Estonia

For the first time since 1995, investment as a share of the economy is higher in Lithuania than in Estonia. According to Eurostat, gross fixed capital formation in Lithuania amounted to 22.1% of GDP in the first quarter of 2026, while in Estonia it fell to 21.7%. Lithuania remained ahead in the second quarter, with investment reaching 22.4% of GDP, compared with 22.1% in Estonia.

Prime Minister Kristen Michal (Reform) said that Estonia\'s air defenses will become multilayered over the next few years, with over EUR 200 million invested in drone defense.

Nordic and Baltic cooperation has been growing stronger for a long time and could culminate in a United North as a new pillar of strength for the free world grounded in democracy, trust, and a shared responsibility for security, writes Marko Mihkelson.

Next year, participants in Lithuania’s second-pillar funded pension system will face a personal financial referendum: to stay and save, to withdraw and leave, to transfer savings to the third pillar of the pension system, or to invest independently. Estonia tried the same approach in 2021, and economists at its central bank assessed the consequences. Estonia’s experience is highly relevant for Lithuania – similar outcomes are plausible here as well. 

The trade war presents Europe with an opportunity to leverage the situation for a strategic edge and a push to reduce its dependence on the United States — whether in the areas of technology, energy, defense, or raw materials. The United States\' game of imposing tariffs, along with the European Union\'s retaliatory duties, does not support free trade. It is clear that endlessly raising tariffs on both sides benefits neither party.

\"Estonia will never recognize the forcible seizure of Ukrainian territory,\" Prime Minister Kristen Michal (Reform) said. Despite differences between Ukraine, European countries, and the US on peace, the Prime Minister remains hopeful about progress in upcoming talks after Wednesday\'s summit in London drew a blank.

The Estonian economy is showing green shoots of recovery again, and people\'s real purchasing power has risen since June of last year. These are the words of the Minister of Economic Affairs and IT Erkki Keldo . He also added that wages have also been outpacing inflation. Speaking to \"Esimene stuudio,\" Keldo noted that people\'s real purchasing power has been increasing since June of last year.

The state must act where there is no other way. However, when it intervenes, the state must be efficient, strong, and decisive. In other areas, we must understand that our success is a collective creation, with the main author being the free citizen. Life improves only when solutions are in the hands of citizens, not dictated by the state.

By investing in government bonds, every citizen can contribute and demonstrate their faith and support for the Estonian state. Government bonds strengthen its security, provide additional income for Estonians, and stimulate the economy, writes Mart Võrklaev. The long-awaited issuance of government bonds targeted at Estonian retail investors, which has been on nearly everyone\'s mind in recent months is now open.

The Estonian Reform Party approved Prime Minister Kristen Michal to continue as the party leader at the general meeting held on Sunday. Michal said \"We are unique in Estonian politics. Our work culture brings people together but does not shy away from asking difficult questions. Our respect comes from mastering the subject and getting the work done, not merely nodding in agreement. (...)\"