NATO member states have reached a landmark agreement to raise defense spending to 5% of their gross domestic product (GDP) by 2035, marking the alliance’s most significant strategic shift in over a decade.
The decision, finalized during this year’s NATO summit in The Hague, comes as global security threats escalate, with the ongoing Russia-Ukraine conflict, tensions in the Middle East, and increasing cyber and terrorism risks dominating the agenda.
In a joint declaration issued at the summit, NATO leaders emphasized their unity in the face of “profound security threats and challenges,” specifically highlighting Russia’s long-term threat to Euro-Atlantic security and the persistent danger of terrorism.
“By 2035, all allies commit to investing 5% of GDP annually in defense and security-related requirements to fulfill both individual and collective obligations,” the statement read.
Breaking Down the 5% Commitment
The historic target includes a minimum of 3.5% of GDP to be allocated strictly for defense spending, such as military hardware, personnel, and operations. The remaining 1.5% is intended for defense-related infrastructure, cyber resilience, and technological innovation critical to national security.
The agreement requires each NATO member to submit annual plans detailing their progress and providing a credible, step-by-step pathway toward the 2035 goal.
This latest move significantly raises the bar from NATO’s 2014 pledge, where members committed to spending 2% of their GDP on defense. Despite that target, several allies have yet to meet the original 2% threshold.
Mark Rutte: “Quantum Leap for NATO”
NATO Secretary General Mark Rutte, who presided over the summit, described the agreement as a “quantum leap” for the alliance, both in terms of military capability and strategic solidarity.
“This is about more than defense spending—it’s about ensuring our resilience, safeguarding our democracies, and preparing NATO for the challenges of tomorrow,” Rutte said during the opening session of the North Atlantic Council Plenary.
Rutte acknowledged that while achieving the 5% target would be demanding, it represents a necessary step given the evolving security environment. He added that the increased investment would also bring economic benefits, including job creation and innovation within the defense sector.
“This makes NATO stronger, fairer, and more capable. Our unity today sends a clear message: we stand together, committed to Article 5, ready to defend every inch of our territory,” he added.
Trump Urges Allies to Share the Burden
The summit also saw U.S. President Donald Trump reaffirm Washington’s commitment to the alliance, while reiterating his longstanding call for European allies and Canada to shoulder a greater share of defense costs.
Trump, who arrived in The Hague on Tuesday, initially raised eyebrows with comments that appeared to question the interpretation of NATO’s central Article 5—the principle that an attack on one ally is considered an attack on all.
Speaking to reporters aboard Air Force One, Trump remarked, “There are various interpretations of Article 5, you know that. But I’m committed to our friends in NATO.”
Despite these remarks, Trump publicly endorsed the 5% defense spending target during the summit, describing it as a necessary rebalancing of responsibilities within the alliance.
Secretary General Rutte sought to downplay concerns over Trump’s earlier comments, stating, “The United States remains totally committed to NATO. Article 5 is clear. Our focus is on building capabilities and strengthening our collective defense.”
Spain and Others Express Reservations
Not all NATO members embraced the new spending target without hesitation. Spain, in particular, expressed concern over the feasibility of reaching the 3.5% defense expenditure benchmark, citing domestic economic constraints.
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However, following discussions behind closed doors, Spanish officials indicated a willingness to work toward the target over time.
“I believe Spain is serious about its commitments,” Rutte said, acknowledging Madrid’s initial reservations while praising their willingness to cooperate.
German Foreign Minister Johann Wadephul also weighed in, noting that “one against thirty-one” was not a sustainable position for Spain or any other dissenting member. He stressed that Berlin, which has now fully committed to the 5% target, stands ready to play a more prominent role in European defense.
Finland: “A Historic Rebalancing of NATO”
Speaking after the joint declaration, Finnish President Alexander Stubb characterized the summit as a historic turning point for the alliance.
“We’re seeing a rebalancing of NATO—a stronger Europe within the alliance, and renewed American confidence that Europe is stepping up,” Stubb said.
Describing the atmosphere at the summit as “cool, calm, and collected,” Stubb said there was a shared sense of achievement among leaders, despite the grave global challenges they face.
“The Europeans have woken up to reality,” Stubb remarked. “The Americans are satisfied, and NATO is emerging stronger, more balanced, and more united than it has been in decades.”
Looking Ahead
The implementation of the new spending target will be closely monitored, with annual progress reports expected from all NATO members. The alliance’s leadership stressed that while this agreement marks a bold step forward, achieving the 5% goal will require sustained political will, innovation, and collaboration.
In the face of rising geopolitical tensions, cyber warfare threats, and a shifting global power balance, NATO’s latest commitment underscores its determination to maintain readiness, deter aggression, and safeguard the security of its one billion citizens.
As the summit concluded, Rutte left no room for ambiguity: “This is Day One. The work starts now.”
