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NATO Sets 5% GDP Defense Spending Target by 2035 Ahead of Hague Summit

The plan allocates 3.5 percent of GDP to core military needs with 1.5 percent for related investments pending formal approval later this week.

Demonstrators hold signs against a war in Iran, during a march against the upcoming NATO leaders' summit, at The Hague, Netherlands, June 22, 2025. REUTERS/Piroschka van de Wouw
Demonstrators hold 'ROOD Socialistische Jongeren' (RED socialist youth) flags during a march against the upcoming NATO leaders' summit, at The Hague, Netherlands, June 22, 2025. REUTERS/Piroschka van de Wouw
Spanish Prime Minister Pedro Sanchez meets with NATO Secretary General Mark Rutte at Moncloa Palace in Madrid, Spain, January 27, 2025. REUTERS/Juan Medina/File Photo
A demonstrator reacts, during a march against the upcoming NATO leaders' summit, at The Hague, Netherlands June 22, 2025. REUTERS/Piroschka van de Wouw

Overview

  • NATO diplomats say all 32 members have endorsed a plan to boost defense and security spending to 5% of GDP by 2035, subject to summit ratification.
  • Spain dropped its objection after securing a carve-out, ending resistance from left-wing coalition allies to higher defense budgets.
  • U.S. President Donald Trump’s repeated criticism of European defense shortfalls has driven momentum for the new spending benchmark.
  • Poland and the Baltic states already exceed 4% of GDP on defense while Canada, Italy and Spain remain below NATO’s original 2% guideline.
  • Some governments are expected to rely on creative accounting, including counting infrastructure upgrades as defense expenditures, to meet the ambitious goal.