NATO’s renewed focus on military investment follows Moscow’s annexation of Crimea in 2014 and its full-scale invasion of Ukraine in 2022.
Photo : AP
NATO confirmed on Thursday that all 31 allies will spend at least 2% of GDP on defence in 2025, a first since the target was set at the 2014 Wales Summit. The shift reflects both security threats from Russia’s war in Ukraine and sustained pressure from the United States for Europe to shoulder a larger share of the burden.
“Over the past decade, European allies and Canada have steadily increased their collective investment in defence,” NATO said in its published defence expenditure data. “In 2025, all allies are expected to meet or exceed the pre-summit target of investing at least 2% of GDP.”
Eastern Flank Nations Push Beyond 3.5%
Three NATO countries: Poland, Lithuania and Latvia, are on track to hit a more ambitious 3.5% defence-spending goal agreed at a June 2024 summit in the Netherlands. That meeting also saw allies pledge to spend 5% of GDP on security, including 1.5% for resilience and readiness measures such as infrastructure protection and industrial base strengthening.
Poland leads the pack, with around 54% of its defence budget earmarked for equipment purchases, the highest proportion among NATO allies. Nine countries, including Germany and Poland, now have laws or political agreements enshrining the 2% defence floor.
Spending Doubles in Six Years
European NATO allies and Canada are expected to spend $607 billion on defence in 2025, up from $516 billion in 2024 and $419 billion in 2023. That figure has more than doubled in just six years, according to NATO’s estimates. Including the United States, the alliance’s total defence expenditure will reach $1.6 trillion in 2025.
As recently as 2022, only seven countries met the 2% benchmark. That number rose to 18 in 2024 before expanding to the full alliance this year. The latest data excludes Iceland, which does not have armed forces.
Reshaping NATO’s Security Landscape
NATO’s renewed focus on military investment follows Moscow’s annexation of Crimea in 2014 and its full-scale invasion of Ukraine in 2022. While Washington’s criticism of “free-riding” allies during the Trump administration spurred debate, the Ukraine war has made higher defence spending politically unavoidable across Europe.
With Europe’s security environment reshaped, analysts say NATO’s ability to sustain collective defence at scale will depend not just on meeting the 2% threshold, but also on how resources are allocated, from equipment to readiness.