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3w ago

NATO Endorses 5% GDP Defense Spending Target Despite Spanish Opt-Out

Experts warn success now depends on accelerated U.S. arms production to equip allies for expanded defense roles.

Russian soldiers march during the Victory Day military parade dress rehearsal, in Moscow, Russia, May 5, 2024 (AP photo by Alexander Zemlianichenko).
(From left) North Atlantic Treaty Organization (NATO) Secretary General Mark Rutte, U.S. President Donald Trump, Britain's Prime Minister Keir Starmer, and Turkey's President Recep Tayyip Erdoğan gather with NATO country leaders for a photo during the NATO heads of state and government summit on June 25, 2025, in The Hague, Netherlands.
THE HAGUE, NETHERLANDS - JUNE 25: U.S. President Donald Trump (R) and NATO Secretary General Mark Rutte speak to media at the start of the second day of the 2025 NATO Summit on June 25, 2025 in The Hague, Netherlands. Among other matters, members are to approve a new defense investment plan that raises the target for defense spending to 5% of GDP. (Photo by Andrew Harnik/Getty Images)
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Overview

  • At the June 24 summit in The Hague, NATO members endorsed a commitment to raise defense spending from the current 2% minimum to 5% of GDP by 2035, allocating 3.5% to core capabilities and 1.5% to infrastructure.
  • Spain secured a last-minute exemption capping its defense outlays at 2.1% of GDP, drawing criticism from partners for falling short of the new baseline.
  • President Trump’s threats of trade penalties underpinned a pledge that Secretary General Mark Rutte said would not have happened without U.S. leverage.
  • Officials caution that meeting the target requires faster U.S. arms production, given that U.S. tank output lags far behind Russia’s pace.
  • Calls are growing for streamlined U.S. export licensing to prevent bureaucratic delays from hampering deliveries of critical military equipment to frontline allies.