Overview
- Donald Trump has called for NATO allies to increase defense spending to 5% of GDP, a significant jump from the current 2% target, which only 24 of 32 members currently meet.
- European allies face challenges in meeting this demand due to strained budgets, industrial limitations, and political resistance to cutting social spending.
- Russia’s defense spending, now at 6.7% of GDP, has surpassed Europe’s combined military expenditure in purchasing power terms, raising concerns over its growing military capabilities.
- NATO is divided into three groups: nations near Russia willing to spend close to 5%, countries open to moderate increases, and those reluctant to commit due to fiscal and threat perception concerns.
- The U.S. has signaled a shift in focus toward deterring China in the Pacific, urging European nations to take greater responsibility for their own security.