The Hague – NATO leaders have agreed to a landmark increase in the alliance’s defense spending target, aiming for members to dedicate 5% of their gross domestic product (GDP) to defense by 2035. The ambitious new goal, announced at a leaders’ summit in The Hague on Wednesday, represents a significant escalation from the previous 2% target and would necessitate many member nations more than doubling their current military budgets.
The new commitment, championed by NATO’s new Secretary General Mark Rutte, comes in response to heightened security concerns following Russia’s ongoing war in Ukraine and persistent pressure from the United States for a more equitable sharing of the security burden. The 5% target is broken down into two components: 3.5% for “core defense” expenditures, such as personnel, equipment, and operations, and an additional 1.5% for “defense- and security-related spending,” which could include investments in critical infrastructure, cybersecurity, and support for the defense industry.
For many of the 32 member states, reaching this new benchmark will be a monumental task, requiring sustained political will and significant budgetary reallocations. Charts and recent data on defense spending starkly illustrate the challenge ahead.
In 2024, it is estimated that only a minority of allies met the existing 2% of GDP target. Poland has emerged as a leader in defense spending, allocating over 4% of its GDP to its military. The United States, the alliance’s largest economy, spends around 3.5% of its GDP on defense. However, many other European allies and Canada have historically lagged.
For instance, countries like Spain, Belgium, and Luxembourg have consistently spent well below the 2% threshold, with their contributions hovering around 1.2% to 1.5% of their respective GDPs. To meet the new 5% target, these nations would need to more than triple their current defense outlays over the next decade. Even for countries that have recently increased their spending to meet or exceed the 2% goal, such as Germany and the United Kingdom, a further substantial increase will be required.
A Decade of Shifting Priorities
The 2% of GDP guideline was first pledged at a NATO summit in Wales in 2014, following Russia’s annexation of Crimea. In the decade since, there has been a notable, albeit uneven, increase in defense spending across the alliance. The full-scale invasion of Ukraine in 2022 served as a further catalyst, prompting several nations to accelerate their investment in their armed forces.
However, the leap from 2% to 5% is of a different magnitude. Proponents of the new target argue it is a necessary adaptation to a more dangerous world, ensuring NATO can credibly deter and defend against any aggressor.
In his address at the summit, Secretary General Mark Rutte emphasized the need for a “stronger and more capable” alliance. “Our security environment has fundamentally changed, and our commitment to our collective defense must reflect that new reality,” he stated.
The decision has not been without its critics. Some officials have privately expressed concerns about the feasibility and economic impact of such a dramatic increase in military spending, particularly at a time of competing domestic priorities. Nevertheless, the agreement signals a clear and united resolve among NATO leaders to bolster their collective defense in the face of evolving threats. The coming years will reveal how this ambitious financial commitment translates into tangible military capabilities across the alliance.