Foreign ministry to both continue cuts, see 2026 funding rise

The Foreign Ministry's budget is to rise next year, yet cost-cutting will go on simultaneously, Foreign Minister Margus Tsahkna (Eesti 200) said.
There are no planned cuts to foreign service or embassies on the horizon, he went on.
The Ministry of Foreign Affairs' budget has been on the tight side for several years now and while the Ministry of Defense, for instance, has had an exemption from cuts applied to the other ministries, given the changed security situation, this has not applied to the foreign ministry.
As recently as six months ago, Foreign Minister Margus Tsahkna (Eesti 200) told Õhtuleht that upcoming budgets were such that it would be impossible to maintain a foreign service with those declining funds. At the same time, the minister said he did not want to reduce the number of embassies abroad.
However, Tsahkna has told ERR that additional funds are to be allocated from the state budget to the Ministry of Foreign Affairs for the upcoming years.
"If we take a look at the current state budget strategy for the next four years, then with all these cuts, as well as the end of EU funding for business diplomacy programs, plus the fact that after 2027 we do not foresee funding for Ukraine reconstruction programs – then with all these cuts, according to the current state budget strategy the Ministry of Foreign Affairs' budget would fall by about 30 percent by 2028. I have stated clearly that if that happens, there is nothing else to do but for the Ministry of Foreign Affairs to have to start closing embassies en masse. The ministry is made up of diplomats and representations. The current agreement we reached, however, is that the ministry's budget will not decrease. In fact, we agreed on additional funding," Tsahkna said.
The size of the extra funding the ministry will receive will be made public this week, Tsahkna said.

Concurrent with the additional funding, however, is a cost-cutting task given to the ministry last year, which still remains in force. Whereas this year the ministry had to cut 5 percent compared with the previous year, next year it will have to cut 3 percent on top of that.
A ministry spokesperson said, however, that this extra funding outstrips the required cuts for next year, meaning a net growth in the foreign ministry's funding for next year.
"The cost-cutting task has in previous years been assigned from operating expenses. The Ministry of Foreign Affairs already carried out a major cut. At my proposal, two years ago, when we slashed 10 percent of the jobs at the main building. That major cut has in fact already been carried and is in the base budget. Some goals from earlier times remain; those will also be implemented. In parallel to that, however, we are strengthening the foreign service," Tsahkna outlined.
Despite the extra money, the issue of ministry real estate both in Estonia and abroad remains a major headache, the minister said.
"I am not even talking only about the main building, which needs a complete overhaul and has for years been on those lists concerning state investments. Unfortunately, no solution to that will come next year," Tsahkna went on, referring to the main ministry building on Islandi väljak in central Tallinn.
"Our biggest headache remains our embassies and representations. That policy adopted years ago – where since there was no money to buy and develop property at once, rental spaces were taken instead – has meant that the long-term cost of rentals to the state budget is significantly higher than owning property. Unfortunately, we will not be able to solve this problem next year. However, we will try to do as much as possible so that those representations, for example in Tokyo, which are in very poor condition, will still achieve a decent standard for the Estonian state. This problem concerning real estate remains the case for us."
The state budget for the following year and the state budget strategy for the upcoming years are drawn up at the same time, in autumn.
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Editor: Andrew Whyte, Mirjam Mäekivi










