Lithuania presented in Riga a multi-layered defence funding model: from 5.38% GDP to defence bonds for everybody

"The European Union's eastern border countries are currently facing hybrid threats which are not just an impact on the economy," Vice-Minister of Finance Januš Kizenevič stressed at the FinNext 2026 Forum in Riga, where he presented Lithuania's approach to defence funding.

"Countries geographically close to the aggressor are already investing more in defence - Lithuania contributes almost 5.4% GDP for this purpose. However, a combination of national and EU-level measures is needed for the eastern border countries to withstand the increasing burden of defence funding", J. Kizenevič said at the Forum.

The Vice-Minister of Finance underlined that strengthening the EU's eastern borders is a shared European responsibility, and sufficient defence funding requires a combination of efforts at both national and European level. The EU's eastern borders should be a key priority in all future EU financial instruments, including the next Multiannual Financial Framework (MFF), to ensure coherent and long-term investment in security and resilience.

"Better access to funding contributes to strengthening the European defence industry and overall resilience", the Vice-Minister said.

Presenting Lithuania's experience in strengthening security and defence, the Vice-Minister emphasized the importance of international partners and special EU defence funding programmes. Lithuania has received approval from the Council for a loan of almost EUR 6.4 billion under the SAFE programme of the ReArm EU package, while international partners - the European Investment Bank (EIB) and the Nordic Investment Bank (NIB) finance defence projects in Lithuania and provide technical assistance in structuring the public-private partnership (PPP) schemes. These banks have already allocated EUR 1.5 billion to defence projects.

"A number of national decisions have recently been taken to increase defence funding. This includes tax changes adopted last summer and the strengthening of the National Development Bank ILTE, one of the main investment priorities of which is defence, security and energy independence. In addition, every citizen of our country can contribute to the security of Lithuania. The Government introduced measures for citizens and businesses to invest in national security through defence bonds and direct donations", J. Kizenevič said.

Since the beginning of the distribution of defence bonds (in October 2024), 20 issues have already taken place and the amount invested exceeded EUR 307 million, of which more than EUR 90 million this year alone.

"More and more people and businesses are choosing not only to talk about security, but also to make a real contribution to it. At the same time, it is a responsible, safe investment for personal savings and an opportunity to strengthen the citizens' trust by providing them with financial stability and long-term returns," the Vice-Minister concluded.