"Lithuania’s debt to GDP ratio is 38%. It is among the lowest in the EU. If we think that the conditions are indeed exceptional, we do not have to ’burn through’ existing foreign exchange reserves. We can borrow very easily. Especially when we speak about one-off expenses," Mačiulis told the radio station Žinių radijas on Monday.
According to the economist, even if Lithuania were to borrow EUR 5 billion today, her credit rating would not deteriorate as the country’s indebtedness rate would remain below the EU average.
Moreover, the economist says that striving for sustainable defence funding in the future, EU funds could be used and excise duties or pollution taxes may be raised instead of income taxes.
"Having in mind that defending the EU space is a shared interest, joint funds should indeed emerge that would finance joint defence projects," said the economist
According to him, this would also coincide with US President Donald Trump’s call for NATO member states to boost defence spending.
As reported, the State Defence Council recently decided that Lithuania should spend 5-6% of GDP on defence in 2026-2030.