NATO Defense Spending: Allies Agree on 5% GDP Goal by 2035 Despite Spanish Reservations
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NATO member countries have reached a consensus on a statement setting a goal of allocating 5% of their Gross Domestic Product (GDP) to annual defense and security-related expenditures by 2035. this agreement was achieved after overcoming initial objections from Spain,according to diplomatic sources. The agreement awaits formal approval by leaders, including the U.S. President, at the upcoming summit in The Hague [1].
Agreement on Defense Spending
The statement has received the green light from all 32 NATO members, but its official adoption hinges on approval from the heads of state and government at the summit. Spanish Prime Minister Pedro Sanchez initially opposed an earlier version of the statement, arguing that committing to a 5% target would be both unreasonable and counterproductive. In 2024, Spain’s defense spending was estimated to be 1.24% of its GDP, according to NATO figures.
Did You Know? NATO was created by 12 countries from Europe and North America on April 4, 1949 [2].
Diplomats addressed Sanchez’s concerns by modifying the wording of the spending pledge,changing “we commit” to “allies commit.” This allowed Sanchez to assert that the commitment would not apply to Spain. “We fully respect the legitimate desire of other countries to increase their defense investment, but we are not going to do so,” Sanchez stated in a televised address.
the Consensus-Based Nature of NATO
NATO operates on the principle of consensus, requiring all 32 member states to approve a statement for it to be adopted. This highlights the importance of negotiation and compromise in achieving collective agreement within the alliance.
Rationale Behind increased Spending
NATO officials contend that substantial increases in defense spending are necessary to address the escalating threat posed by Russia and to enable Europe to assume greater responsibility for its own security, particularly as the United States increasingly focuses its military resources on China. The current defense spending target for NATO members is 2% of GDP, but there has been increasing pressure to raise this figure.
Pro Tip: NATO promotes democratic values and enables members to consult and cooperate on defence and security-related issues to solve problems, build trust and, in the long run, prevent conflict [1].
The Rutte Plan
Under a plan proposed by outgoing NATO Secretary General Jens Stoltenberg, countries would reach the 5% of GDP target by increasing their core defense spending goal from 2% to 3.5% and allocating an additional 1.5% to related areas such as adapting infrastructure for military use and enhancing cybersecurity. The initial proposal aimed for countries to meet the new target by 2032, but the final text extends the deadline to 2035, with a review of the target scheduled for 2029.
| Metric | Current Target | New Target | Deadline | Review |
|---|---|---|---|---|
| Defense Spending | 2% of GDP | 5% of GDP | 2035 | 2029 |
NATO’s Political and Military Role
NATO’s purpose is to guarantee the freedom and security of its members through political and military means [1]. The alliance promotes democratic values and enables members to consult and cooperate on defence and security-related issues to solve problems, build trust and, in the long run, prevent conflict.
NATO Enlargement
NATO was created by 12 countries from Europe and North America on April 4, 1949. as then, 20 more countries have joined NATO through 10 rounds of enlargement (in 1952, 1955, 1982, 1999, 2004, 2009, 2017, 2020, 2023 and 2024) [2]. Article 10 of the North Atlantic Treaty sets out how countries can join the Alliance.
Evergreen insights: Background, Context, past Trends
NATO’s commitment to defense spending has evolved substantially over time, reflecting changing geopolitical landscapes and security threats. The initial focus on collective defense against the Soviet Union during the Cold War has broadened to address contemporary challenges such as terrorism, cyber warfare, and regional instability. The 2% GDP target, established in 2006, served as a benchmark for member states to maintain adequate defense capabilities. However, in recent years, growing concerns about Russian aggression and the shifting priorities of the United States have prompted calls for increased investment in defense. The new 5% target represents a notable escalation in this commitment, signaling a renewed emphasis on burden-sharing and collective security within the alliance.
FAQ
What is the new NATO defense spending goal?
NATO allies have agreed to a goal of spending 5% of their GDP annually on defense and security-related matters by the year 2035.
Why is NATO increasing its defense spending target?
The increase in defense spending is largely driven by concerns over growing threats, particularly from Russia, and a desire for Europe to assume greater responsibility for its own security as the United States prioritizes its military focus on China.
What was Spain’s role in the NATO defense spending agreement?
Initially, Spain’s Prime Minister Pedro Sanchez blocked the agreement, deeming a 5% target unreasonable. The language was adjusted to specify that “allies commit,” allowing Spain to claim the commitment would not apply to them.
How does NATO make decisions?
NATO operates by consensus, meaning all 32 member countries must approve a statement for it to be officially adopted.
What is the current NATO defense spending target?
The current defense spending target for NATO members is 2% of GDP.The new plan aims to increase this to 5% by 2035.
When will NATO review the new defense spending target?
There will be a review of the 5% GDP defense spending target in 2029 to assess its progress and effectiveness.
What are your thoughts on the new NATO defense spending target? Will it effectively address current security challenges? Share your opinions in the comments below and subscribe for more updates on global affairs.
