European defence financing issues at Eurogroup and ECOFIN meetings
On 10-12 April, Minister of Finance Rimantas Šadžius will participate in the meetings of the Eurogroup (EG) and the European Union (EU) Council of Ministers for Economic and Financial Affairs (ECOFIN) in Warsaw. The meetings will focus on defence and security financing issues, as well as the economic situation in response to the US tariff policy.
“In the context of extraordinary geopolitical challenges, Europe must take greater responsibility for its security. The package of proposals submitted by the European Commission on strengthening European defence financing – including the establishment of a new EUR 150 billion EU-level fund and more flexible application of fiscal rules to defence investments – is a serious step in a positive direction, which will contribute to strengthening the defence of Lithuania and the whole of Europe. At present, priority must be given to the rapid implementation of these proposals,” Minister of Finance Rimantas Šadžius stressed.
At an informal Eurogroup meeting on Friday, ministers will discuss preparations for the World Bank and International Monetary Fund (IMF) meetings to be held in Washington at the end of April, analyse the development of the world economy and the prospects and risks related to the US customs policy for the European and global economies.
On Saturday, the informal ECOFIN meeting will host a discussion on innovative solutions for defence financing, initiated by the current Polish Presidency of the Council of the EU. It is emphasized that the European defence market is too fragmented, which hinders the efficient use of resources due to the lack of economies of scale. The proposals already submitted by the European Commission are focused on solving these problems, but various new ideas are currently emerging among countries on how to go even further - both by increasing defence financing and by strengthening the common market for the defence industry. These ideas will be discussed during the informal ministerial discussion.
“From Lithuania’s perspective, we are open to new proposals in the field of defence financing, but we emphasize that it is necessary to ensure broad participation of like-minded partners in all initiatives. It is also important that the proposed solutions respond to the interests of the countries of Northern, Baltic and Eastern Europe, since it is these countries that have increased their defence budgets the most in recent years, making a significant contribution to the security of all of Europe,” R. Šadžius emphasized.
During the visit to Poland on 10-12 April, bilateral meetings will also be held with the Ministers of Finance of Austria, Malta, Cyprus and Belgium.
Last updated: 17-04-2025
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