After PM Ruginienė resigned, Social Democrat leader Sinkevičius formed a coalition government in July 2026. The 2027 draft budget keeps defence at about EUR 4.8bn (about 5% of GDP) while raising pensions, widening the deficit to 3.8% of GDP.
What a Korean company can do now
Government · leader
Prime Minister Mindaugas Sinkevičius (since 14 Jul 2026, Social Democrats) / President Gitanas Nausėda
Key national agenda
- Keep defence at 5-6% of GDP (2026-2030), prioritising air defence, counter-drone and the Baltic Defence Line
- Prepare to host the German brigade and build an army division
- Higher pensions and less old-age poverty
- Regional development, shorter hospital waits, free primary-school meals
- Complete Rail Baltica by 2033 and expand the State Road Fund
Government programmes
2027 state budget (draft)EUR 27.9bn expenditure (draft)
Revenue about EUR 22.2bn incl. EU funds, expenditure 27.9bn; general government deficit 3.8% of GDP, debt 48.2%. Approved by government 16 Oct 2026, sent to Seimas
2027 defence budgetOver EUR 4.8bn (draft)
Over EUR 4.8bn (about 5% of GDP), State Defence Fund over EUR 896m; division build-up and German brigade hosting
Rail Baltica, Lithuanian sectionPhase 1 about EUR 5.6bn (1.6bn secured)
Completion targeted for end-2033 (needs government approval). Phase 1 to 2030 about EUR 5.6bn, 1.6bn secured (85% EU). Kaunas-Vilnius about EUR 2.5bn; main works expected from 2028
Pension increase (Sodra)EUR 715m
Average pension up 10.4% to EUR 825/month (895 with full service record); EUR 715m allocated
Harmony Link Lithuania-Poland power interconnectionUnconfirmed
Government announced a new implementation stage on 8 Oct 2026 (details unconfirmed, single source)
Business opportunities
Korean gun-based air-defence and counter-drone systems
🔒 Why-now and buyers — analysis member ₩19,800/mo
Ultrasound and emergency medical equipment tenders
🔒 Why-now and buyers — analysis member ₩19,800/mo
Open this week
Traffic management and e-ticketing systems
Smaller cities are tendering traffic control and e-ticket systems.
Šiauliai, Utena and other municipalities
Rail Baltica construction subcontracting and materials
🔒 Why-now and buyers — analysis member ₩19,800/mo
Free members get a human-reviewed summary by email for up to 3 countries a month (sent within 24h). BUILD members get them all.
Tenders
- Ultrasound scanners (Kupiškis health services project) · Kupiškis District Municipality · Deadline 2026-11-16
- Ambulance vehicles · Emergency Medical Service (GMPT) · Deadline 2026-11-16
- Medical equipment for admissions and emergency department · Jonava Hospital · Deadline 2026-11-17
- Traffic management system and maintenance · UAB Šiaulių šviesa · Deadline 2026-11-16
- Student skills assessment software development and warranty support · National Education Agency · Deadline 2026-11-27
Korean support schemes
- KOTRA government-to-government (G2G) and market support · KOTRA — KOTRA acts as the contracting party in G2G defence exports (e.g., Estonia's Chunmoo deal). The KOTRA office covering the Baltics/Slovenia was not confirmed in this review.
- SME Export Voucher · KOSME / KOTRA — General voucher scheme for certification, marketing and consulting costs; usable to prepare for EU public procurement (e.g., CE marking).
- K-SURE short-term export credit insurance · K-SURE — General cover for non-payment risk on EU buyers.
Official notices
Government of the Republic of Lithuania
- 2026-10-16 Government approved 2027 draft budget with defence at about 5% of GDP
- 2026-10-12 PM at Warsaw Security Forum on the region's role in European security
- 2026-10-08 New stage announced for the Harmony Link project
- 2026-10-07 PM Sinkevičius and German minister Pistorius discussed the German brigade
Disaster · conflict · epidemic
Stable 2026-11-07
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Earth & space
Credit rating · FX
S&P A / Moody's A2 / Fitch A+ (all stable) · K-SURE Unconfirmed · EUR +0.1%
Sanctions
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An EU and NATO member, not subject to country-level sanctions.
Sources
- LRT - Lithuania's 2027 budget: 5% for defence, growing deficit
- LRT - Seimas approves Sinkevičius government programme
- LRT - Lithuania aims to complete Rail Baltica by 2033
- Ministry of Finance - credit rating assessments
- The Defense Post - Lithuania eyes South Korean air defense
- Government of Lithuania - News
