NATO leaders are ready to support an extensive increase in investment in defense at a key summit in The Hague on Wednesday, June 24, and respond to the growing geopolitical tension and direct pressure of US President Donald Trump. The Member State Treaty would commit Member States to spending 5% of its gross domestic product (GDP) for investments related to defense and security by 2035-significant jump from the current 2% benchmark.
What does a new goal mean
The proposed objective of 5% of expenditure will be divided into two parts:
3.5% of GDP for basic defense, including soldiers, weapon systems and combat readiness – from the current 2% focus.
1.5% of GDP for wider safety investment such as cyber defense, improving infrastructure for military mobility and energy security.
This wider definition reflects modern safety challenges, including the need to defend against hybrid threats and protect strategic supply chains.
Why is this a big problem
While 22 out of 32 NATO members are already meeting or exceeding 2% of the defense target, the new 5% threshold is a big jump. In 2024, NATO countries spent 2.61%of GDP on defense, although with wide differences – Poland exceeded 4%, while Spain lagged below 1.3%.
If all members spent 3.5% on the basic defense last year, the total expenditure would exceed $ 1.75 trillion, compared to the $ 1.3 trillion actually spent.
Timeline and reviews
Member States are expected to meet a new goal by 2035, and the review is scheduled for 2029 to evaluate progress and potentially modify expectations.
Why increase?
The decision is powered by a combination:
Russian ongoing war in Ukraine and concerns about the wider military threat in the next five years.
Concerns about the possible drawing of US forces in Europe, especially if Trump returns to the White House.
A wider reassessment of Europe’s ability to defend itself.
“Then he has to prepare for the future in which he has to take more responsibility,” said Secretary General Mark Rutte, pointing to urgent needs in air defense, dances, drones and staff.
Disagreement and logout?
While the agreement seems to have wide support, some nations express reservations. Spanish Prime Minister Pedro Sanchez said Spain will focus only on 2.1% of GDP, although his government has signed on the last communication.
Despite such NATO statements, it insists that there are no logging out and the expenses for national defense will be carefully monitored.
(Tagstotranslate) NATO defense expenses
