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    Home»Business»NATO allies agree to higher 5% defense spending target
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    NATO allies agree to higher 5% defense spending target

    Daniel snowBy Daniel snowJune 25, 20252 Mins Read
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    Mark Rutte, secretary general of the North Atlantic Treaty Organization (NATO), left, and U.S. President Donald Trump, during the NATO summit in The Hague, Netherlands, on Wednesday, June 25, 2025.

    Bloomberg | Bloomberg | Getty Images

    NATO allies on Thursday agreed to more than double their defense spending target from 2% of gross domestic product to 5% by 2035, in the most decisive move from the alliance in over a decade.

    In a joint declaration, the alliance said it was “united in the face of profound security threats and challenges,” in particular the long- term threat posed by Russia to Euro-Atlantic security and the “persistent threat” of terrorism.

    “Allies commit to invest 5% of GDP annually on core defence requirements as well as defence-and security-related spending by 2035 to ensure our individual and collective obligations.,” it continued.

    The 5% figure is made up of 3.5% of GDP that should be spent on “pure” defense, with an extra 1.5% of GDP going to security and defense-related “critical infrastructure” to ensure, the statement said, “our civil preparedness and resilience, unleash innovation, and strengthen our defence industrial base.”

    Allies will be required to submit annual plans “showing a credible, incremental path to reach this goal,” NATO said, following pushback from some member states, particularly Spain.

    The historic move comes against a backdrop of tensions in the Middle East and ongoing war between Ukraine and Russia. Members have also been pushed to the new target after years of pressure across both terms of U.S. President Donald Trump for Washington’s Canadian and European allies to share more of the burden of collective defense.

    The alliance on Wednesday also reaffirmed its “ironclad commitment to collective defence” as enshrined in Article 5 that an attack on one is an attack on all, following question marks over the U.S.’ reliability when it came to that central pillar of NATO.

    “We remain united and steadfast in our resolve to protect our one billion citizens, defend the Alliance, and safeguard our freedom and democracy,” the statement read.

    This is a breaking news story, please check for further updates.



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