Two NATO countries agree to reach 5% defense spending target

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After Political pressure from the USA by President Trump, 2 NATO member countries Lithuania and Estonia,  have pledged to reach 5% defense spending, Financial Times reports.

Lithuania plans to allocate 5-6% of its GDP to defense starting next year and at least until 2030, doubling its current spending levels.

“Of course, there’s pressure (from the US – ed.), and it’s good and constructive pressure from our strategic and biggest ally in NATO. We cannot ignore those messages. But it’s not the sole reason . . . It is existential for us to have real war-fighting capabilities here,” said Kęstutis Budrys, head of Lithuania’s Ministry of Foreign Affairs.

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Estonian government head Kristen Michal stated that his country also plans to allocate 5% of GDP to defense. He called the US a key security partner and emphasized that NATO defense spending must increase.

“We know our opponent, and I fully agree – our goal should be 5%,” he added.

Increase in NATO defense spending

US President Donald Trump has repeatedly urged NATO member states to boost their defense spending. Last year, he even threatened to encourage Russia to do whatever it wants with NATO members that failed to meet their financial obligations to the Alliance.

In December 2024, Trump stated that the US might withdraw from NATO if allies did not agree to increase their defense budgets.

In January, the President called on Alliance members to raise their defense spending to 5% of GDP.

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