Investor Presentaiton
Security agreements reduce external threat
NATO has renewed its commitment to Estonia, which is stepping up its defence spending
Russian actions in Ukraine have strengthened NATO's commitment to the Baltics, including the stationing of additional troops in
Estonia. In parallel, Estonia has strengthened its own security strategy by materially increasing defence spending above 2% of GDP
EU membership
• Estonia's membership in the EU and eurozone provides
significant monetary, financial and institutional stability
• The EU has its own security and defence cooperation
agreement, strengthened at the Bratislava Summit in 2016
• The security plan focuses on responding to external crises,
building partner capacity and protecting the EU and its citizens
Defence spending (2% GDP NATO recommended level)
NATO membership
⚫ Joined NATO in 2004, with NATO troops stationed in the country since 2017
⚫ The allied troop contingent increased to 2,200 after the Russian invasion of
Ukraine in a show of commitment from the organization
•
• Finland/Sweden NATO membership to further strengthen the Baltic umbrella
The new government plans to keep defence spending well above the 2%
level of GDP which NATO members pledge
Number of NATO military personnel in Baltics
9
7.62 7.55 7.55 7.48
8
20,000
6.72
7
5.98
5.37 5.34
6
4.91
15,000
5
4
3
10,000
2
17,800
1
2.12 2.40
2.05 2.37 2.89 3.28 3.22 3.20 3.11
0
5,000
2019 2020
2021
2022 2023f 2024f 2025f 2026f 2027f
Expenditure in % of GDP
0
NATO members pledge
Lithuania
Share of GG* total expenditure (in %)
10
Source: Statistics Estonia, Ministry of Finance Budget Strategy 2024-2027
Note: (*) GG: General Government
Source: Statista, September 2023
7,600
6,900
Latvia
Estonia
雲雲
REPUBLIC OF ESTONIA
MINISTRY OF FINANCEView entire presentation