Defence investments 2023-2027

You are currently reading foreword of the Commented Edition of the 2023 DefenceInvestments Outlook of the Estonian Centre forDefence Investments. This edition and the coming investment years are special for several reasons: war has returned to Europe, the defence budget has exceeded EUR 1 billion for the first time, and the market for defence materials has seen demand outstrip supply. In line with these turbulent times, we can expect a number of amendments to the Defence Investment Plan, and I, therefore, recommend you also view our upgraded website at, where you will find the procurement plan that is updated in real time.

The mission of the ECDI is to ensure that every euro invested in defence brings back as much defence capacity as possible. In addition, speed is of an essential nature in a changed security situation. We are committed to realising projects that offer the greatest possible leap forward in defence capacity and we have expressed this with the combination of numbers 24/02/2024, or the anniversary of the Republic of Estonia, exactly two years after Russia’s unprovoked attack on its neighbour. As General Herem has written: ‘/…/ we have no right to underestimate Russia’s aggressiveness in the future, and there is no reason to believe that a Russian defeat in Ukraine would be the end of the threat we face.’ It will be ip to ECDI to ensure that the force is armed, supplied and have a high attainability of necessary materiel.

The ambition is to establish and develop the fastest and most efficient supply chain. The best supply chain always has the best suppliers in all classifications:
the chain is only as strong as its weakest link. That is why all service providers, manufacturers, suppliers, and builders are particularly important to us. We expect the best performance from our suppliers at all times, and we value rigour in our people when it comes to delivering a value proposition – whether that value is in performance, speed, affordability or other aspects. One of the key challenges in the coming years will be a rapid increase in the number of projects and the volume of defence investments. In 2022, the volume of investments in defence was just under EUR 400 million, in 2023 it will increase to nearly EUR 600 million and is expected to continue growing at more or less the same pace in the following years. The EUR 1 billion mark is expected to be crossed by the end of the decade.

So how do we prevent or win the next war?

Si vis pacem, para bellum.

We are preparing for war and providing everything we need for national defence… and it is our pleasure to have such a reliable supplier base. Thank you dear suppliers!

Magnus-Valdemar Saar,
Director General at the
Estonian Centre for
Defence Investments


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