NATO leaders have agreed to a historic defence spending increase after pressure from former U.S. President Donald Trump, committing to boost national budgets to 5% of GDP by 2035—a dramatic rise from the previous 2% target. This NATO defence spending hike marks one of the summit’s boldest moves, designed to bolster Europe’s deterrence amid growing global security threats.
Under the new arrangement, 3.5% of GDP will be dedicated to core military capabilities—troops, weapons, and readiness—while the remaining 1.5% supports broader infrastructure such as cyber defences, logistics, and transport corridors. NATO Secretary-General Mark Rutte hailed the agreement as a “transformational leap” that will make the alliance “stronger, fairer and more lethal”.
President Trump celebrated the outcome as a major triumph for the U.S., praising NATO members for taking on a greater share of defence responsibilities and pledging loyalty to the alliance’s core Article 5 commitment. He even threatened trade sanctions against countries like Spain, Belgium, and Slovakia, which expressed reservations or planned slower timelines .
Still, the move hasn’t been without friction. Spain, in particular, resisted the 5% mandate—citing budget constraints and social priorities—opting instead for a lower 2.1% target. French President Emmanuel Macron also criticized the discord between ambitious defence commitments and U.S. trade actions.
Beyond the numbers, the summit made clear that NATO remains unified in its core mission. Leaders reaffirmed the “ironclad” mutual defence guarantee embedded in Article 5, even amid Trump’s earlier doubts. They also pledged enhanced support for Ukraine, though the issue received less spotlight than defence spending .
For many European nations, meeting this steep increase between now and 2035 will require significant fiscal and strategic overhaul. Germany has already accepted a rearmament plan, while others are expected to submit detailed plans by 2029—before full implementation begins .
In a world grappling with Russia, cyber threats, and geopolitical realignments, NATO’s spending commitment sends a clear strategic message: defence budgets are no longer optional. But whether all allies can follow through, and whether this militarisation undermines diplomatic balance, will define the alliance’s future relevance.
