Fiscal reality could challenge Baltic procurement plans
Lithuania procured Boxer 8x8s in the Vilkas programme but it wants to acquire even more IFVs. (Photo: Lithuanian MoD)
Baltic countries are ramping up military spending amid the Russo-Ukrainian conflict but ambitious acquisition plans might bump into economic factors.
The Baltic republics of Estonia, Latvia and Lithuania are following a broader European trend of increased defence expenditure since the unprovoked Russian invasion of Ukraine on 24 February.
Latvia is poised to increase military spending to 2.5% of GDP by 2025 while parliament in neighbouring Lithuania approved a plan to raise defence spending above 2.5% of GDP, compared with 2.05% or €1.2 billion ($1.31 billion) previously.
On 20 January, even before the Russian invasion of Ukraine began, Estonian Prime Minister Kaja Kallas announced that €380 million more will be allocated for defence ‘in the next years’ in order to increase
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