T. Valys in a discussion with M. Rutte: "Europe needs to strengthen joint defence acquisitions and ensure sustainable financing"
At today's inclusive-format meeting of the Eurogroup (EG) in Brussels, Minister of Finance Taurimas Valys participated in a discussion with NATO Secretary General Mark Rutte. The discussion raised issues of defence financing, development of the European defence industry, more efficient use of defence spending and ensuring joint procurement and long-term financing of increasing defence spending.
"This year, Lithuania spent 5.38% of GDP on defence, and next year we plan to spend 5% of GDP on defence. This is a huge commitment to our country, however, Lithuania sees defence funding not as a percentage race, but as an investment in real security. We understand that security cannot be postponed for the future", T. Valys stressed in the discussion.
The Minister of Finance also reminded that Lithuania's geographical location determines a special responsibility in strengthening the eastern flank of NATO, so this must be a common concern of the EU. “We need to ensure that security investments turn into real defence capabilities, stronger NATO eastern flank and credible deterrence. At the same time, we need to find ways to maintain this level of financing for a long time without compromising economic growth and the sustainability of public finances. Joint defence acquisitions could also contribute to this", T. Valys noted.
In the discussion, finance ministers, together with NATO's Secretary General, agreed that the increase in defence spending should continue alongside improvements in its efficiency and effectiveness. Support for and partnership with Ukraine was also highlighted as an integral part of the European defence architecture. Participants in the discussion drew attention to the competing spending priorities of European countries and the shrinking fiscal space.
According to the Minister of Finance, Member States will have to gradually reconsider their budget spending priorities and ensure sustainable financing of structurally higher defence spending. It is important to ensure adequate defence funding, balancing with other priorities, long-term economic competitiveness and broader economic impact. It is also necessary to continue the implementation of EU defence instruments and initiatives such as SAFE, EDPCI (European Defence Projects of Common Interest) and to work towards their continuation in the next Multiannual Financial Framework (MFF).
"Lithuania understands that defence funding is a long-term priority for the EU Member States in view of Europe's growing defence needs, especially for the EU's eastern border countries, therefore, defence and security, including comprehensive support for Ukraine, will be one of the main priorities of the Lithuanian Presidency of the Council of the EU," T. Valys reminded.
Last updated: 09-11-2026
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