VILNIUS – European nations must lift restrictions on borrowing for defence if they want to avoid a future conflict with Russia, Lithuanian Defence Minister Dovile Sakaliene warned in an interview with Reuters on Tuesday.
“Defence is no longer just a policy issue — it’s a matter of survival,” Sakaliene said. “Structural reforms won’t matter if our soldiers are left without ammunition.” She emphasized the urgent need for Europe to allocate immediate resources toward strengthening its military readiness.
Lithuania, a member of both NATO and the European Union, shares borders with Russia and its ally Belarus. The country plans to increase its defence budget to 5.5% of GDP next year, up from 3.9% in 2024 — one of the highest commitments in the EU.
Meanwhile, European finance ministers have shown interest in creating a shared EU defence fund to centralize purchases of military equipment. Such a fund could ease debt pressures on countries already heavily indebted, by ensuring the burden doesn’t fall solely on national accounts.
This initiative is part of a broader EU response to potential aggression from Russia, especially as reliance on the United States for security becomes increasingly uncertain. Russia’s defence chief has previously stated that the country should prepare for a possible direct confrontation with NATO within the next decade.
Through the ReArm Europe initiative, the EU is aiming to inject €800 billion ($876 billion) into defence over the next four years by relaxing fiscal constraints and enabling collective borrowing for strategic defence programs.
Sakaliene insisted that the EU must go further — removing all borrowing caps and issuing immediate grants, not just loans, to member states for military upgrades. “We have a narrow window to act and prevent catastrophic loss of life,” she said.
She acknowledged former U.S. President Donald Trump’s criticism of NATO allies that underfund their defence, saying the pressure is understandable. “Europe fell behind for too long — and we’re paying the price now,” Sakaliene noted.
Despite transatlantic tensions, she expressed confidence in U.S. support for NATO’s eastern flank. Countries like Lithuania, Latvia, Estonia, and Poland, which heavily invest in defence and collaborate closely with Washington, can still count on American backing in a crisis.
Looking ahead to the NATO summit in The Hague this June, Sakaliene expressed hope that all member nations will agree to raise their defence spending to at least 4% of GDP in light of the escalating threat from Moscow.