Lithuania will seek European funding to surpass Poland as NATO’s highest defence spender by percentage of GDP.

Lithuania has pledged to allocate between 5% and 6% of GDP for defence spending from 2026 until 2030, pointing to the threat of Russian military aggression as the full-scale conflict with Ukraine nears the three-year mark.

The State Defence Council (VGT), made up of Lithuania’s top political and military brass, announced the hike in funding after a meeting on 17 January. Newly inaugurated Prime Minister Gitanas Nausėda said Lithuania would “lead by example” and the funds would “create a fully capable division by 2030 and enhance our national defence capabilities”.

Once implemented, Lithuania will become NATO’s highest defence spender in percentage of GDP terms, surpassing Poland (4.7%) and the US (3.5%).

Lithuania’s original state budget for 2025 earmarked EUR2.5 billion for defence – slightly more than 3% of GDP. However, Lithuania’s new government increased the borrowing limit by EUR800 million after taking office in December, which could raise defence spending to 4% of GDP.

Lithuania's Ministry of National Defence had not responded to DSEI’s request for comment at the time of publication.