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DE RUEHTL #0327/01 3140950
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R 100950Z NOV 09
FM AMEMBASSY TALLINN
TO RUEHC/SECSTATE WASHDC 0212
INFO EUROPEAN POLITICAL COLLECTIVE

UNCLAS SECTION 01 OF 02 TALLINN 000327 
 
SIPDIS 
 
E.O. 12958: N/A 
TAGS: PREL MARR MASS ECON EN
SUBJECT: Estonian Defense Budget: Preserving Deployments Amidst Cuts 
 
REF: TALLINN 350 
 
¶1.  SUMMARY.  Estonia's 2010 defense budget falls just short of its 
NATO commitment to spend two percent on defense, coming in at 1.86 
percent of GDP.  While  the budget has fallen in absolute terms, 
defense spending remains comparable to 2009 as a percentage of GDP. 
The budget preserves spending on international deployments, Baltic 
Air Policing, renovation of the Amari Airfield, and recruitment. 
Estonia is also committed to maintaining its host country support 
for the Baltic Defense College and Cyber Center.  Cuts were instead 
made in operations, management, personnel, and procurement.  In the 
near term, the economic crisis has solved recruiting challenges, 
but these will probably resurface when the economy recovers.  Post 
will endeavor to use all available means, FMF, IMET and other 
resources such as Estonia's relationship with the Maryland National 
Guard, to help ease the pain caused by the cuts.  END SUMMARY. 
 
 
 
 
¶2.  Estonia will not meet its NATO commitment of two percent of GDP 
for its 2010 defense budget.  The current projection is a defense 
budget of approximately 3.9 billion EEK (USD 374 million) or 1.86 
percent of GDP.  This is less than a three percent fall from the 
2009 budget, which was 1.88 percent of GDP.  The economic crisis 
caused larger cuts, of approximately 12 percent, between 2008 and 
¶2009.  Even though the 2008 defense budget was larger, at 4.5 
billion EEK, it represented only 1.85 percent of GDP at the time. 
 
 
 
International Deployments Preserved, Procurement Delayed 
 
--------------------------------------------- ---------------------- 
------------- 
 
 
 
¶3.  In the budget debate there  was broad consensus within the GOE 
to avoid cutting expenditures for Estonia's international 
deployments,  air policing and infrastructure development at Amari 
Air Base (which Estonia has offered for NATO Air Policing), and 
recruitment for the Estonian Defense Forces (EDF).  The GOE will 
also maintain host-nation support to both the Baltic Defense 
College and NATO's Cooperative Cyber Defense Center of Excellence. 
The MoD made cuts primarily in the areas of operations, management 
and personnel expenditures, and some procurement and infrastructure 
projects were postponed.  However, MoD made cuts in such a way that 
the primary objectives of the 2009-2018 Defense Development Plan 
would still be achievable within or close to each items' projected 
timeline. 
 
 
 
¶4. Overall, the defense establishment has a positive outlook, and 
views the economic crisis as an opportunity to implement reforms 
that will make Estonia's defense structure more efficient and 
effective.  The EDF will continue to conduct planning for new 
acquisitions and development of enhanced capabilities and seek to 
put the following plans back on track as the financial situation 
allows:  a mobile short-to-medium range air defense capability, the 
fielding of a high readiness infantry brigade, development of a 
mechanized battalion, and continued enhancement of anti-tank 
capabilities.  The 10-year development plan also incorporates 
development of a multi-role helicopter program for the EDF and a 
fast patrol boat capability for the Navy. 
 
 
 
Economic Crisis Boosts Recruitment 
 
--------------------------------------------- -- 
 
 
 
¶5.  One silver lining to the economic crisis has been the boost to 
recruitment.  Prior to the economic crisis, the EDF had difficulty 
meeting its recruitment goals, when, according to Land Forces 
Commander COL Indrek Sirel, the starting salary at McDonald's was 
comparable to a new recruit's salary.  Now there is a long waiting 
list, and Sirel's only concern is keeping the funds flowing that 
allow the EDF to move people from the waiting list into uniform in 
a timely fashion.  However, even during the economic crisis, Sirel 
noted that the EDF faces challenges in keeping some critical combat 
service support positions filled, most notably medics.  He 
anticipates that this task will only become more difficult as the 
economy recovers. 
 
TALLINN 00000327  002 OF 002 
 
 
¶6.  The rosy recruitment picture aside, the EDF maintains its 
commitment to a mixed force structure of conscripts and regular 
soldiers.  Sirel considers conscription to be one of the best 
methods for recruitment into the regular armed forces. As part of 
the 10-year development plan, the MoD foresees an annual increase 
of 125 regular members for the EDF with a total force of 4,000 
regulars by 2018 (up from 3,300 now).  At that time, a reserve 
force of 25,000 will also complement the regular EDF.  The 
development plan also incorporates significant improvements in the 
organization of the Defense League, a volunteer, paramilitary force 
whose chief aim is territorial defense but has served as the basis 
for Estonia's recent deployments in Kosovo.  The Defense League 
currently consists of approximately 10,000 members, plus an 
additional 9,000 members in women's and youth auxiliary units. 
Professional development of the EDF and Defense League Officer and 
Non-commissioned Officer Corps are other key elements of the 
10-year development plan that the MoD has committed to maintaining 
amid the current round of cuts. 
 
 
 
¶7. Comment: Post believes FMF and IMET funds can play a critical 
role in helping this key NATO ally keep its long-term development 
plan on track while still serving  in international peace and 
security missions.  For its size, Estonia has been a major 
contributor to international operations, and GOE officials 
routinely ask for more chances for their military to serve 
alongside U.S. forces.  The Estonian military deploys without 
caveats, and receives high-marks from its partners.  In this 
regard, Post will request a significant increase in FMF and IMET 
funding for Estonia.  Post further believes that other training 
opportunities, such as those presented by the Defense League's 
relationship with the Maryland National Guard, can play an 
important role in helping Estonia achieve its military development 
goals.   Every Estonian soldier deployed means one less American 
downrange, and as Estonians want to keep working with our military, 
investments in the EDF means American lives saved. 
DECKER