NATO Members Commit to 2% Defense Spending Target by 2024 Under U.S. Pressure

In a significant development during the Trump administration, NATO leaders have agreed to increase their military spending commitments in a move aimed at appeasing the U.S. President Donald Trump. This agreement comes amidst extensive discussions where NATO members pledged to allocate at least 2% of their GDP towards defense by 2024. However, there remains some flexibility in how countries might meet these targets, leading to varying interpretations of the commitments made. Despite the positive reception from many leaders, Spain notably did not receive the same endorsement, raising questions about its future in the alliance and its defense spending.

The agreement reflects an ongoing effort within NATO to bolster collective defense in light of rising geopolitical tensions. President Trump has consistently pushed for higher defense budgets among NATO allies, arguing that the burden should not fall disproportionately on the United States. The leaders' pledge signifies a shift in response to his calls, and although Trump hailed this as a victory, concerns linger regarding the unity of the alliance and the varying commitment levels of individual countries. Notably, this decision may influence NATO’s strategies and military postures in the coming years, especially as threats from nations such as Russia continue to evolve. While this commitment marks progress, the need for cohesive action among member states remains a topic of intense scrutiny.

During the NATO summit held on June 25, 2025, NATO allies agreed to significantly increase their defense spending target from the current 2% of gross domestic product (GDP) to 5% by 2035. This decision marks the most substantial change in defense spending policy by the alliance in over a decade and comes amid ongoing security tensions, particularly related to threats posed by Russia and terrorism. The joint declaration issued by NATO emphasized the necessity for member states to collectively shoulder the burden of defense, particularly in light of the volatile geopolitical landscape in the Middle East and consistent military pressures in Eastern Europe.

According to the new agreement, at least 3.5% of GDP must be allocated specifically for pure defense, while the remaining funds will focus on security and defense-related infrastructure to enhance civil preparedness and ensure overall resilience. Member countries are now required to present annual plans to demonstrate a clear pathway toward achieving this goal, responding to previous concerns that some states, including Spain, had not yet met the original 2% target established in 2014.

NATO Secretary General Mark Rutte heralded the decision as a 'quantum leap' in collective security, indicating that it would not only bolster defense capabilities but also potentially create job opportunities across member states. President Donald Trump, attending the summit, claimed credit for pressuring NATO allies into increased spending, labeling the commitment a 'monumental win' for the U.S., although he also criticized Spain for seeking exemptions from the target. The overall commitment reflects NATO's unwavering unity in confronting shared security threats, as underscored by the reaffirmation of Article 5, which pledges collective defense in the event of an attack on any member. This significant policy shift has implications for U.S.-European relations, especially with looming trade negotiations involving Spain and potential tariffs on the horizon.

NATO member countries have agreed to increase their defense spending to 5% of their economic output, a significant commitment pushed by U.S. President Donald Trump for years. The new agreement, announced during the NATO Summit in the Netherlands, more than doubles the current target of 2%. While the U.S. currently spends approximately 3.5% of its economic output on defense, it does not plan to meet the new 5% goal. President Trump has long criticized NATO allies for not contributing their "fair share" to the alliance's collective defense. The decision comes amid heightened security concerns due to Russia's ongoing war in Ukraine and Trump's suggestion that Europe, rather than the U.S., should take primary responsibility for its own security. NATO Secretary-General Mark Rutte emphasized the need for fairness and alignment with U.S. contributions, stating, "We have to keep ourselves safe from our adversaries, but also because it is fair to equalize with the United States." Trump praised the agreement, saying, "NATO is going to become very strong with us, and I appreciate them doing it." However, the agreement has sparked controversy, particularly regarding Trump's reluctance to reaffirm the U.S. commitment to NATO's Article 5, which stipulates that an attack on one member is an attack on all. The only time Article 5 was invoked was in defense of the U.S. after the September 11 attacks. The new spending target reflects a broader shift in NATO's strategic priorities, driven by geopolitical tensions and internal debates over burden-sharing.

NATO Secretary-General Jens Stoltenberg has publicly reassured allies of the United States' unwavering commitment to the alliance, emphasizing that both President Donald Trump and the U.S. are fully dedicated to NATO's collective defense principles. This statement comes as NATO leaders convene for a historic summit, where unity among member states is a critical focus. The summit, held at NATO headquarters in Brussels, Belgium, aims to address pressing global security challenges and reinforce the alliance's strategic objectives. President Trump's departure for the summit underscores the U.S.'s active participation in these discussions. The gathering is particularly significant as it seeks to mend any perceived rifts among member nations and solidify NATO's role in contemporary geopolitics. Stoltenberg's remarks highlight the importance of transatlantic cooperation and the shared values that underpin the alliance. The summit agenda includes discussions on defense spending, cybersecurity threats, and collective responses to emerging global threats. The event is expected to conclude with a joint declaration reaffirming NATO's unity and strategic priorities.

NATO allies have reportedly agreed in principle to increase their defense spending to 5% of gross domestic product (GDP) by 2035, a significant rise from the current 2% target set in 2014. The new target consists of 3.5% of GDP allocated to pure defense and an additional 1.5% for security-related infrastructure, including cyber warfare capabilities and intelligence. This decision was reached during a meeting of NATO ambassadors on Sunday, ahead of the annual NATO summit in Watford, London, on December 3, 2019. The move reflects a compromise to address long-standing demands from the United States, particularly under President Donald Trump, who has consistently pressured allies to contribute more to collective defense. However, achieving the 5% target poses a considerable challenge for many of the 32 member states, as evidenced by NATO estimates for 2024 defense spending. While some countries, such as Poland, Estonia, the U.S., Latvia, and Greece, have already surpassed the 2% threshold, others like Canada, Spain, and Italy continue to lag behind. Defense spending has been a contentious issue within NATO, with Trump advocating for higher contributions since 2018. Despite the agreement, skepticism remains about the feasibility of meeting the new target, given the economic and political hurdles faced by member states. The summit also highlighted ongoing tensions over burden-sharing, with Trump emphasizing the need for allies to "pull their weight" in defense and security.

The upcoming NATO summit, hosted in The Hague, Netherlands, marks a pivotal moment for the alliance as it addresses growing security challenges and internal tensions. This is the first NATO meeting since U.S. President Donald Trump's reelection, and European allies are keen to demonstrate their commitment to defense spending to avoid further strain in transatlantic relations. Trump has historically criticized NATO members for not contributing enough to collective security, and this summit is designed to address his demands by pledging a significant increase in defense spending to 5% of GDP—3.5% on hard military expenditures and 1.5% on defense-related efforts. NATO Secretary General Mark Rutte has tailored the summit to focus narrowly on financial commitments to avoid potential clashes with Trump, who has been vocal about Europe freeloading on U.S. security guarantees.

The summit comes at a time of heightened global tensions, with Russia and China closely monitoring Western unity. The new defense investment plan aims to rebalance transatlantic security and provide Trump with a political victory, as the increase aligns with his long-standing demands. However, challenges remain, including Spain's initial claim of an opt-out from the spending plan, which Rutte later denied. Other European nations are also struggling to meet the financial targets, raising concerns about the feasibility of the pledge.

Amid these discussions, the recent missile strikes by Iran on U.S. airbases in Qatar and Iraq add another layer of complexity. Trump may prioritize handling this crisis from Washington, but if he attends the summit, the Middle East conflict could overshadow the agenda, risking further discord with European allies who favor diplomatic solutions over military action.

NATO's broader strategy includes a fivefold increase in air defense capabilities, thousands more tanks and armored vehicles, and stockpiling millions of rounds of artillery ammunition to deter aggression. The alliance also reaffirmed its unwavering support for Ukraine, emphasizing the need for a just and lasting peace while ensuring Ukraine's defense capabilities.

The summit represents a critical test for NATO's cohesion and credibility, with European leaders striving to keep the U.S. engaged while addressing internal divisions over defense spending. The outcome will shape the alliance's future in an increasingly volatile global landscape.

The upcoming NATO summit in The Hague, Netherlands, scheduled to begin on Tuesday, June 20, 2025, is already facing significant challenges due to disagreements over defense spending targets. U.S. President Donald Trump has reiterated his stance that the U.S. should not be held to the same defense spending standards as other NATO members, while Spain has formally rejected the proposed 5 percent GDP spending goal, further complicating the alliance's efforts to reach a consensus.

Trump, speaking to reporters upon arriving at Morristown Municipal Airport in New Jersey on June 20, 2025, stated, 'I don’t think we should, but I think they should,' referring to his demand that NATO allies commit to spending at least 5 percent of their GDP on defense. The U.S. currently spends 3.4 percent of its GDP on defense, while most NATO members spend just over 2 percent, with some planning to increase to around 3 percent in the coming years. Trump's proposal has led NATO to consider a compromise: 3.5 percent for defense and 1.5 percent for domestic infrastructure and cybersecurity, totaling 5 percent.

Meanwhile, Spanish Prime Minister Pedro Sánchez has explicitly opposed the 5 percent target, arguing that Spain does not need such spending to meet its NATO capability targets. In a letter to NATO Secretary-General Mark Rutte, Sánchez emphasized that Spain, which allocated only 1.3 percent of its GDP to defense in 2024, cannot commit to the higher spending goal. He requested either flexible wording to make the target optional or a formal exemption for Spain. Sánchez also noted that a 5 percent defense spending goal would jeopardize Spain's economic stability and the European Union's security efforts.

The summit's success is now in doubt, as Spain's public rejection of the spending hike makes it difficult for other nations, such as Belgium, Canada, France, and Italy, to support the proposal. NATO's consensus-based decision-making process means any single member can block the agreement. While Sweden has agreed to meet the 5 percent target by 2032, Spain's resistance highlights the challenges of aligning all 32 member states on defense spending.

The summit will bring together leaders from all NATO member states to discuss spending goals, force structure, and deployment plans. However, the discord over spending targets threatens to overshadow these discussions, with Trump's demands and Spain's refusal creating a significant rift within the alliance.