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NATO Agrees to 5% GDP Defense Spending Target by 2035 as Spain Opts Out

It reflects US demands to bolster Europe’s defenses against Russia, with its implementation to be reviewed in 2029.

Demonstrators hold signs against a war in Iran, during a march against the upcoming NATO leaders' summit, at The Hague, Netherlands, June 22, 2025. REUTERS/Piroschka van de Wouw
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FILE - U.S. President Donald Trump addresses a news conference after a summit of heads of state and government at NATO headquarters in Brussels on Thursday, July 12, 2018.

Overview

  • Allies committed to reach a 5% of GDP defense spending goal by 2035, allocating 3.5% to core military needs and 1.5% to security-related projects.
  • Spain secured an exemption from the new pledge and plans to spend just 2.1% of GDP on defense under its own sovereign path.
  • President Donald Trump pressed NATO colleagues to boost budgets but refused to bind the US to the 3.5% core defense threshold, citing its disproportionate burden.
  • NATO diplomats confirmed a formal review of the defense investment plan is scheduled for 2029 to assess progress and feasibility.
  • The agreement follows recent US strikes on Iranian nuclear facilities and comes as the alliance weighs annual cost increases up to $60 billion for major European economies.