Baltic States Asked for €500 Million for Counter-Drone Defence, but the European Commission Won't Provide Extra Funds

Latvia, Lithuania and Estonia have asked the European Commission, the executive body of the European Union, for €500 million to build a joint counter-drone defence system. The Commission has not approved extra funding, so the Baltic states must look for other sources of money. The Ukrainian outlet The New Voice of Ukraine reported this, citing the Lithuanian public broadcaster LRT.

What the Baltic states requested

The defence ministers of the three countries sent a letter to the Commission at the end of September, asking for urgent financial support. The plan is to combine drone detection and interception technologies in a single system that uses artificial intelligence.

Lithuanian Defence Minister Robertas Kaunas has said such a solution would matter not only for the Baltic states but for the whole of Europe.

The Commission's answer

The Baltic states had hoped to receive additional funding by the end of 2026. However, EU Commissioner for Defence and Space Andrius Kubilius has stated that the Commission cannot grant the requested extra €500 million.

Instead, the countries were offered the SAFE programme. This is an EU financial instrument worth €150 billion, providing long-term loans to strengthen defence capabilities and the defence industry.

Part of the money for counter-drone measures could possibly be sought from the Integrated Border Management Fund as well. However, the amounts available there would be much smaller than the €500 million requested.

Financing of the joint counter-drone system therefore remains an open question: SAFE loans are possible, but they are not the additional grant the countries asked for.