Can the Baltic states afford more defence?
In view of their proximity to Russia, the Baltic states are seeking to boost their defence capabilities. Estonia is investing in the modernisation of its armed forces, Latvia is expanding its military infrastructure and debating compulsory military service for women. while Lithuania wants to increase defence spending to more than three percent of its gross domestic product. Mixed reactions in the press.
Lithuania needs to do more
Teodoras Žukas, director of the Christian-conservative think tank Institute of European Right (IER), warns in Valstybė of real dangers for the Lithuanian state:
“It's time to take the country's defence seriously. ... In the coming years, Lithuania faces the crucial challenge of fundamentally transforming its defence capabilities and raising them to a higher and more comprehensive level. This includes strengthening the Lithuanian armed forces, creating a functioning defence model, intensifying NATO involvement and cooperating more closely with neighbouring countries. Experts agree that the risk of war on Nato's eastern flank remains high. Russia continues to increase its military capacities and Belarus remains a threat.”
Obsessed with rearmament
Political scientist Kęstutis Girnius sees things getting out of hand. He comments in Delfi:
“Lithuanian politicians are obsessed with weapons, perhaps they even dream about them. They behave as if enemy hordes were already marching on Lithuania, meaning that all its resources must be devoted to its defence. On the other hand, they seem convinced that Lithuania is a prosperous welfare state, a second Luxembourg, and that the requirements of its citizens are so completely fulfilled that they do not need to be given additional funds of any kind. So weapons are the top priority - weapons über alles.”
Cutbacks in other areas needed
Neatkarīgā looks at the situation in Latvia, where the 2025 state budget is currently under discussion:
“The government's priorities are already set: national security and defence. It is unlikely that there will be any deviation from this. ... But if the 'fiscal leeway' is restricted, the next conclusion is obvious: funds will have to be cut somewhere. The only other alternative is raising taxes. ... The entire fiscal policy of Vienotība [the largest governing party] and its predecessors was quite simple from the start. If you need money, you take it from those you can extract it from easily. From the people. From those who will moan for a while but then grit their teeth and bear it.”
A lack of good ideas
The Estonian government plans to introduce new taxes to cover the additional defence costs, among other things. Not a good idea, Postimees puts in:
“The government, which is pushing for fiscal action, still seems to suffer from a lack of good ideas. It is characterised by its inability to think outside the box when it comes to reforming the tax system. First there was the increase in VAT, now there are plans to impose a profit tax on companies. ... But let's not forget that Estonians once regarded the exemption from income tax for undistributed corporate profits as one of the great achievements of their newly regained independence.”