Vilnius requests Brussels not to count extra military funds toward deficit

Lithuania has formally requested the European Commission not to count an additional 1.5% of GDP earmarked for defence spending as part of the national budget deficit.

The appeal was submitted in a letter signed by Finance Minister Rimantas Šadžius, according to Tadas Vinokuras, an adviser to Prime Minister Ingrida Šimonytė, Caliber.Az reports, citing Russian media.

"The European Commission has received a letter signed by Minister Šadžius requesting that the 1.5% of GDP to be allocated additionally to defence between 2025 and 2028 not be included in the government’s deficit figures, in accordance with the exemption mechanism provided by the Commission," Vinokuras told reporters.

Under the Maastricht criteria, eurozone countries are expected to maintain a government debt level no higher than 60% of GDP and keep annual budget deficits below 3% of GDP. However, due to rising defence expenditures across member states, the Commission has allowed temporary exemptions from these rules in the coming years.

Lithuania’s State Defence Council, chaired by President Gitanas Nausėda, decided in January 2025 that from 2026 to 2030, the country should allocate between 5% and 6% of GDP to defence annually. This marks a significant increase in spending as regional tensions and global security threats continue to influence national defence strategies.

In the 2025 national budget, Lithuania allocated a record €2.5 billion for defence, amounting to 3.03% of GDP—an increase from 2.75% in 2024. Additionally, the government raised the borrowing limit by €800 million, enabling further financing for defence needs. As a result, actual defence spending could reach 3.5% to 4.0% of GDP in 2025, and rise to 5.25% by 2026.

By Tamilla Hasanova