Overview

• NATO’s 32 allies pledged on June 25 in The Hague to raise defense spending to 5% of GDP by 2035, allocating 3.5% for core military needs and 1.5% for infrastructure, cyber defense and civilian preparedness.
• The decision marks a significant diplomatic victory for President Donald Trump, who used the leverage of U.S. military support to extract deeper contributions from European partners.
• Germany committed to boost its defense budget from 2.4% in 2025 to 3.5% of GDP by 2029, suspending its debt brake and earmarking about €153 billion to underpin its rearmament drive.
• Several members, including Spain, warn that meeting the new goal will require cuts to social and environmental programs or major fiscal reforms, and NATO will review progress in 2029.
• The final declaration reaffirmed NATO’s Article 5 collective defense guarantee but offered no new pathway for Ukraine’s membership, leaving Kyiv without clear alliance assurances.