NATO Allies Agree to Raise Defence Spending Target to 5% of GDP by 2035

Wed Jun 25 2025
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KEY POINTS

  • The NATO alliance agreed to increase defence spending from 2% to 5% of GDP.
  • NATO also reaffirmed its commitment to collective defence as enshrined in Article 5.

THE HAGUE, Netherlands: NATO allies on Wednesday agreed to more than double their defence spending target from 2% to 5% of GDP by 2035, marking the alliance’s most significant shift in over a decade.

In a joint declaration, NATO said it remained united in the face of profound security threats, particularly the long-term challenge posed by Russia and the persistent threat of terrorism.

“Allies commit to investing 5% of GDP annually on core defence requirements as well as defence-and security-related spending by 2035 to ensure our individual and collective obligations,” according to the joint declaration.

The 5% figure is made up of “at least” 3.5% of GDP that should be spent on “pure” defence, with the remainder going to security and defence-related “critical infrastructure” to ensure, the statement said, “our civil preparedness and resilience, unleash innovation, and strengthen our defence industrial base.”

Allies will be required to submit annual plans “showing a credible, incremental path to reach this goal,” NATO said, following pushback from some member states, particularly Spain.

Some member states have yet to meet the 2014 target to spend 2% of GDP on defence.

Members have also been pushed to the new target after years of pressure across both terms of US President Donald Trump for Washington’s Canadian and European allies to share more of the burden of collective defence.

The alliance on Wednesday also reaffirmed its “ironclad commitment to collective defence” as enshrined in Article 5 that an attack on one is an attack on all, following question marks over the US′ reliability when it came to that central pillar of NATO.

“We remain united and steadfast in our resolve to protect our one billion citizens, defend the Alliance, and safeguard our freedom and democracy,” the statement read.

Addressing the summit, NATO Secretary General Mark Rutte said the agreement would fuel a “quantum leap” in the alliance’s collective defence.

The deal would “not only increase our security but also create jobs,” Rutte continued, saying allies had made “significant commitments to meet significant threats.”

Allies recognised the severity of the threats facing the alliance, he said, and were “united in understanding that we need to step up to stay safe.”

He said President Trump had emphasised that America is committed to NATO but expects European allies and Canada to contribute more, “and that is exactly what we see them doing,” Rutte said.

 

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