As the ongoing war endures into its fourth year, the Baltic States are significantly increasing their defense budgets, with expectations to reach 5% of GDP. This raise in spending reflects a broader European trend where nations are compelled to prioritize defense in response to perceived threats. However, the article notes that increased funding does not guarantee a proportional burden on the economy, as growing economic conditions might offset potential negatives.

Public support for funding defense through taxes is deeply intertwined with perceptions of real threats. In the Baltic countries, there is a noticeable willingness among citizens to contribute more towards national security. The article underscores the psychological aspect of public finance and defense spending, indicating that the limits of this support are uncertain and largely subjective.

Despite the necessary increase in defense funds, a considerable amount of these resources tends to leave the national economy. The article points out that local economic benefits from increased defense spending could be paltry when much of the funding is directed elsewhere. As the situation evolves, it leaves many questions about the balance between societal needs and security demands unanswered, particularly regarding the longevity and sustainability of such funding and its broader implications for the region's future.