NATO Approves Raising Defense Spending to 5% of GDP

The leaders of the North Atlantic Treaty Organization have committed to doubling annual defense spending to 5% of GDP, with a portion of these funds contributing to Ukraine’s defense capabilities.

This political statement was announced in the declaration following the NATO summit in The Hague.

Alliance members agreed to reach an annual defense and security spending level of 5% of GDP by 2035, citing the long-term threat posed by Russia as the justification for the increase.

At least 3.5% of GDP will be dedicated to core defense priorities, while an additional 1.5% will be invested in safeguarding critical infrastructure, enhancing cybersecurity, driving innovation, strengthening civil society resilience, and developing the defense-industrial base.

National defense expenditures for each country will also account for direct investments in Ukraine’s defense capabilities and its defense industry. The participants underscored that Ukraine’s security is a vital and inseparable part of NATO’s collective security.

An agreement was also reached to strengthen transatlantic cooperation in the defense industry. The Alliance plans to remove barriers to arms trade between member countries, encourage the adoption of cutting-edge technologies and innovations, and deepen partnerships to enhance collective security capabilities.

It is essential to note that the Hague Declaration does not formally obligate signatories to take direct action; rather, it serves as a political statement that symbolizes the intentions of the governments. Specific budget reforms and legislative changes still require individual approval by each country at the national level.

Currently, defense spending among most NATO member countries varies around 2.5% of GDP. However, there are exceptions—for example, Spain has opposed collective increases in spending, maintaining one of the lowest rates at 1.3% of GDP.

Meanwhile, the main driver behind increased defense investments remains the United States, which spends about 3.4% of its GDP, amounting to approximately $967–968 billion in 2024. Poland leads in terms of percentage, annually allocating 4.1–4.12% of its GDP, or roughly $35 billion.

Militarnyi previously reported that Germany plans to increase its defense budget to €153 billion by 2029, or 3.5% of its gross domestic product.

Germany’s defense budget for 2025 is expected to reach €86 billion, equivalent to 2.4% of the country’s GDP. The planned increase would bring it to the highest level since German reunification.

To support the boost in spending, Chancellor Friedrich Merz’s government has temporarily suspended the constitutional “debt brake,” allowing for borrowing beyond the standard 1% of GDP cap.