NATO Spending: Trump’s 5% Demand and European Response
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BUCHAREST — April 25, 2025 — The debate over NATO spending is intensifying, primarily influenced by the demands of former U.S. President Donald Trump. The core issue centers around the percentage of GDP member nations should allocate to defense, and the subsequent responses from European allies facing pressure. where each nation currently stands, who is meeting the stated goals, and any other developments surrounding European contributions will be explored. For an in-depth analysis, access the full report.
NATO Spending: Trump’s 5% Demand and European Response
Defense spending among European countries has considerably increased as Russia’s invasion of ukraine in 2022. However, pressure is mounting on NATO members to meet spending targets, especially with calls to increase the standard to 5% of GDP.
The 2% Pledge: Who’s Meeting the Mark?
- In 2014, only three NATO members met the 2% of GDP defense spending target.
- As of 2024, 22 of the 32 NATO states are meeting that commitment.
- Nations like Belgium (1.24%),Canada (1.45%), and Italy (1.5%) are among those not yet reaching the 2% goal. Spain is also at 1.24%.
- france (2.03%) is just above the threshold, while germany (2.1%) and the United Kingdom (2.33%) exceed it.
Trump’s Push for 5% and US Contribution
Former President Donald Trump is advocating for NATO members to spend 5% of their total economic added value on military expenditure. This call comes ahead of a NATO summit in The Hague in June.
The U.S. itself is not currently meeting this proposed 5% target. with 3.19% of GDP allocated to defense, the U.S. ranks fourth, behind Poland, Estonia, and Latvia.
Despite not meeting the 5% target, in absolute figures, the US remains by far the largest contributor to NATO, with 64 percent of all military expenditures within the alliance.
Trump has alluded several times that the US Army will no longer defend so-called defaulters.
European Response and Increased Spending
European member states and Canada have collectively increased their defense expenditure by more than 19% in the past year,according to a NATO report.
In Belgium, the De Wever government agreed to increase investments to 2% of GDP this year, requiring approximately 17 billion euros during the legislature.
The Road to 2.5% and 3% Targets
According to a Heritage Foundation report, if NATO members spend 2.5% of GDP, most will need until 2035 to make up for their spending shortfalls. Increasing spending to 3% of GDP could see some members meeting their shortfalls by 2030 [[2]].
