NATO commits to major defence spending hike sought by Trump

The bloc agreed to boost spending to 5 percent of GDP, but Spain, Belgium and Slovakia said they will struggle to meet target.

NATO allies have agreed to massively boost military spending while affirming their “ironclad commitment” to collective defence.

Leaders from the 32-member bloc pledged to allocate up to 5 percent of their national GDP to defence and related sectors by 2035, describing the move as a “quantum leap” in collective security.

The new pledge was made in a summit communique agreed on Wednesday in The Hague. It stated that members would “invest 5 percent of GDP annually on core defence requirements as well as defence- and security-related spending”.

The commitment includes a review point in 2029, conveniently set for after the next US presidential election, to evaluate progress and reassess the threat posed by Russia.

NATO Secretary General Mark Rutte hailed the agreement as “transformational”, a sentiment echoed by several leaders, though it glossed over clear differences within the alliance.

US President Donald Trump, who has repeatedly pushed for a higher NATO defence spending commitment, took credit for the shift.

“[It’s] something that no one really thought possible,” Trump said at the summit. “They said, ‘You did it, sir. You did it.’ Well, I don’t know if I did it, but I think I did.”

In a move that will likely curry favour with Trump, British Prime Minister Keir Starmer said on Wednesday that the United Kingdom expects to spend at least 4.1 percent on defence and security by 2027.

Divisions over spending

Not everyone is on board. Spain has already said it cannot meet the 5 percent target. Prime Minister Pedro Sanchez insisted that his government would stick with the existing 2 percent threshold — a benchmark first set following Russia’s full-scale invasion of Ukraine in 2022.

“Spain can carry out NATO’s defence plans at 2 percent of GDP,” Sanchez said. “This summit secures both our national security and the welfare of our citizens.”

Spain is NATO’s lowest spender on defence. In 2024, it spent 1.24 percent and was among the nine member countries to fall short of the 2 percent target.

Trump was quick to criticise Madrid’s stance, threatening retaliation through economic means.

“They want to stay at 2 percent. I think it’s terrible,” the US president said. “We’re negotiating a trade deal with Spain — they’ll end up paying double.”

Belgium and Slovakia also raised objections. Brussels warned that the timeline was unrealistic, while Bratislava said it reserved the right to make independent decisions on its own military spending.

Steep spending demands

Despite the pushback, the declaration formalised new targets: 3.5 percent for NATO’s “core defence spending,” plus an additional 1.5 percent for broader security measures — from infrastructure upgrades like roads and ports to cyber defence and emergency response capabilities.

Norwegian Prime Minister Jonas Gahr Store described the agreement as unprecedented.

“We struggled for years just to get past 2 percent,” he said. “Now we’re talking about 3.5 percent, which is necessary to build the capabilities we need.”

The spending demands are steep. As the US increasingly shifts strategic focus to the Middle East and Indo-Pacific, European members are being urged to shoulder more of the military burden.

The commitments come as the US remains engaged in multiple theatres, including ongoing arms support for Ukraine’s fight against Russia, supporting Israel’s war on Gaza, and backing continued strikes on Lebanon, Syria and Yemen. More recently, Israel’s war with Iran has further stretched US military resources.