News2025.09.10 09:34

EU Commission approves €6.3 billion for Lithuania in tentative defence fund

BNS 2025.09.10 09:34

The European Commission on Tuesday adopted a tentative allocation of €150 billion in financial assistance to strengthen defence readiness across the European Union, including more than €6.3 billion earmarked for Lithuania.

The funding comes under the Security Action for Europe (SAFE) program, aimed at bolstering the EU’s defence capabilities, closing critical gaps and coordinating joint purchases of defence products.

“This major step […] is designed to boost the EU’s defence capabilities and help member states address critical gaps, as well as to purchase defence products together,” the Commission said in a statement.

Lithuania had sought up to €8 billion in loans from the program. Member states must now prepare national investment plans by the end of November detailing how they intend to use the assistance. The Commission will review the plans, with the first disbursements expected in early 2026.

“Today’s decision demonstrates the European Union’s commitment to defence cooperation and its determination to invest in a more secure future,” said Henna Virkkunen, executive vice president for Tech Sovereignty, Security and Democracy.

Andrius Kubilius, the EU commissioner for defence and space, said the funding would “help deter our enemies and strengthen European defence”. He added that the Commission would work with member states to ensure the money improves interoperability, develops Europe’s defence industrial base and strengthens collective defence.

Lithuania’s plans

Lithuania’s Defence Ministry said it intends to use SAFE funds to accelerate the development of its Land Forces division, strengthen the Baltic Defence Line with counter-mobility measures and mines, and maintain and expand other military forces.

Part of the funding will also go to supporting Ukraine through joint purchases, acquisitions of military equipment from Ukrainian or EU suppliers, and other measures.

“New NATO commitments require not only the largest investments in the development of our capabilities, but also their faster preparation,” Deputy Defence Minister Karolis Aleksa said. He added that Lithuania’s primary goal is to fully develop its Land Force division by 2030 with combat, support and logistics systems and ammunition reserves.

The SAFE program, adopted by the EU Council in May 2025, has attracted interest from 19 member states, exceeding the available budget. It will provide long-term, low-cost loans with a 10-year grace period and competitive interest rates. The program also allows for bilateral agreements with third countries and includes Ukraine’s defence industry from the outset.

Lithuania previously said it was seeking between €5 billion and €8.76 billion in loans. President Gitanas Nausėda noted in September that €7 billion would be used to establish and develop a military division, while €1 billion would be directed toward bolstering border defences with Russia and Belarus.

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