The European Union wants to change the rules so that money from the regional development fund can also be used for defense. In Estonia, 640 million euros from this fund remain unused. Certainly, not all of this money will be used for defense, says the head of the Ministry of Finance, Triin Tomingas.
We are awaiting clarity on how the rules will be changed. Then we will find out how much money can be used for defense. Currently, it is estimated that about half of the funds, or 300 million euros, could go to defense.
The money is not intended for purchasing weapons but for supporting the defense industry. It will help build infrastructure, cybersecurity, and energy security. Dual-use investments are also allowed.
Clarification on the rule changes is expected by next week. Even if all the money could be used for defense, this is unlikely. The money would have to be taken from other areas, which could be challenging.
For example, 30% of the funds must go to green initiatives. This portion cannot be used for defense. Also, already allocated money cannot be used for new purposes.
It is also important that defense projects must be completed quickly. By the end of the funding period, all the money must be used. If this is not done, we will lose the money.
The European Commission is trying to change the rules quickly, within about 2-3 months. So by summer, it should be clear how the money can be used. The purpose of the regional development fund is to help poorer regions. Now Europe wants to use part of the funds for defense.