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NATO Agrees to 5% GDP Defense Spending Goal; Spain Stands Apart

Implementation will test EU budget rules through 2035 with interim reporting by 2029 under Trump’s defense spending model.

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Overview

  • The Hague declaration commits allies to devote 3.5% of GDP to conventional military forces and 1.5% to broader security investments by 2035.
  • Spain refused to join the 5% target, opting instead to hold defense outlays at 2.1% of GDP.
  • President Trump played a central role in clinching the agreement and introduced a “Golden Dome Shield” missile defense system claimed to intercept 97% of incoming threats.
  • The final communiqué omits any explicit condemnation of Russia’s invasion of Ukraine, reflecting a more moderate tone shaped by U.S. influence.
  • All members must submit annual plans outlining credible paths to the 5% goal, with a formal progress review scheduled for 2029.