VILNIUS, Lithuania: Lithuania plans to dramatically increase defense spending to 5-6 percent of its GDP by 2026, citing the persistent threat of Russian aggression, President Gitanas Nauseda announced on January 17.

The move would make Lithuania the first NATO nation to commit to a 5 percent defense spending target advocated by U.S. President-elect Donald Trump.

"The possibility of Russian military aggression is still real, but not imminent," Nauseda said, calling the decision a "historic step" taken during a State Defense Council meeting in Vilnius. "We need to increase our efforts to strengthen defense and deterrence significantly, devoting more resources to this end."

Currently allocating just over 3 percent of its GDP to defense, Lithuania is preparing for significant adjustments amid growing concerns in Europe over Russia's invasion of Ukraine and NATO's future under the Trump administration. Trump has questioned NATO's value, criticized member countries for failing to meet spending targets, and proposed the ambitious 5 percent benchmark for military investment.

"Our security is also assured by our membership in the NATO alliance, but it will only be effective if we are prepared to defend ourselves," Nauseda emphasized. To finance this boost, Lithuania plans to increase its international borrowing limit.

Reaching the 5 percent target would place Lithuania at the forefront of NATO defense spending, surpassing Poland, which currently spends over 4 percent. Nauseda's announcement reflects a broader effort by NATO's eastern members to bolster defenses, especially in light of Russia's ongoing war in Ukraine.

"From a European perspective, it makes sense for the Baltics to invest more because they are the front line," said Guntram Wolff of the Bruegel think tank in Brussels.

While some NATO countries face constraints, such as Germany's constitutional borrowing limits and France's high debt-to-GDP ratio, Lithuania's recent economic growth offers it greater borrowing capacity.

Margarita Seselgyte, director of the Institute of International Relations and Political Science in Vilnius, described the increased spending as essential. "We are a front-line state and should act like one. The war is ongoing, and Russia's military production is functioning at full capacity," she said.

Although Seselgyte acknowledged the financial strain of such investments, she argued that Lithuania's current economic strength provides an opportunity to act decisively. "The economy of a democratic country cannot function in such a regime for long periods, but right now we need a burst of initiatives and investments," she said in conclusion.