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7h ago

NATO Faces Pressure to Commit to 5% Defense Spending Target by 2032

With the upcoming Hague summit, the U.S. demands a 5% GDP defense goal, while NATO leadership proposes a phased increase to balance feasibility and consensus.

Poland's Prime Minister Donald Tusk, center left, is greeted by Netherlands' Prime Minister Dick Schoof, center right, as dozens of World War II veterans gathered for Liberation Day celebrations in Wageningen, Netherlands, Monday, May 5, 2025. (AP Photo/Peter Dejong)
NATO Secretary General Mark Rutte attends a press conference with German Chancellor Friedrich Merz at the alliance's headquarters in Brussels, Belgium, May 9, 2025. REUTERS/Piroschka van de Wouw
Germany's Chancellor Friedrich Merz, left, shakes hands with NATO Secretary General Mark Rutte during a media conferenc6 at NATO headquarters in Brussels, Friday, May 9, 2025. (AP Photo/Virginia Mayo)
Germany's Chancellor Friedrich Merz, left, and NATO Secretary General Mark Rutte address the media at NATO headquarters in Brussels, Friday, May 9, 2025. (AP Photo/Virginia Mayo)

Overview

  • The U.S., led by President Trump, is urging all 31 NATO allies to commit to raising defense spending to 5% of GDP, significantly above the current 2% guideline.
  • NATO Secretary General Mark Rutte has proposed a phased framework to achieve 3.5% in direct military spending and 1.5% in related expenditures by 2032.
  • Only 23 of NATO’s 32 member nations met the existing 2% GDP defense spending target in 2024, highlighting disparities in burden-sharing across the alliance.
  • The EU has suggested loosening budget rules and creating a €150 billion defense fund to assist member states in meeting heightened spending goals.
  • Internal NATO discussions include a proposed annual 0.2% GDP spending increase, though consensus remains elusive as members debate definitions and feasibility.