NATO Leaders Adjust Spending Targets
On Wednesday, NATO leaders came to an agreement that sidestepped new spending targets, thanks to some carefully crafted language. This gives some countries, including Spain, Belgium, and Slovakia, a bit of leeway.
In their statement, the leaders didn’t specify “all allies.” Instead, they said, “We are committed to investing 5% of our GDP annually in core defense requirements and defense-related expenditures by 2035 to ensure our personal and collective obligations.”
Since taking office, President Trump has been urging NATO nations to allocate a certain percentage of their GDP to military spending. His aim has been to shift focus from European security to other regions like the Indo-Pacific and the Middle East.
As the largest contributor to NATO’s budget, the U.S. has been pushing for an increase from the previous 2% target set in 2014 to a more ambitious 5%. Yet, with nine of the 32 NATO countries still not meeting the 2% goal, this latest target feels a bit unrealistic.
NATO’s executive director, Mark Latte, hinted that he managed to meet Trump’s spending expectations through somewhat ambiguous diplomatic statements.
“For too long, one ally, the United States, has borne too much of the burden of this commitment, and that changes today,” he said after the NATO meeting.
“President Trump, dear Donald, you’ve made this shift possible. Your leadership has already brought in $1 trillion in additional spending from European allies since 2016. Today’s decision is expected to generate even more for our collective defense by balancing spending between America and its allies,” he added.
To work toward the 5% target by 2035, countries have agreed to distribute their spending among various categories, making it more achievable. Presently, 3.5% of GDP is allocated to “core defense spending,” which includes weapons and military equipment, while 1.5% is dedicated to related expenses.
A review set for 2029 is meant to assess security threats from Russia, particularly considering ongoing concerns in Ukraine and potential threats to ally nations if they choose to intervene.
However, some nations have expressed their reluctance to meet the new targets due to economic struggles, intensified by Trump’s global tariffs. Spain has been the most outspoken about this issue. Ahead of the NATO Summit, Spanish officials stated they wouldn’t be able to meet the “irrational” goals by 2035.
According to the Spanish government, “Not all allies are bound by a 5% target.”
Spanish Prime Minister Pedro Sanchez was even more direct, stating, “We’re not going to do that.” Madrid plans to allocate 2.1% of its GDP to defense, meeting NATO’s new capability standards but not exceeding that.
As of June 2024, Spain was reportedly spending less than 1.3% of its GDP on defense, according to NATO figures.
This stance from Spain drew Trump’s ire. He inaccurately stated that Spain was the “only country that doesn’t pay in full” and threatened to impose harsher trade conditions to make up the difference.
“I think Spain’s actions are terrible. They want to stay at 2%. I think that’s awful,” he remarked during a press briefing at the summit’s conclusion. “Their economy is doing well, but it could easily be jeopardized by unfavorable events.”
He also mentioned he would negotiate directly with Spain regarding trade, suggesting he would push for them to double their contributions, saying, “I’m serious about this.”
Other nations, such as Slovakia, have also indicated they won’t meet the 5% target, arguing for their right to set their own defense budgets.
Slovak Prime Minister Robert Fico mentioned in a post that he has “other priorities in the coming years beyond military spending.”
Belgium shared a similar sentiment, indicating they are “in roughly the same situation” as Spain and suggesting that if Spain interprets the terms in a certain way, others could as well.
Belgium’s officials allowed for the possibility of planning to increase spending from the current 1.3% GDP allocated to defense.
Additionally, Luxembourg’s Prime Minister, Roof Frieden, didn’t fully commit to the 5% goal, instead noting that his country aims to “enhance our collective efforts in the coming years.”
