Estonia and Lithuania have both announced they plan to increase their military spending to 5% of GDP or even higher, in response to President Donald Trump’s demand that all NATO members take that step. Kestutis Budrys, Lithuania’s foreign minister, told Financial Times that Europe was facing a “new era” after the Baltic state said it would spend between 5% and 6% of its GDP on defense from next year until at least 2030, almost doubling the current level. “Of course, there’s pressure, and it’s good and constructive pressure from our strategic and biggest ally in NATO,” he said. “We cannot ignore those messages. But it’s not the sole reason…. It is existential for us to have real war-fighting capabilities here.”
Estonian Prime Minister Kristen Michal responded to Lithuania’s pledge by saying his country would also target 5% of GDP for defense spending, up from its current 3.7%, which is itself ahead of U.S. expenditure as a share of its economic output. “Our key security partner, under its new President, has sent a clear message: NATO defence spending must increase. We know our opponent, and I fully agree—our goal should be 5%,” he said.