Estonia set to increase defense spending

TALLINN. June 23 (Interfax) - Estonia is set to increase defense spending despite economic hardship, Estonian President Alar Karis said.

"We have made a difficult political decision to increase defense spending to 3% of GDP," Karis said at a parade celebrating the day of victory over German forces on Friday.

"At the same time, we see difficult times approaching for the Estonian economy: enterprises are shutting down, entrepreneurs are less willing to invest, and foreign investors have doubts," he said.

"The 3% investment in defense is expected to dispel these doubts: the better Estonia is protected, the safer it will be for the economy, investments, and everyone," Karis said.