Overview

• NATO splits its new 5% of GDP spending commitment into 3.5% for military outlays and 1.5% for defense-relevant infrastructure to meet stepped-up capability goals
• Germany will raise its defense budget from about €90 billion last year to €153 billion by 2029, reaching 3.5% of GDP in line with its national timetable
• The pledge is politically binding only and enforcement will rely on annual compliance reports to generate internal pressure rather than legal sanctions
• The framework aims to boost NATO’s air defense, long-range strike capabilities, logistics networks and land formations to close current operational gaps
• Alliance members spent $1.506 trillion on defense in 2024, accounting for 55% of global military expenditures, with the United States alone contributing $997 billion