NATO Summit 2025: The Allies Agree To Increase Defence Spending

NATO members, on June 25, pledged to increase spending on defence, saying the countries will now aim to spend five per cent of their GDP by 2035, three per cent more than its last-standing mark of two per cent. US President Donald Trump, who has been pushing his allies to increase defence spending, hailed the decision saying the additional money would be spent on “very serious” military hardware. 

Meeting at the Hague for the 34^th NATO summits, the members set a new target for defence spending. The target of five per cent will be split into two parts. Three and a half per cent for core military needs such as on troops, for hardware such as tanks and missiles, and an additional 1.5 per cent for “resilience pillars” such as cyber‑security, infrastructure, and allied supply chains. 

Trump’s Triumphant Return

US President Donald Trump’s criticism of NATO and his country’s allies and has caused doubts over American commitment to the alliance. Trump, on his first summit since his re-election, was met by NATO Secretary‑General Mark Rutte.

“An alliance stronger and fairer,” he proclaimed, explicitly crediting Trump for the new dynamic between NATO allies.

Trump, though he had suggested that NATO Article Five’s meaning could be “flexible,  in turn, reiterated that America was a steadfast NATO member. 

Article Five is the tenant on which NATO was built: "an attack on one is an attack on all"

An Uneasy Union

Beneath the unity, there is unease simmered. It is unlikely that many of the European economies will be able to meet the increased defence spending quotas without borrowing from or slashing public services. 

However, Italy’s Prime Minister Giorgia Meloni said that the meeting offers “total flexibility” for the countries to pace out their spending, saying that “not a single euro” would be diverted from existing domestic programmes 

Even before the summit, Spain had tried to get an exemption, citing its welfare economy would not be able to commit to the five per cent ceiling on defence spending. Trump had earlier said that reluctant to commit to the 5 percent ceiling and intent on guarding its welfare model.

Spanish Prime Minister Pedro Sanchez had reportedly sent a letter to NATO chief Mark Rutte voicing concern over suggestions to meet the target increase.

“Committing to a five per cent target would not only be unreasonable but also counterproductive because it would move Spain further away from optimal spending and would hinder the EU’s ongoing efforts to strengthen its security and defence ecosystem,” he said.

In response, Trump lashed out at Spain saying the United States will make Madrid “pay twice as much” for a trade deal after its refusal to meet a NATO defence spending targets. 

“There’s a problem with Spain. Spain is not agreeing, which is very unfair to the rest of them, frankly,” said Trump.