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American Focus > Blog > Economy > North American and European leaders agree on 5% defence spending target
Economy

North American and European leaders agree on 5% defence spending target

Last updated: June 25, 2025 6:35 am
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North American and European leaders agree on 5% defence spending target
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NATO’s 32 members have made a significant commitment to increase defense spending to 5% of GDP in order to secure protection from the United States. This decision was announced during a summit in The Hague, where the allies also reaffirmed their dedication to collective defense.

The joint statement released by the alliance outlined a plan to reach the 5% spending goal, with annual plans demonstrating a credible and incremental path towards this target. A review of the spending goal is set to take place in 2029, ensuring that progress is monitored and evaluated.

NATO Secretary-General Mark Rutte strategically kept the statement concise, with only five paragraphs in order to maintain President Donald Trump’s attention. Previous summit communiqués have been lengthy, with the last two being 44 and 90 paragraphs long. This streamlined approach was aimed at addressing Trump’s concerns about European allies relying too heavily on US defense spending.

The statement emphasized the commitment to invest 5% of GDP annually on core defense requirements and security-related spending by 2035. This pledge was in direct response to Trump’s criticism of European allies not meeting their defense spending obligations.

During the summit, Trump expressed his support for NATO’s mutual defense pact, known as Article 5, stating that he stands with the alliance and highlighting the importance of collective security.

While the statement acknowledged the long-term threat posed by Russia to Euro-Atlantic security and reiterated commitments to support Ukraine, Trump’s stance on Russia remains cautious. He has been hesitant to label Russia as an adversary and has shown lukewarm support for Ukraine.

See also  Ken Griffin says Trump's 'bombastic' trade rhetoric is a mistake that's eroding trust in the U.S.

The wording of the statement, using “allies agree” instead of “we agree,” was a point of contention with Spain, who argued that they could meet NATO’s military capabilities requirements without reaching the 5% spending target.

Overall, NATO’s commitment to increasing defense spending demonstrates a unified effort to strengthen the alliance and ensure security in the face of evolving security threats. This decision will shape the future of NATO’s defense capabilities and reinforce the alliance’s collective defense posture.

TAGGED:AgreeAmericandefenceEuropeanleadersNorthspendingTarget
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