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The Lithuanian MoD described it as a "historic decision" amid fears of further Russian expansionism. (Ministry of National Defence Lithuania)

Lithuania pledges 5-6% of GDP for defence in NATO first

Lithuania will seek European funding to surpass Poland as NATO’s highest defence spender by percentage of GDP.

14 JAN 2025

By

Alex

Blair

Lithuania has pledged to allocate between 5% and 6% of GDP for defence spending from 2026 until 2030, pointing to the threat of Russian military aggression as the full-scale conflict with Ukraine nears the three-year mark.

The State Defence Council (VGT), made up of Lithuania’s top political and military brass, announced the hike in funding after a meeting on 17 January. Newly inaugurated Prime Minister Gitanas Nausėda said Lithuania would “lead by example” and the funds would “create a fully capable division by 2030 and enhance our national defence capabilities”.

Once implemented, Lithuania will become NATO’s highest defence spender in percentage of GDP terms, surpassing Poland (4.7%) and the US (3.5%).

Lithuania’s original state budget for 2025 earmarked EUR2.5 billion for defence – slightly more than 3% of GDP. However, Lithuania’s new government increased the borrowing limit by EUR800 million after taking office in December, which could raise defence spending to 4% of GDP.

Lithuania's Ministry of National Defence had not responded to DSEI’s request for comment at the time of publication.

Alex

Blair

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