Lithuania and Estonia pledge to meet Donald Trump’s 5% target on defence spending

Financial Times ^ | January 27 2025 | Richard Milne in Oslo and Marton Dunai in Budapest

[Cronos]

Lithuania and Estonia have responded to “good and constructive pressure” from US President Donald Trump to become the first Nato countries to promise to spend more than 5 per cent of their GDP on defence in a drive to sharply increase military capabilities.

Kęstutis Budrys, Lithuania’s foreign minister, told the Financial Times that Europe was facing a “new era” after the Baltic state, which is next to Russia, said it would spend between 5 per cent and 6 per cent of its GDP on defence from next year until at least 2030. That is about double 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 per cent of GDP for defence spending, up from its current 3.7 per cent, which is itself ahead of US expenditure as a share of its economic output.

He said: “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 per cent.”

Nato is set to increase its informal target for defence spending at its June summit from the current 2 per cent to 3 or 3.5 per cent as it responds to Russia’s full-scale invasion of Ukraine, according to European officials. But Trump told allies he wanted 5 per cent, a figure now endorsed by several frontline Nato countries including Poland, which leads the alliance in spending at more than 4 per cent.