Estonia spending ‘almost 7%’ of GDP on defence, prime minister says

Estonian Prime Minister Kristen Michal (Reform party) has claimed Estonia is spending almost 7 percent of Gross Domestic Product (GDP) on defence under NATO's new spending goal.

Speaking at this week's NATO Summit in Ankara, Turkey, Michal called on allies to increase their defence expenditure during his opening remarks, saying Estonia is investing "almost 7 percent this year" in defence.

Under the goal set at last year's NATO summit, allies agreed to allocate 5 percent of GDP to defence in the coming years. This target is split into two parts:

1) 3.5 percent for core military expenditures, such as personnel, operations, equipment, and maintenance.

2) 1.5 percent for security-related spending, such as cyberdefence, supply chain resilience, critical infrastructure, logistics, and defense innovation.

Estonia's Defence Mistry foreign communications adviser Liisa Tagel told the newspaper Postimees that when these two parts are combined, it totals 6.9 percent.

A united and stronger NATO benefits every Ally. Estonia already invests 7% of GDP in defence, with more than 5% going to core defence. We hope all Allies will keep increasing defence spending.

Defence spending must become capabilities. NATO needs a stronger forward defence, more… pic.twitter.com/QK664gSG5Q

— Kristen Michal (@KristenMichalPM) July 8, 2026

"The 5 percent Estonia most often talks about – which is actually 5.4 percent – is, by NATO's definition, spent entirely on hard security, meaning areas related to military security," she said. "Estonia has budgeted 1.5 percent of GDP this year for non-military national defence."

Join the 5% Club!

At the summit on Wednesday, Lithuanian officials, including the president, foreign and defence ministers, and Estonia's Minister of Foreign Affairs Margus Tsahkna (Eesti 200) called on other countries to boost their spending and were seen wearing "5% club" badges.

Both countries are spending at least 5% of GDP on defence this year.

Together with @BudrysKestutis in the 5% Club.

The club is open. Join us.

Invest more and make @NATO stronger. pic.twitter.com/3cY000eaW9

— Margus Tsahkna (@Tsahkna) July 8, 2026

President Gitanas Nauseda wrote on X: "Less talk. More action. Join the 5% Club!"

Tsahkna said: "The club is open. Join us."

The article was initially published on July 8, 2026, 13:22 (CEST).