NATO Agrees to Increased Defense Spending Goal, Sparking Praise and Criticism

At a recent meeting, NATO leaders reached an agreement to increase defense spending, setting a new goal of 5% of each member country's economic output by the year 2035. This represents a significant increase from the previous target of 2%.

President Trump expressed approval of the new defense agreement, describing it as a significant achievement for the United States. He has consistently urged NATO allies to increase their defense spending, emphasizing the need for a more equitable distribution of financial responsibility within the alliance.

In 2024, the average defense spending among NATO member countries was 2.61% of their gross domestic product (GDP). However, there is considerable variation in spending levels across the alliance. According to NATO estimates, the majority of the 32 members met or surpassed the 2% benchmark, while a smaller number fell short.

Poland was estimated to have the highest defense spending as a percentage of its GDP, exceeding 4%. Estonia and Latvia followed, each allocating approximately 3.4%. The United States spent an estimated 3.2% of its GDP on defense.

Several countries did not meet the previous 2% target, which was established at a summit in 2014. Spain allocated the smallest share of its GDP to defense, at 1.2%. President Trump criticized Spain's spending level during the summit. Spain's Prime Minister stated that the country would not meet the new 5% goal, considering the 2% target sufficient.

Since the establishment of the defense spending targets in 2014, the average spending among member states has increased. However, these targets are not legally binding. Some analysts suggest that the wording of the new 5% agreement may allow certain allies to avoid meeting the new goal.