THE HAGUE — NATO allies have agreed to a historic increase in defence spending, setting a new target of 5% of GDP by 2035. The decision comes after intense pressure from U.S. President Donald Trump, who has long called for greater financial contributions from European and Canadian partners.
Leaders from the 32-member alliance announced the move following a short summit in The Hague, which aimed to reassure the U.S. of NATO’s future commitments.
“We had a great victory here,” Trump told reporters, adding that he hoped the new funds would be spent on American-made military equipment.
Breakdown of the 5% Target
Under the new plan, 3.5% of GDP will go towards core defence, including troops and weapons. The remaining 1.5% will support broader security efforts such as cyber defence, critical infrastructure, and civil preparedness.
Each country must submit annual plans showing a credible path to achieving the target by 2035. NATO Secretary General Mark Rutte called the agreement a “quantum leap” in collective security.
“The decisions made today will make NATO much stronger, they also make NATO a fairer alliance,” Rutte said.
Trump Warns Spain Over Low Defence Spending
Spain, currently NATO’s lowest defence spender, voiced concerns about the ambitious goal. Prime Minister Pedro Sanchez insisted that his country could meet its NATO obligations with 2% of GDP.
“Spain can carry out NATO’s defence plans at 2 percent of GDP,” said Sanchez.
Trump, however, sharply criticized Spain’s stance and hinted at possible economic consequences.
“They want to stay at 2 percent. I think it’s terrible,” Trump said. “We’re negotiating a trade deal with Spain — they’ll end up paying double.”
Spain’s Economy Minister Carlos Cuerpo responded by reminding Washington that trade talks with the U.S. are led by the European Commission.
Pushback From Belgium and Slovakia
Other nations also raised concerns. Belgium said the timeline was unrealistic, while Slovakia noted it would retain the right to set its own budget priorities.
Despite disagreements, the final communique reaffirmed NATO’s foundational commitment:
“We reaffirm our ironclad commitment to collective defence as enshrined in Article 5 of the Washington Treaty – that an attack on one is an attack on all.”
Broader Context and Strategic Implications
The agreement follows increasing tensions with Russia, ongoing conflicts in the Middle East, and a growing U.S. focus on the Indo-Pacific. NATO’s new target is seen as a response to these rising global threats.
President Trump, who has often criticized NATO spending levels, said:
“[It’s] something that no one really thought possible. They said, ‘You did it, sir. You did it.’ Well, I don’t know if I did it, but I think I did.”
British Prime Minister Keir Starmer pledged that the UK would reach 4.1% defence and security spending by 2027, likely aiming to show solidarity with Washington.
Looking Ahead
A formal review of the new defence commitment will take place in 2029, after the next U.S. presidential election. Leaders agree that innovation, speed, and unity are critical to NATO’s future success.
“We need to innovate and we need to act fast,” said Rutte. “The resolve of allies is clear: we are in this together.”
The summit marked a major shift in NATO’s strategic and financial posture, with U.S. influence playing a defining role in shaping the alliance’s path forward.