Prime Minister Keir Starmer and US President Donald Trump attends the NATO Summit at The Hague, 25/06/2025.  Picture by Simon Dawson / No 10 Downing Street, via Wikimedia Commons.
Economics

NATO Boosts Defense Budget, Reaffirms Unity Amid Global Threats

Alliance Commits to 5% GDP Spending Goal by 2035, Signals Robust Collective Defense

Naffah

New Spending Targets Set

NATO leaders, convening in The Hague on June 25, endorsed a significant increase in defense spending, aiming for 5% of GDP by 2035.

This decision aligns with demands from U.S. President Donald Trump for greater contributions from allies, while addressing European concerns over Russia’s growing threat since its 2022 invasion of Ukraine.

The new target allocates 3.5% for core defense, like troops and weapons, and 1.5% for broader security measures, including cybersecurity and infrastructure resilience.

Spain, however, maintained it could meet commitments with lower spending, a stance NATO Secretary General Mark Rutte diplomatically accommodated to ensure summit harmony.

Collective Defense Reaffirmed

The alliance issued a concise five-point communique, emphasizing an “ironclad commitment” to Article 5, NATO’s mutual defense principle, stating an attack on one member is an attack on all.

Trump, addressing earlier ambiguity, affirmed: “I stand with it. That’s why I’m here. If I didn’t stand with it, I wouldn’t be here.”

Despite broad agreement, tensions surfaced as French President Emmanuel Macron criticized Trump’s threatened trade tariffs, arguing: “You cannot come to us as allies and ask that we spend more, tell us we will spend more at NATO - and do a trade war. It’s an aberration.”

Rutte, hosting in his home city, hailed the summit as forging a “stronger, fairer, and more lethal” alliance.

Navigating Challenges

While the summit was deemed historic by leaders, including UK Prime Minister Sir Keir Starmer, who noted NATO’s enduring relevance in a volatile world, divisions persisted.

Spain’s Prime Minister Pedro Sánchez, initially isolated in opposing the 5% target, signed the communique, calling it “sufficient, realistic, and compatible” for Madrid’s lower spending.

Belgium and Slovakia also voiced concerns but ultimately supported the plan.

Rutte acknowledged the financial strain on European nations and Canada but stressed: “There is absolute conviction with my colleagues at the table that, given this threat from the Russians, given the international security situation, there is no alternative.”

The summit, scaled back to a brief session, also saw commitments to support Ukraine, with direct contributions to Kyiv’s defense counted toward spending goals.nato

SCROLL FOR NEXT