Lithuania, Estonia pledge 5% defense spending in response to Trump’s calls

Lithuania and Estonia have responded to U.S. President Donald Trump’s calls by committing to increase their defense spending to over 5% of their gross domestic product (GDP), according to the Financial Times. These countries are the first NATO members to make this pledge.

Why it matters?

This shift in defense spending by Lithuania and Estonia highlights growing security concerns in Europe, particularly with Russia’s ongoing invasion of Ukraine. Their commitment sets a new standard for NATO members, pushing for higher defense investments across the alliance.

Details

• Lithuania’s commitment: Lithuania’s Foreign Minister Kestutis Budrys confirmed that the country plans to spend 5% to 6% of its GDP on defense starting next year and continuing through at least 2030. This is nearly double their current defense spending. Budrys noted that while external pressure, particularly from NATO’s largest ally, the U.S., played a role, Lithuania’s need to bolster its defense for national security was also a key factor.
• Estonia’s response: Estonia’s Prime Minister Kristen Michal also stated that Estonia aims to allocate 5% of its GDP to defense, a significant increase from the current 3.7%. She acknowledged that this decision was influenced by a strong message from the U.S. under President Trump’s leadership.
• NATO’s new spending targets: NATO is preparing to raise its informal defense spending target from 2% to 3% or 3.5% during the upcoming summit in June. However, President Trump has called for an even higher target of 5%, which has already been agreed upon by several NATO countries, including Poland, which is already spending over 4% on defense.
• Concerns, challenges: While 23 out of NATO’s 32 member countries met the 2% target last year, there are concerns over how the increased defense spending will be financed. Countries like Spain, Italy, and Belgium, which are expected to spend less than 1.5% of their GDP on defense in 2024, face challenges in balancing defense investments with other public service needs.

Increased tensions

Lithuania and Estonia, both of which are located close to Russia, are particularly vulnerable to security risks due to Russia’s ongoing aggression in Ukraine.

This has led to their decision to prioritize defense spending as a matter of national security while responding to NATO’s and the U.S.’s calls for stronger defense commitments.