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…
The Baltic States will present a capability development plan at the upcoming NATO summit in Washington, BNS reports. Estonian President Alar Karis emphasised the need for increased defence spending, suggesting a minimum target of 2.5-3% of GDP. Lithuanian President Gitanas Nauseda pointed out that Lithuania’s defence spending has already reached 3% of GDP in 2024….
NATO must be ready for Russia turning even more hostile in the decade to come, Estonian President Alar Karis warned, ERR reports. Speaking after a meeting with Lithuanian President Gitanas Nauseda in Vilnius, Karis said that Russia would remain NATO’s most serious military threat for a very long time. He called on NATO allies to…
Latvian President Edgars Rinkevics called for increased EU defence spending, exempting it from fiscal rules, Kathimerini reports. He emphasised the need for the EU to be more self-reliant in defence and for more coordination in defence matters. During his visit to Athens, Rinkevics discussed with Greek officials boosting economic ties, securing more funding for external…