The Baltic states are stepping up their air, missile and drone defence capabilities, as Estonia, Latvia and Lithuania invest in new systems to address growing security threats in Central and Eastern Europe (CEE).
The acceleration of defence-related investments in the Baltic region comes amid heightened concerns about Russian military activity near NATO borders and renewed hybrid threats in the Baltic Sea. NATO officials have welcomed the moves, viewing the Baltic states as critical anchors in the alliance’s eastern defence line.
Estonia enhances defence systems with HIMARS
Estonia announced an additional EUR 123mn in defence spending earlier this month, pushing its total military budget to over 3.5% of GDP. The extra funding will expand HIMARS long-range missile systems, procure new medium-range air defence platforms, and enhance drone warfare capabilities. Estonia is also upgrading its anti-tank weapons and surveillance radars.
Former Estonian permanent secretary for defence Kusti Salm said the investment was crucial to adapting Estonia’s armed forces to a “fundamentally changed security environment” in the Baltic region. “We are not simply maintaining our previous levels of defence — we are transforming the EDF for future challenges,” he told local media.
Local reports say the country is planning to acquire a short-range air defence system similar to Israel’s Iron Dome. Deliveries of several new systems are expected to begin later in 2025. Salm said: “We are not simply maintaining our previous levels of defence. We are transforming the Estonian Defence Forces to meet the evolving security challenges and to ensure NATO’s seamless integration across our forces.”
Latvia expands air defence, drone capabilities
Latvia is similarly ramping up its defence posture. In early 2025, the country finalised a EUR 600mn contract for IRIS-T SLM medium-range air defence systems from Germany, with initial deliveries planned for 2026.
The country also announced the creation of a new national drone command unit, designed to enhance rapid response capabilities and integrate drone operations into broader defence planning.
Latvian Defence Minister Andris Spruds said the new drone initiative will significantly improve operational flexibility. Latvia’s defence budget is set to reach 3% of GDP this year.
Lithuania moves to strengthen NATO role
For its part, Lithuania is advancing its efforts to acquire US-made Patriot missile systems, having signed preliminary agreements earlier this year. Formal procurement is expected to be completed in late 2025. Lithuania plans to raise its defence spending to 3.5% of GDP by 2027, as part of a long-term commitment to strengthening its military capabilities.
In addition to missile systems, Lithuania is continuing to invest in surveillance drones and battlefield communications technologies, supported by EU resilience funding. The Lithuanian Defence Ministry said the Patriot acquisition would deepen the country’s role within NATO’s integrated air and missile defence network.
Increased Baltic coordination under NATO’s Eastern Flank Strategy
The three countries are coordinating their defence purchases under the Baltic Defence Cooperation framework, which was updated in March 2025, and emphasises interoperability across air defence, missile, drone and radar systems. Joint logistics, maintenance and operational planning initiatives are already underway.
Baltic officials have indicated that some new purchases may be coordinated through European Defence Fund projects to maximise interoperability with allied forces.
Estonian Defence Minister Hanno Pevkur said strengthening regional interoperability with NATO allies remains a priority. Estonia, Latvia, and Lithuania are working with the EU to secure additional funding for their upgrades under the Fund, particularly for cutting-edge drone systems and new short-range air defence platforms.
Analysts said by aligning their procurement strategies, Estonia, Latvia and Lithuania aim to create a more resilient and mutually reinforcing regional defence posture.
The Ministry of Defence of Poland, which borders Lithuania, has meanwhile committed over EUR 30bn to equipment modernisation over the next two years.
Poland’s main stock market index, the Warsaw Stock Exchange (WIG), closed above 100,000 points for…
Poland has launched a new national doctrine aimed at establishing the country as the dominant…
Prague has launched two major transport infrastructure projects, expanding Vaclav Havel Airport and introducing a…
The EU’s employment rate reached a record high of 70.9% in the fourth quarter of…
Greece has announced plans to repay its first bailout loans a decade ahead of schedule,…
Despite their export-driven economies and strong manufacturing bases, Central and Eastern Europe (CEE) countries may…