Lithuanian PM set to meet with EC president this weekend

  • 2025-02-04
  • BNS/TBT Staff

VILNIUS - Lithuanian Prime Minister Gintautas Paluckas is scheduled to meet with European Commission President Ursula von der Leyen on Sunday.

"The situation is serious and the task is difficult. I had a conversation with EU Vice President (Valdis - BNS) Dombrovskis and on Sunday we will probably meet with President von der Layen," the prime minister told members of the opposition conservative Homeland Union - Lithuanian Christian Democrats political group in the Seimas when asked by his predecessor Ingrida Simonyte when his government would have a medium-term financial program.

"We will talk about that medium-term fiscal structural plan that will also reflect certain planned state commitments. And the European Commission is well aware that in that medium-term period, the national deficit rule is likely to be interpreted in a broader way in view of defense needs," Paluckas noted, adding that, in the short term, public debt would in any case grow.

"It would grow even without an increase in defense funding, but economic growth and certain tax corrections that will come will reduce the current natural deficit to some extent," the prime minister said.

"It would be a serious challenge for any government, right or left, to generate so much money in such a short period of time without sacrificing the availability or quality of public services," Paluckas added.

Lithuania needs additional sources of funding after the country's State Defense set in January a target of allocating 5-6 percent of GDP to national defense in 2026-2030 as the country wants to set up a national division within its army.

Lithuania's leaders expect bulk of the necessary funds can be secured under a common EU borrowing mechanism. The goal is also to secure the European Commission's permission to breach fiscal discipline if member states borrow independently for national defense.