WARSAW - The Estonian military is allocating EUR111.5 million ($155 million) for capitalization investment during its 2014 fiscal year as it seeks to jump start the military modernization effort outlined under the National Defense Development Plan 2013-2022. The plan was unveiled on April 3, 2013, and calls for a defense spending baseline equal to 2 percent of national GDP based on an assumption of the country's economy growing by 3.01 percent annually over the ten-year period.
If this spending outline is met by the government over the course of the planning period Estonia's defense budget will reach EUR600.7 million ($829 million) by 2022. The defense earmark for 2013 was EUR361 million. Estonian Defense Minister Urmas Reinsalu cited an altered national security situation stemming from Russian actions in Ukraine as the impetus behind moving military capitalization funding forward.
Planned acquisitions include small arms weaponry, ammunition and armored vehicles. One such vehicle purchase Estonia aims to expedite involves the purchase of 44 second-hand CV9035 infantry fighting vehicles from Royal Netherlands Army stocks. This acquisition would meet part of the requirement of the National Defense Development Plan , which places an emphasis on equipping the Estonian Army's 1st and 2nd Infantry Brigades being outfitted with armored vehicles allowing them mechanized, rapid reaction capability.