Ott Tammik

Ukraine’s allies should raise their annual defense spending to 2.5% of gross domestic product as Russia’s war in Ukraine has stoked fears of its future intentions, a top official in Estonia said.

Estonia expects its budget deficit to increase to 4.3% of GDP in 2023 from 0.9% in 2022, according to a Finance Ministry forecast posted by Estonian Public Broadcasting.

Estonian Prime Minister Kaja Kallas secured a deal for a new ruling coalition following her victory in last month’s elections, extending her tenure as one of Europe’s most ardent backers of Ukraine in its fight against Russia.

Russian security services have stepped up attempts to recruit Ukrainian refugees traveling to Estonia, the Baltic nation’s counterintelligence agency said in an annual report.

Estonia’s new coalition government agreed to rein in budget deficit to at least 3% of GDP over the next four years and will seek to draw up new tax hike plans before Midsummer Day, said Finance Minister Mart Vorklaev.

Estonia’s coalition government approved a sweeping tax hike bill that will now be reviewed by parliament.

The three Baltic states are looking to disconnect their power grids from Russia’s sooner than the previous goal of 2025 as part of a push to sever the last remaining energy link to Moscow.

Estonian Prime Minister Kaja Kallas called for a full ban on the transit of European Union goods through Russia amid concerns that a spike in trade with third countries is facilitating sanctions evasion.

Estonia’s far right surged ahead of Prime Minister Kaja Kallas’s party in an opinion poll after the newly elected premier came under pressure for tax hikes and spending cuts.

The European Central Bank is likely to continue raising interest rates at least two more times, according to Governing Council member Madis Muller.