has agreed to build the basic infrastructure to attract private companies to the park.

€24.5 million will be used to support both the reception of allied forces and the operations of the Estonian Defense Forces.

€23.8 million will be invested to support product development by defense contractors. The goal is to increase the competitiveness of Estonia's defense industry and promote the creation of innovative, high value-added products.

The government will allocate €14.9 million for research and development to strengthen defense technology testing capabilities and develop artificial intelligence applications for comprehensive national defense.

The proposals will be submitted to the European Commission for negotiation, with activities expected to begin in 2026.

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