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
Our news & analysis is now part of Defence Insight®
A Basic-level or higher Defence Insight subscription is now required to view this content.
More from Defence Notes
-
![Eurosatory 2026: Milrem Robotics puts forward multi-layered defence concept for NATO's eastern flank]()
Eurosatory 2026: Milrem Robotics puts forward multi-layered defence concept for NATO's eastern flank
Autonomous systems developer Milrem has evolved a model for an interoperable robotised approach to the Eastern Flank Deterrence Initiative (EFDI), showing how uncrewed systems could provide a multi-layered defence architecture in the air and on land along NATO’s eastern borders.
-
![Agile, sovereign, edge-ready: rewiring defence IT for a contested decade]()
Agile, sovereign, edge-ready: rewiring defence IT for a contested decade
Today's rapidly changing security landscape means that armed forces can no longer treat their data in the same way as in the past. What are the key challenges they face, and how can industry help them?
-
![US lawmakers prepare a historic investment in stockpile replenishment in FY2027]()
US lawmakers prepare a historic investment in stockpile replenishment in FY2027
The House Armed Services Committee recently released the Chairman’s NDAA FY2027 markup, which supports the Pentagon’s request for nearly $90 billion for long-range missiles, air defence interceptors, precision-guided munitions and industrial baseline items.
-
![Six critical capability gaps shaping the US Golden Dome implementation]()
Six critical capability gaps shaping the US Golden Dome implementation
How emerging technologies and capability priorities will shape America’s next-generation missile defence system.
