The Cabinet has approved the basic framework for Estonia's national plan for the European Union's 2028-2034 budget period, including an initial proposal for allocating funding. The national plan is the central strategic document that will guide Estonia's use of funding from the EU's long-term budget.

The national plan is based on five priority pillars: the economy and competitiveness, security and resilience, rural development, agriculture and fisheries, education and social cohesion and good governance. The most important reforms and investments for the next period will be grouped under these pillars, helping Estonia achieve its long-term development goals, the government's press service said.

Under the national plan's initial allocation proposal, more than half of the funding would go toward boosting economic competitiveness and strengthening security and crisis preparedness, accounting for 33 percent and 19 percent of funding, respectively. Another 38 percent would go toward rural development objectives, including the Common Agricultural Policy, fisheries and the food sector. Education and social cohesion would receive 10 percent, while approximately 1 percent would go toward good governance.

Under the European Commission's proposal, Estonia would receive approximately €6.5 billion in the next budget period. The initial allocation through 2031 covers €5.5 billion in investment needs. The final amount of funding is still subject to change during negotiations and will depend on an agreement on the European Union's 2028-2034 long-term budget.

The final package of EU funding for the next budget period and Estonia's national plan will be completed after an agreement is reached on the EU's long-term budget and negotiations between the European Commission and Estonia on the national plan's content and funding have concluded. This is expected in fall 2027.

For example, €260 million proposed by the Ministry of Economic Affairs and Communications is intended primarily for strategic industrial investments and research and development, with the aim of establishing new production capacity, expanding factories and supporting the production of higher-value-added goods.

To modernize production, the ministry has also proposed allocating at least another €45 million to the digitalization and automation of businesses and the adoption of artificial intelligence solutions. Funding would also support stronger cybersecurity and reduced bureaucracy, helping businesses cut costs and operate more efficiently.

The proposals also emphasize the importance of ensuring that economic growth is not concentrated solely in and around Tallinn and Tartu. A total of €108 million is planned to support regional businesses and the growth of small and medium-sized enterprises outside the country's major centers. Among other things, the funding would be used to develop industrial and business areas with the aim of creating well-paying jobs across Estonia.

Helicopter procurement planned

In the field of internal security, the government plans to purchase multipurpose helicopters and a surveillance aircraft, strengthen border security, combat serious crime, manage migration and create more shelter capacity, the Ministry of the Interior said.

Police aviation capabilities need to be upgraded to ensure that Estonia can continue to provide round-the-clock border surveillance, rescue people at sea, transport patients from the islands and respond to major emergencies. The upgraded aviation capability must also make it possible to respond to several incidents simultaneously and maintain readiness when some aircraft are undergoing maintenance, being used for training or already deployed on other missions.

EU funding will also be used to strengthen surveillance of Estonia's external border. Various procedures will be digitalized to improve migration management, while digital travel documents and visas will also be introduced.

EU funding will also be used to create more shelter capacity in apartment buildings and healthcare, social services, education and cultural institutions. Public warning systems and crisis communications will also be improved to ensure people quickly receive up-to-date information and act accordingly.

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