Lithuania announces plans to boost defence spending to more than 5% of GDP

By Defence Industry Europe

Lithuanian President Gitanas Nausėda and Defence Minister Dovilė Šakalienė have announced a plan to significantly increase the country’s defence spending. Speaking during a State Defence Council meeting, they outlined intentions to allocate an average of 5.5% of GDP to military expenditure between 2026 and 2030, enhancing Lithuania’s national security.

 

President Nausėda stated that the increased spending would range between 5% and 6% of GDP. Despite the budget rise, he assured citizens that efforts would be made to avoid higher taxes, emphasising a streamlined implementation process with the full engagement of government institutions.

The additional funds aim to expedite the acquisition of military equipment and weaponry, which are expected to strengthen Lithuania’s deterrence capabilities. They will also accelerate the formation of a military division, a project originally projected to be completed by 2030 but now facing higher-than-anticipated costs.

 

 

Under current funding levels, the division’s readiness might be delayed until 2036-2040. The proposed budget increase will address this shortfall, ensuring the division is operational within the planned timeline and capable of contributing to national defence.

Lithuania’s plans align with broader efforts to bolster self-reliant defence capabilities while maintaining strong ties with allied nations. This move also reflects US pressures, particularly under former President Donald Trump, urging European countries to increase their defence contributions.

 

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