NATO leaders announced a significant shift in defence spending after a brief summit in The Hague, responding to long-standing demands by former US President Donald Trump. At the annual gathering, member nations agreed to raise their defence budgets to 5% of their Gross Domestic Product (GDP & NATO Commits to 5% Defence) by 2035 — a huge jump from the current target of 2%.
Trump Secures Spending Commitment and Reaffirms NATO’s Collective Defence
Trump, who has long pressed NATO allies to spend more on defence, called the agreement a “great victory” and hoped the increased budgets would benefit American military suppliers.
He also reaffirmed NATO’s core tenet, Article 5 of the Washington Treaty, stating, “I stand with it. That’s why I’m here. If I didn’t stand with it, I wouldn’t be here.”
Warning to Spain
Trump threatened Spain with trade penalties after its Prime Minister, Pedro Sanchez, announced it intended to spend less than the new target.
“I think it’s terrible. You know, they (Spain & NATO Commits to 5% Defence) are doing very well… And that economy could be blown right out of the water when something bad happens,” Trump said, suggesting the U.S. would pursue tougher trade terms with nations failing to pay their fair share.
New Spending Goals and Challenges
The new target aims for a combined spend of:
- 3.5% of GDP for core defence like troops and weapons, and
- 1.5% of GDP for broader defence-related measures like cybersecurity, pipeline security, and transportation infrastructure.
While this agreement satisfies Trump’s demands, it presents a daunting challenge for many EU nations grappling with economic constraints.
Macron Criticises Trade Frictions
French President Emmanuel Macron expressed concern that increased defence spending might be undermined by Trump’s threat of rising import tariffs.
“We can’t say we’re going to spend more and then launch a trade war within NATO. It’s an aberration,” Macron said, calling out the potential strain this could put on the alliance.
Ukraine and Russia’s Reactions
Although Ukrainian President Volodymyr Zelenskiy was invited to a pre-summit dinner, he did not participate in the main meeting. However, he met Trump separately after the conference. Meanwhile, the Kremlin accused NATO of ramping up militarization, describing its massive defence expenditure as a move to justify aggression towards Russia.
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