NATO allies agree to raise defence spending target to 5% by 2035

On June 25, NATO member states agreed to increase their collective defence spending target from 2% to 5% of gross domestic product by 2035, marking the alliance’s most significant commitment to military investment in over a decade.

In a joint declaration, NATO emphasised unity amid growing security challenges, notably the long-term threat from Russia and ongoing terrorism concerns, Caliber.Az reports, referring to US media.

Allies committed to allocating 5% of GDP annually to core defence needs and related security infrastructure to boost civil preparedness, innovation, and the defence industrial base.

At least 3.5% of GDP is to be dedicated to “pure” defence spending, with the remaining amount supporting critical infrastructure linked to defence and security. Member states must submit annual plans detailing credible, incremental progress toward this goal, despite some initial resistance from countries such as Spain.

Several members still fall short of the 2014 benchmark of 2%, underscoring the historic nature of the new target. The agreement comes amid ongoing geopolitical tensions in the Middle East and the Russia-Ukraine conflict, along with persistent calls — especially from the U.S. under President Donald Trump — for European and Canadian allies to shoulder a greater share of defence costs.

The summit reaffirmed NATO’s “ironclad commitment” to collective defence under Article 5, which states that an attack on one ally is an attack on all — a principle questioned by Trump shortly before the summit. NATO Secretary-General Mark Rutte hailed the pact as a “quantum leap” that will enhance security and generate jobs.

Rutte noted the alliance’s understanding of the severity of current threats and praised the collective resolve to strengthen defence capabilities rapidly. He acknowledged Trump’s insistence that allies increase their contributions and stated that the U.S. remains “totally committed” to NATO’s core defence obligations.

Despite some initial reservations, Spain committed to the 3.5% pure defence spending target. Finnish President Alexander Stubb described the summit as a historic return to NATO’s founding principle of collective self-defence, with a positive atmosphere among leaders, including Trump and Rutte.

German Foreign Minister Johann Wadephul highlighted the unity of the 31 member states, emphasising that isolated opposition was ineffective. He noted Germany’s commitment to the 5% target and its readiness to assume greater leadership in European defence. Wadephul concluded by affirming that “Europe is back again,” signalling renewed transatlantic cooperation.

By Tamilla Hasanova