TALLINN, Estonia (ChatnewsTV) — Estonian Prime Minister Kristen Michal called for a significant increase in European defense spending during his opening address at the 18th Annual Baltic Conference on Defence (ABCD) in Tallinn on Wednesday. Warning that Russia is prepared for a prolonged military confrontation, Michal emphasized that Europe must boost its defense investments if it wants to be taken seriously on the global stage.
“To meet the demands of the current security environment, we need to be investing significantly more in defense and defense-related industries,” Michal said. “And not just an extra billion or two, but hundreds of billions.” He suggested that NATO’s current 2% GDP defense spending benchmark is insufficient and urged the alliance to raise it to at least 2.5% or 3% at the upcoming NATO summit in The Hague.
Estonia is leading by example, with defense spending set to reach 3.4% of GDP this year, and possibly as high as 3.7% in future years. To support these efforts, Michal announced that Estonia will introduce a temporary security tax to further bolster its defense capabilities.
In addition to increasing spending, Michal advocated for easing restrictions on investment in the defense industry and fostering long-term planning for defense companies. “We are launching a €100 million defense industry fund in Estonia with a mandate to invest in lethal technology, making it unique in Europe,” he said. He also highlighted plans to accelerate the development of Estonia’s defense industrial park and encouraged partnerships between Estonian and Ukrainian companies, a move aimed at strengthening ties in the face of shared security concerns.
The Prime Minister also stressed the urgency of supplying Ukraine with the ammunition and air defense systems it needs to fend off Russian aggression. “Investment in defense and a ramped-up defense industry will more quickly address NATO’s current capability shortfalls,” Michal said, adding that such efforts would send a clear message to Moscow that the West is prepared to act decisively.
The ABCD conference, organized by the International Centre for Defence and Security and Estonia’s Ministry of Defence, focuses this year on enhancing Europe’s defense readiness in the face of rising global threats.
By Gabriel Ani
