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Lithuania, Estonia pledge 5% defense spending, following Trump's call, FT reports

by Tim Zadorozhnyy January 27, 2025 7:22 PM 2 min read
Donald Trump, then-Republican presidential nominee, arrives at a town hall campaign event at the Lancaster County Convention Center in Lancaster, Pennsylvania, U.S. on Oct. 20, 2024. (Win McNamee / Getty Images)
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Lithuania and Estonia have become the first NATO members to meet U.S. President Donald Trump's call to raise defense spending to more than 5% of GDP, Financial Times reported on Jan. 27.

Trump reiterated his demand on Jan. 7, urging NATO allies to increase their defense contributions beyond the current 2% benchmark, citing the need for Europe to take greater responsibility for its security amid Russia's ongoing full-scale war in Ukraine.

Lithuania's Foreign Minister Kestutis Budrys, reportedly described the shift as part of a "new era," with Vilnius committing to spending between 5% and 6% of its GDP on defense annually until at least 2030.

Estonia followed suit, with Prime Minister Kristen Michal pledging to raise defense spending from 3.7% of GDP to 5%.

This would put the Baltic nations well ahead of most NATO members and even the United States, which allocated 3.38% of its GDP to defense in 2024.

In July, Poland's Foreign Minister Radoslaw Sikorski said his country would spend 5% of its GDP on defense in 2025, becoming the first NATO country to do so.

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The announcements come as NATO members debate raising the alliance-wide defense spending target to 3% of GDP by 2030, still below Trump's proposed 5% benchmark.

While 24 member states met the current 2% target in 2024, several, including Italy, Canada, and Spain, remain below this threshold. Poland led NATO in defense spending last year, allocating 4.12% of GDP, followed by Estonia and the U.S.

Trump's pressure on NATO allies to increase defense budgets reflects his long-standing criticism of what he perceives as Europe's reliance on American security guarantees.

His remarks in February 2024 — threatening to let Russia "do whatever the hell they want" to NATO members failing to meet spending criteria — sparked international outrage, raising concerns about his commitment to the alliance's collective defense principle.

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