New Estonian Government Vows To Raise Defense Spending, Tighten Russia Sanctions

The new Estonian government, which took office on Monday, intends to increase the defense expenditure of the country to 3% of GDP, tighten sanctions against Russia and raise certain taxes, the government's press service said in a statement

HELSINKI (UrduPoint News / Sputnik - 17th April, 2023) The new Estonian government, which took office on Monday, intends to increase the defense expenditure of the country to 3% of GDP, tighten sanctions against Russia and raise certain taxes, the government's press service said in a statement.

"According to the coalition agreement (of the parties making up the Estonian government), 3% of the national GDP will be allocated for the defense expenditure in the next four years, to be added by the allies' deployment costs. The main areas of focus for the Estonian Defense Forces will be the development of multilevel air defense systems (including anti-UAV defense systems) and of long-range missile systems as well as ammunition stock increase," the statement read.

The government also announced supporting measures for the Estonian defense industry, and the construction of an industrial estate for the production of ammunition, weapons and drones. A new cyber security department and a network-centric rapid reaction task force will be established as well, according to the statement.

Moreover, Estonia intends to call for an increase in the defense expenditure of the NATO countries of up to 2.5% of their respective GDPs as well as to urge the alliance's members to deploy advanced weapons systems in Estonia and to build up the stock of military equipment and ammunition in the country.

"Estonia will advocate the tightening of sanctions against Russia in the European Union as well as support Ukraine economically, politically and militarily, lobbying for its accession to NATO as well as for the speediest start of negotiations for Ukraine and Moldova to join the EU," the press service said, quoting the coalition agreement.

Estonian foreign policy will focus on further expansion of the EU and NATO as well as on comprehensive strategic cooperation with the US.

The coalition agreement provides for a 2% increase in both the turnover tax, starting on January 1, 2024, and the personal income tax, starting on January 1, 2025. The government also intends to introduce a car tax in 2024, whose rate is yet to be determined.