Baltic States Warn of Unfunded Debt for Europe’s Defense Splurge

Officials on Europe’s eastern flank urged lawmakers to find sustainable sources of revenue to finance a massive surge in defense spending and avoid growing government borrowing across the continent.

Madis Muller, Estonia’s outgoing rate hawk on the European Central Bank’s Governing Council, said that increasing the budget deficit to compensate was not a long-term solution, warning in a speech in his nation’s parliament on Thursday that “these higher defense expenditures are not temporary.”