On July 29, 2025, German Vice Chancellor Lars Klingbeil visited Vilnius, assuring Lithuania, Latvia, and Estonia of Germany's unwavering support amid Russia's expansionist ambitions.

During his visit, Klingbeil announced a significant government decision to exempt defense spending from Germany's debt rules, paving the way for long-term investments in security.

As the security landscape in Europe evolves, he emphasized Germany's commitment to defend freedom and independence, recognizing the Baltic states as vital partners in NATO and the EU.

Klingbeil also highlighted a projected budget shortfall of 172 billion euros between 2027 and 2029, with a notable 34 billion euros deficit anticipated for the 2027 budget.

In discussions about increasing defense spending, Lithuanian Finance Minister Rimantas Šadžius proposed raising corporate and income taxes, a suggestion that Klingbeil found particularly appealing.

He acknowledged the uncertainty surrounding economic recovery, particularly following a recent EU tariff agreement with the USA, which he predicted could negatively impact Germany's economic growth.

Military experts have warned that the situation in Lithuania remains tense, with potential threats to NATO territory from Russia by 2029, especially through the strategic Suwalki Gap.

Both Klingbeil and Šadžius reiterated their ongoing support for Ukraine, committing to assist against Russian aggression through financial, political, and military means.

Prior to Klingbeil's arrival, a drone from Belarus was detected in Lithuanian airspace, underscoring the ongoing security concerns in the region since the onset of Russia's war in Ukraine.

The German government is actively enhancing its security capabilities and discussing EU-level defense financing tools to ensure effective deterrence.

Klingbeil visited the Bundeswehr’s Panzerbrigade 45 in Lithuania, which is set to grow to 4,800 personnel by 2027, integrating with an existing NATO battlegroup established in 2017.

Overall, Klingbeil's visit aimed to strengthen bilateral ties and demonstrate the significance of the Baltic region to Germany's defense strategy.