Overview

• NATO countries agreed to raise defence spending to 5% of GDP by 2035, with 3.5% allocated to core military needs and 1.5% to security-related investments.
• Spain negotiated an exemption from the 5% target by committing to spend 2.1% of GDP on core defence capabilities.
• President Trump’s insistence on larger European contributions shaped the compromise and will dominate discussions at the summit.
• The Hague summit opening June 24 will unfold under uncertainty after US strikes on Iranian nuclear sites and limits Ukraine’s President Zelenskiy to a pre-summit dinner.
• NATO plans to bolster its industrial base and defence production as low spenders like Italy and Canada face mounting pressure to increase their budgets.