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On the other hand, all the members hit the old spending target.
On the other hand, all the members hit the old spending target.
What is happening?
For the first time since 2014, all 32 NATO countries will hit the alliance’s longstanding goal of spending at least 2% of their GDP on defence in 2025.
The target, originally set over a decade ago, has become a key benchmark in the alliance’s push for greater military readiness.
A dramatic shift in military budgets
Just last year, more than 10 NATO nations were still falling short of the 2% benchmark.
But Russia’s 2022 invasion of Ukraine—and renewed pressure from the U.S.—has dramatically shifted defence priorities across Europe and North America.
The Trump Factor
U.S. President Donald Trump repeatedly urged European allies to increase their own defence spending. His demands, along with the changing security landscape, have contributed to a major increase in defence budgets across the alliance.
Three countries surpass NATO’s new goal
While all members will now meet the 2% minimum, only Poland (4.48%), Lithuania (4%), and Latvia (3.73%) currently exceed NATO’s new, more ambitious defence spending target of 3.5% of GDP.
3.5% by 2035
In June, NATO leaders agreed to a new goal: 3.5% of GDP on defence spending by 2035.
The aim is to better equip the alliance for current and future threats, well beyond the original 2% guideline.
5% for total security investment
The 3.5% goal is part of a wider strategy that calls for members to spend up to 5% of GDP on broader defence and security efforts.
This includes areas like cybersecurity, infrastructure upgrades, and logistics to support military operations.
Poland leads the pack
Poland has emerged as NATO’s top spender in relative terms.
With defence investment reaching nearly 4.5% of its GDP, it outpaces all other members in its push to modernize and reinforce its military posture.
Baltic states ramp up budgets
Following Poland’s lead, the Baltic states of Lithuania and Latvia have also committed significant portions of their economies to defence.
Both countries are well above the 3.5% threshold, underscoring their heightened security concerns near Russia.
Rutte: Spending must translate to strength
Speaking at a German ammunition plant, NATO Secretary General Mark Rutte praised rising budgets but warned that numbers alone aren’t enough.
“Cash alone doesn’t provide security,” he said. “Deterrence comes from the capability to fight potential enemies.”
From budgets to battlefield readiness
As NATO members pour more money into their militaries, the focus now shifts to how effectively those funds are used.
Building real capability—training, equipment, and infrastructure—will be key to meeting the alliance’s growing security challenges.
