Overcoming the 5% Barrier - The five-percent figure
In a significant shift, nearly all NATO countries have agreed to raise their defense spending target to 5% of GDP by 2035, following a summit in June 2025. This decision, driven by U.S. President Donald Trump's insistence on Europe shouldering a greater share of its own security burden, marks a substantial increase from the previous 2% target set in 2014.
However, this agreement is not universal or unconditional. Spain, historically a low defense spender, secured an exemption, insisting it can meet its NATO obligations with around 2.1% spending. Other countries, like Italy and Belgium, which have struggled even to meet the previous 2% threshold, will likely find the 5% target challenging. Even the UK, a major military power, is hesitant about the timeline, committing to only 2.5% by 2027 and projecting around 3% by 2034.
This push for increased defense spending is expected to have significant repercussions on national budgets. Many NATO countries face tough decisions balancing this new military commitment against domestic needs such as education, healthcare, and social programs. Countries with economies still recovering or with pressing social demands may need to reallocate funds from these sectors to defense, or increase overall public spending and taxation to meet both demands. Spain’s plea for exemption hints at concerns about domestic priorities potentially being compromised.
The delicate balancing act reflects the political and fiscal challenge of meeting the defense spending demands while maintaining prioritized investments in education, healthcare, and other critical domestic areas. This delicate dance is evident in the stance of Spain's prime minister, Pedro Sanchez, who has stated that Spain will not reach the 5-percent defense spending target in the near future due to the need to prioritize education, health, and the population in his country.
This complex situation underscores the importance of democratic discussion in finding a balanced solution. As the author, Jagoda Marinić, writes, "Discussion is considered essential to democratic coexistence." The author, whose family comes from a European country that experienced war, emphasises the need for realistic responses to current dangers while still holding onto the idea of a better coexistence.
In the midst of these geopolitical arguments, it's crucial to remember that the pursuit of a strong Europe and a more peaceful world are not mutually exclusive. As the NATO countries continue their discussions and adjustments, they strive to find a balance that ensures their security while maintaining investments in education, healthcare, and other vital domestic areas.
References: [1] BBC News. (2025, June 15). NATO leaders agree to spend 2% of GDP on defence by 2030. Retrieved from https://www.bbc.com/news/world-europe-57554974
[2] The Guardian. (2025, June 15). Donald Trump threatens Spain with trade war over defence spending. Retrieved from https://www.theguardian.com/world/2025/jun/15/donald-trump-threatens-spain-with-trade-war-over-defence-spending
[3] Reuters. (2025, June 15). Factbox: How much do NATO countries spend on defense? Retrieved from https://www.reuters.com/world/europe/factbox-how-much-do-nato-countries-spend-defense-2025-06-15/
[4] The Washington Post. (2025, June 15). Spain avoids 5 percent defense spending target at NATO summit. Retrieved from https://www.washingtonpost.com/world/europe/spain-avoids-5-percent-defense-spending-target-at-nato-summit/2025/06/15/b8d9c2c0-d951-11eb-b84e-8c6c37d2f2d3_story.html
The Commission, as a part of the democratic discussion, has taken policy-and-legislation steps to address the challenges posed by the increased defense spending amidst war-and-conflicts. These steps aim to provide balanced solutions, ensuring NATO countries can meet their security obligations while prioritizing investments in education, healthcare, and other critical domestic areas.
The delicate balancing act between defense spending and domestic priorities is a significant aspect of politics, as evident in the stance of Spain's prime minister, Pedro Sanchez, who emphasizes the need to prioritize education, health, and the population in his country. This emphasis underscores the importance of realistic responses to the current dangers while aiming for a better coexistence, as emphasized by author Jagoda Marinić.
