Overview

• NATO leaders agreed at the Hague summit on June 25 to raise defense spending to 5% of GDP by 2035, allocating 3.5% for core military needs and 1.5% for security infrastructure and resilience.
• The commitment requires annual national plans and a 2029 review, but it carries no legal obligation and allows flexibility on spending trajectories.
• Major contributors including Turkey and Italy said flexible budgeting lets them meet the target without diverting funds from other priorities, but Spain rejected the 5% goal as unrealistic.
• President Trump hailed the decision as a "big win" for Europe and the West, and the U.S. is expected to press Asian allies such as South Korea and Japan to adopt similar benchmarks.
• The declaration reaffirmed NATO’s Article 5 collective defense clause but omitted any mention of Ukraine’s NATO aspirations or explicit condemnation of Russia’s full-scale invasion.