Lithuania’s president suggested the Baltic nation could tap its foreign currency reserves to fund a boost in defense spending to more than 5% of economic output.

Lithuania established its 1st Division during a ceremony in Rukla on 28 January. The formation will consist of the Lithuanian ...

Lithuania’s reserves — worth about €7.2 billion as of December — can serve their purpose as a liquidity buffer in cases of emergency if they’re used for the nation’s defense, he said.