Estonia, Lithuania boost defense spending to 5% of GDP by 2026

Lithuania plans to allocate 5.25% of its GDP to military spending in its 2026 budget, with the aim of establishing a national military division and preparing to host a German brigade by 2030, according to Prime Minister Gintautas Paluckas. The funding strategy will involve a combination of borrowing from businesses and economic growth, ensuring that the state is not solely responsible for the financial burden. Meanwhile, Estonia has announced a similar increase in defense spending, committing to at least 5% of GDP starting in 2026, which reflects the heightened security concerns stemming from Russia's aggression in Ukraine. Estonian Prime Minister Kristen Michal emphasized the need for this increase to enhance military capabilities and deter potential threats. The government is also exploring the possibility of reallocating unused EU funds to bolster defense initiatives. Both nations are responding to evolving security dynamics in the region by significantly ramping up their military budgets.