NATO Members Pledge to Meet 3.5% Defense Spending Target During Summit

What Happened?

During the 2025 NATO Summit this week, NATO member nations, with the exception of Spain, agreed to meeting an ambitious new defense spending target. The agreement calls for NATO members to increase defense spending to 3.5% by 2030, which would put the members of the alliance on par with the amount the U.S. spends on defense as a percentage of their annual budgets.

NATO Secretary General Mark Rutte said in his opening address at the Hague, ‘For too long, one ally, the United States, carried too much of the burden. That changes today.’

Why it Matters

If fulfilled, the defense spending increase for NATO members would almost double their current allocations. Previously, NATO countries had set a target of 2% of their GDP for spending on defense, and the new agreement would raise that to 3.5%. 3.5% is roughly what the United States spends on defense as a percentage of its yearly GDP. 

Poland has been at the forefront of military spending increases since the Russian invasion of Ukraine. Because Poland shares a border with Ukraine and has a long history with Russia, Poland most keenly feels the potential threat posed by an increasingly aggressive Russian military. The current government has set as its goal to make Poland’s military into the most powerful fighting force in Europe, an objective that if fulfilled would take years to achieve. 

While an increase in defense spending for NATO would likely put Europe on a path to being more self-reliant in terms of security, it is unlikely even by 2030 Europe’s military capabilities will equal those of the United States. Europe’s primary obstacle to a more robust defense is manpower, with fewer Europeans than ever serving in the military. Some NATO countries have compulsory service requirements for young men, but most do the minimum then exit the service. 

A boost in spending could help increase the manpower available to NATO members military forces by improving equipment and the quality of life for uniformed service members. Better quality of life for the armed forces could persuade more young people to choose to remain in the service even after their mandatory obligations had been fulfilled.

While much of the discussion at the NATO summit focused on the current situation in the Middle East, the unspoken potential threat by Russia loomed large over the proceedings. Without the threat from Russia there would be little reason for NATO members to need to boost their defense spending.

How it Affects You

While the agreement by NATO members to boost defense spending is a win for the Trump Administration, it is unlikely to result in the U.S. military significantly reducing its presence in Europe anytime soon. Even if the Russian threat diminished, which is unlikely, America’s military bases in Europe also act as conduits to operations in the Middle East.