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Lithuania Planning To Jack Up Defense Spending To 5.5% of GDP

The Lithuanian State Defense Council (VGT), which includes Lithuania’s top political and military leaders, has agreed to dedicate 5.5% of GDP to military spending over the coming five years, reported LRT, the Lithuanian Radio and Television service. “We have agreed that in the period 2026-2030 we will allocate between 5 and 6% of gross domestic product to defense annually,” President Gitanas Nauseda told reporters after the VGT meeting on Jan. 17. The additional spending, he claimed, is needed to build up a military division within the Lithuanian armed forces faster. “May we lead by example,” he added.

Defense officials originally planned to have an infantry division, equipped with German Leopard tanks and other gear operational by 2030, but determined that current funding levels meant that it wouldn’t be ready until the 2036-2040 time period. According to the President, Lithuania must reach full division-related and other critical infrastructure capabilities by 2030, not “sometime in the distant future.” The President maintained that there are no plans to raise taxes in order to meet the military spending targets. Instead, Nauseda said, the increase will be covered by borrowing and cutting public spending elsewhere.

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