10
Loading video...
By Michael D. Carroll
Breaking News Editor
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
Lithuania and Estonia have become the first NATO members to pledge an increase in defense spending to five percent of GDP, according to a report by the Financial Times.
Lithuanian Foreign Minister Kestutis Budrys and Estonian Prime Minister Kristan Michal confirmed their countries' commitment to strengthening defense capabilities in response to regional security concerns, the report said.
Why It Matters
The decision comes amid growing pressure from the U.S. President Donald Trump for allies to boost military expenditure while he seeks to end of the war in Ukraine and turn American military resources increasingly toward China and the Asia-Pacific.
Read More on News
...
What to Know
According to the report, Budrys stated that his country plans to allocate between five percent and six percent of its GDP to defense starting in 2026 and continuing through at least 2030. He described U.S. pressure to boost military spending as "good and constructive," emphasizing the importance of strengthening defense capabilities in the face of growing regional threats.
The new policy will make Lithuania and Estonia the highest defense spenders in NATO in percentage terms, surpassing Poland, which currently allocates over four percent of its GDP to defense.
...
What Pressure Has Trump Put on NATO Allies?
U.S. President Donald Trump has urged NATO members to substantially increase their defense budgets, advocating for a minimum threshold of five percent of GDP, a significant jump from the current two percent target.
Trump has long criticized NATO allies for failing to meet spending commitments. While Lithuania's pledge aligns with his demands for greater defense investment, it also reflects a broader regional shift aimed at strengthening military capabilities in response to Russian aggression.
How Did Estonia and Lithuania Respond?
Budrys stated that Vilnius plans to finance the increase in defense spending through government borrowing, while Estonian Prime Minister Kristan Michal indicated that Tallinn would implement "public sector cuts" to meet its defense targets. However, skepticism remains in Lithuania about the feasibility of achieving such ambitious spending levels.
What People Are Saying
Lithuanian Foreign Minister Kestutis Budrys is reported by the Financial Times to have said in reference to the U.S. "Of course, there's pressure [ …] from our main and biggest ally in NATO. We cannot ignore those messages."
Estonian Prime Minister Kristan Michal was also reported to have said "Our key security partner, under its new president [Donald Trump], has sent a clear message: NATO defense spending must increase. And I fully agree—our goal should be five percent."
U.S. President Donald Trump said in his speech at Davos on Jan. 23 in reference to U.S. defense spending in Europe: "Many things have been unfair for many years to the United States."
What Happens Next
Moscow has consistently warned that NATO's policies could heighten tensions in Europe and increase the likelihood of a direct confrontation between the alliance and Russia.
View 0 Comments
Submit Correction
View Editorial & AI Guidelines