Estonia to borrow up to €3.6 billion in defence loans

Speaking in Estonia in a joint news conference on Saturday with Prime Minister Kristen Michal, European Commission President Ursula von der Leyen stressed that sanctions against Russia should be tightened and Europe needs to bolster its defence spending.

“Our aim is that by 2030, we have significantly filled all gaps that we have identified today,” von der Leyen said speaking at the Ämari Air Base, where NATO aircrafts are stationed. “Here we put a strong focus on defence.”

“Estonia is making the Eastern flank safer. And Europe, stronger,” von der Leyen added.

With the help of the European Commission’s Security Action for Europe (SAFE) loan instrument, Estonia plans to borrow €3.6 billion to fund their defence spending.

“Estonia is already among NATO’s top defence spenders relative to GDP,” the European Commission chief said in a statement. “So, we are rapidly investing more, we are investing better, and we are investing European.”

“We have no illusions. Russia can be stopped only by force, only by united force,” Estonia’s Prime Minister Kristen Michal said at the press conference on Saturday.

Von der Leyen and Michal also discussed tightening sanctions against Russia, specifically on its shadow fleet, as well as how to move forward with Russia’s frozen assets.

Von der Leyen’s visit to Estonia comes as part of her four-day tour of European states bordering Russia or its ally Belarus, aimed at stressing solidarity with border states and supporting the development of Europe’s defense industry.

Von der Leyen’s tour consists of visits to Finland, Estonia, Lithuania, Latvia and Poland, countries that share a border with Russia or Belarus, as well as Bulgaria and Romania.