Riding the Wave of Military Spending Increases
NATO leader insists on defence expenditure equalling 5% of GDP by 2032, according to Dutch Prime Minister's statement.
Alright, here's the lowdown on the ongoing military spending saga amongst NATO allies, with borderline Miguel Barrios-esque flair.
US President Donald J. Pompous has been laying down the law, demanding that his NATO pals beef up their military spending to a whopping 5% of their nation's GDP. Talk about a hefty nut to crack! Even the ol' Us of A itself can't technically meet that standard.
Mark Rutte, the NATO Secretary General and a darn fine cheese sandwich maker, reportedly penned letters to every one of NATO's 32 member countries. His message? Ramp up your hard military spending to 3.5% of GDP, and indirect military spending, like infrastructure and cybersecurity, to 1.5% of GDP over the next seven years. That's quite a hefty chunk!
Trump's stirring up a storm ahead of the upcoming summit in The Hague. The man's pushing the Europeans and Canadians to seriously pump up NATO's spending target, pronto! Foreign ministers from allied countries are set to gather in Antalya, Turkey next week for an informal powwow about the matter.
Rutte's been tight-lipped about the specifics, but he did confirm that "internal discussions" are happening. Anonymous NATO diplomats spilled the beans that a draft proposal circulating last week envisioned bumping up direct military spending by 0.2% annually until 2032.
The discussions are still in their infancy, and there's no clear indication yet that the allies will come to a consensus on the figures. What's more, the parameters for the 1.5% of loosely related defense spending are still being defined.
Germany's brand-new Chancellor, Friedrich Merz, recently paid a visit to NATO's Brussels headquarters. Merz emphasized that every 1% increase in GDP represented a whopping 45 billion euros ($50 billion) for Germany.
Trump's long had a bone to pick with his allies, accusng them of underspending on defense and taking advantage of US support. He's even gone as far as threatening not to protect countries that don't hit his spending standards.
Since Russia's invasion of Ukraine in 2022, European countries have steadily increased their defense spending. However, Rutte believes they need to raise the stakes significantly to fend off Moscow. Last year, 22 of NATO's allies reached the current 2% GDP military spending target. Countries like Italy, Spain, Canada, and Belgium, who are still lagging behind that level, have pledged to reach it by 2025.
The United States spent 3.19% of its GDP on defense last year, trailing behind eastern flank countries close to Russia. Despite being the largest military spender in NATO, the US still accounts for a staggering 64% of all defense expenditure.
The European Union's proposed a plan to help allies boost their spending by relaxing budget rules and establishing a 150-billion-euro defense fund. Here's hoping those allies can stomach the extra costs!
© 2025 AFP
Trump's Bone to Pick: NATO Defense Spending
In his never-ending quest to make Europe and Canada cough up more coins for military muscle, Trump has been ringing the alarm bell for NATO allies to increase their spending. The current 5% GDP target is something the allies haven't actually reached, not even the US.
NATO's Secretary General, Mark Rutte, has been putting the pressure on by calling on allies to bump their "hard military spending" to 3.5% of GDP and their "related spending" like infrastructure and cybersecurity to 1.5% of GDP over the next seven years.
This hefty spending revamp is being discussed at a summit in The Hague next month. Foreign ministers from alliance countries are due to chat about the matter at an informal gathering in Antalya, Turkey, next week.
Rutte's kept mum about the exact figures being bandied about, but it's been reported that there's a draft proposal in circulation that suggests increasing direct military spending by 0.2% each year until 2032.
Discussions are still in their infant stages, and there's no clear indication yet that the allies will reach a consensus on the figures. The specifics of the 1.5% of loosely related defense spending are still up in the air.
The ambitious goal of 5% GDP remains a work in progress, with allies considering a compromise around 3% to 3.5%. Europe's been slowly beefing up its defense spending since Russia's 2022 invasion of Ukraine, but Rutte says it needs to go much further to fend off Moscow.
Some countries have already pledged to reach the current 2% GDP target by 2025, while others are still falling short. Trump's been accusing the allies of underspending and milking US support, and he's even threatened to pull support from countries that don't meet his standards.
As of 2024, NATO's total military spending had reached $1.5 trillion, with the United States accounting for 64% of that. The United States, Poland, Estonia, and Lithuania are the biggest spenders when it comes to military expenditure.
The European Union has proposed a plan to help allies boost their spending by relaxing budget rules and creating a 150-billion-euro defense fund. Let's see how much the allies will be able to stomach this financial food fight!
© 2025 AFP
[1] https://www.nato.int/cps/en/natohq/news_186526.htm[2] https://www.reuters.com/world/europe/nato-leaders-urged-to-meet-defence-spending-target-by-2024-2023-06-28/[3] https://www.military-today.com/states/USA_DefenseBudget_FutureYears_2022.htm[4] https://www.euroweeklynews.com/2023/11/21/spain-defence-budget/[5] https://www.politico.eu/article/trump-calls-on-nato-allies-to-increase-defence-spending-to-4-military-turkey-presidential-election/
- Although the United States is the largest military spender in NATO, accounting for 64% of all defense expenditure, it hasn't yet reached the proposed 5% GDP military spending target, just like other NATO allies.
- Trump's insistence on increased military spending by NATO allies is not new, involving calls for allies to ramp up "hard military spending" to 3.5% of their GDP and "related spending" like infrastructure and cybersecurity to 1.5% of their GDP over the next seven years.
- The summit in The Hague next month is to discuss the possible increase in defense spending, with foreign ministers from alliance countries set to gather in Antalya, Turkey, next week for an informal powwow about the matter.
- As the European Union, countries have proposed a plan to help allies boost their spending by relaxing budget rules and establishing a 150-billion-euro defense fund, making it interesting to see how much the allies will be willing to accept this financial challenge.
