Estonia’s incoming ruling coalition has agreed to implement budget cuts across all ministries, including defence and interior affairs, ERR reports. Margus Tsahkna, chairman of Estonia 200, said that each ministry would likely face a percentage-based cut to salaries and management costs, and that no new jobs would be created. The coalition plans to extend the…
NATO allies agree that the Supreme Allied Commander Europe (SACEUR) should manage the rotation of air-defence systems in the Baltic region, Lithuanian President Gitanas Nauseda stated, BNS reports. He said that political leaders of individual countries need not travel to different capitals and request anti-air defence systems. The NATO summit in Vilnius agreed in 2023…
Lithuanian President Gitanas Nauseda has formally proposed that the parliament, the Seimas, denounce the Convention on Cluster Munitions, BNS reports. The Office of the President argued that current international legal restrictions limited Lithuania’s defence capabilities and reduced the effectiveness of deterrence. Lithuania and Norway are the only NATO member states sharing a border with Russia…
Lithuania will begin issuing defence bonds after 1 October 2024, Finance Minister Gintare Skaiste announced, BNS reports. The defence bonds will have a maximum interest rate of 2%, which is lower than on savings certificates. The lower rate will ensure that the state borrows for defence at a rate that is cheaper than the market…
The Lithuanian government plans to invest around EUR 17.56mn in counter-mobility measures over 2024-2027, the Ministry of Defence announced, BNS reports. The plan is to deploy counter-mobility defence installations along the border with Belarus and Russia’s Kaliningrad (Königsberg) region by April 2025, reserve barriers on major national roads and bridges by November 2025, and drainage…
Lithuania’s central bank, the Bank of Lithuania, has proposed a comprehensive review of existing tax exemptions, income and wealth taxation, and reducing the VAT gap to increase budget revenue as the population ages, BNS reports. Vaidotas Tuzikas, principal economist at the Bank of Lithuania, noted that Lithuania’s ratio of tax collection to GDP of 4.5%…
Estonia’s primary goals at the NATO summit in Washington include increasing defence spending, closing capability gaps, and maintaining a focus on the threat from Russia, ERR reports. Estonia is pushing for investments in critical defence capabilities such as air defence and ammunition. Estonia supports raising the defence spending target to 2.5-3% of GDP. Additionally, Estonia…
Baltic leaders reacted strongly to Russia’s massive missile attacks across Ukraine, including against a children’s hospital in Kyiv, on 8 July 2024. Lithuanian President Gitanas Nauseda stated that there was “no line Russian terrorists would not cross.” Estonian Foreign Minister Margus Tsahkna said that Russia was a terrorist state with whom negotiations were impossible. Estonian…
Lithuania will buy mobile short-range air defence systems from Sweden’s Saab Dynamics for EUR 147mn, the Ministry of Defence announced, BNS reports. The ministry’s Defence Materiel Agency (GRA) has signed a contract on buying the RBS70 NG (MSHORAD) systems, with delivery scheduled for 2025-2027. Defence Minister Laurynas Kasciunas said that the advantage of the systems…