The Lithuanian parliament has recently agreed to allocate at least 3% of their country’s Gross Domestic Product (GDP) for defense from the year 2025 onwards. However, there has been a public initiative in Lithuania, supported by most of the residents as well as by most business and high tech companies, which calls for earmarking at least 4% of GDP for defense. How do Lithuanian politicians view this public sentiment? To know more, TVP World hosted Lukas Savickas, a Lithuanian Member of Parliament.
Referring to this public movement calling for an increase in defense spending, our guest said “This is actually a great moment as the current ruling coalition…is really struck in the process of filing the necessary agreements in order to …further increase funding for defense.”
He highlighted that it is a remarkably positive development that the country’s biggest technological and production companies have “stepped up, united together under one umbrella, and put forward a public campaign suggesting that 4% of GDP should be assigned to the defense area.”
He said that this sentiment indicates that “enough is enough,” and that “the current ruling coalition needs to step up a gear and make sure that all the necessary decisions are made in order to ensure that our defense forces are ready for whatever is necessary to be ready for.”
How will the gov’t meet the 4% target?
It is worth noting that at the moment Lithuania allocates about 2.7% of its GDP for defense, which amounts to spending around EUR 2.1 billion. Increasing the allocation to 4% would mean spending an additional EUR 1 bn. So, how will the government manage to achieve this target?
He highlighted that it is a remarkably positive development that the country’s biggest technological and production companies have “stepped up, united together under one umbrella, and put forward a public campaign suggesting that 4% of GDP should be assigned to the defense area.”
He said that this sentiment indicates that “enough is enough,” and that “the current ruling coalition needs to step up a gear and make sure that all the necessary decisions are made in order to ensure that our defense forces are ready for whatever is necessary to be ready for.”
How will the gov’t meet the 4% target?
It is worth noting that at the moment Lithuania allocates about 2.7% of its GDP for defense, which amounts to spending around EUR 2.1 billion. Increasing the allocation to 4% would mean spending an additional EUR 1 bn. So, how will the government manage to achieve this target?
Savickas said that “it is something which is now in discussion between all parliamentary parties,” and also trade unions and business corporations.
He said that the government has put forward four possible scenarios in order to meet this goal, including introducing tax changes in order to increase the funding. “At the moment, the process is struck in the tripartite council which unites all the three sides to discuss,” he added.
He said that most business and high tech companies in Lithuania have already given a nod to the government that they are willing to accept higher taxes in order to ensure that all funding decisions are made as soon as possible.
4% initiative
According to a survey conducted by the market research company “Norstat LT” in February, 57% of Lithuanian residents believe that their country should allocate at least 4% of GDP for defense purposes.
The civic-minded Lithuanian businesses and organizations have also joined this 4% initiative including the association “Unicorns Lithuania,” the Lithuanian Business Confederation (LVK) and the Lithuanian Confederation of Industrialists (LPK).
He said that the government has put forward four possible scenarios in order to meet this goal, including introducing tax changes in order to increase the funding. “At the moment, the process is struck in the tripartite council which unites all the three sides to discuss,” he added.
He said that most business and high tech companies in Lithuania have already given a nod to the government that they are willing to accept higher taxes in order to ensure that all funding decisions are made as soon as possible.
4% initiative
According to a survey conducted by the market research company “Norstat LT” in February, 57% of Lithuanian residents believe that their country should allocate at least 4% of GDP for defense purposes.
The civic-minded Lithuanian businesses and organizations have also joined this 4% initiative including the association “Unicorns Lithuania,” the Lithuanian Business Confederation (LVK) and the Lithuanian Confederation of Industrialists (LPK).
Source: TVP World
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