WASHINGTON (TNND) — Leaders of NATO agreed to significantly ramp up member nations’ spending on military over the next 10 years last week in a major win in a years-long push by President Donald Trump over complaints the alliance was taking advantage of the United States.
The alliance announced last week that members had agreed to a new defense spending goal of 5% of each country’s economic output by 2035, more than doubling the previous figure of 2%. Trump hailed the agreement as a “monumental win for the United States.”
The 2035 is an ambitious timeline that includes spending 3.5% on traditional military needs like weapons and troops and the other 1.5% on “military adjacent” projects. No countries in the alliance, including the U.S., are close to reaching 5% currently.
Russia’s invasion of Ukraine and the ongoing war has prompted new urgency among European allies to increase military spending and reduce its reliance on the U.S., but there is still a long way to go for many countries to meet the 5% target by 2035.
According to NATO data, 22 of its 32 members are meeting or exceeding the 2% benchmark. Nine have not yet hit 2% and Iceland does not factor into the target because it doesn’t have armed forces.
A look at where defense spending stands among NATO:
BIGGEST SPENDERS
Measured as a portion of GDP, Poland is NATO’s biggest military spender and is the only country in the alliance to spend more than 4%. Estonia also surpasses the U.S. by GDP at more than 3.4%.
The U.S. spends 3.2% of its GDP on defense, but is the biggest by dollar value with the world’s biggest economy. America also has a major military footprint around the world with bases and troops stationed in a wide variety of countries.
By dollar terms, the U.S. spends nearly ten times as much as the next biggest country at $967 billion, compared to Germany’s $97 billion.
The Trump administration has questioned whether the U.S. will continue to have its current military presence in Europe and suggested it will not last forever, which has been part of the push to get other countries to increase spending on the alliance.
Latvia and Greece also surpassed the 3% threshold as of last year, according to NATO.
MIDDLE OF THE PACK
A majority of members in the 32-nation alliance fall somewhere between the target of 2% and approaching 3% GDP. Lithuania is at the high end of the middle at 2.85% GDP, while the Slovak Republic is meeting the spending goal at exactly 2%.
Other major countries in the 2% range include Finland, Denmark, the U.K., Germany and France. It has been a priority for many of the country’s leaders to continue to ramp up military spending amid the war in Ukraine in a broader push for Europe to take more control of its own security objectives and to deter any further Russian aggression.
But many European countries are also facing a major test in gathering the political power to further ramp up spending to hit the 5% target with attitudes among their citizens varying widely. It will likely be difficult for many to convince the public it is a worthwhile investment to spend additional billions in taxpayer funds to protect against a threat that is not yet apparent to them in Russia.
NOT REACHING ORIGINAL TARGET
Nine countries are not reaching the level of 2% of GDP the alliance agreed to in 2014, giving them the longest road to ramping up to the new target over the next decade.
Croatia, Portugal and Italy spent 1.5% of GDP or higher as of 2024 but have not reached the 2% target.
Canada sat at 1.37% as of last year while Belgium, Luxembourg and Slovenia each spent around 1.3% GDP.
Spain spent the least on its defense as of 2024 at nearly 1.3% GDP and has said it will not adhere to the 5% guideline. Spanish Prime Minister Pedro Sánchez said prior to the summit that the country would not budge on its current target of 2.1% that it is not yet meeting, calling it “sufficient” and “realistic.”
Spain’s refusal to adhere to the new target has frustrated Trump, who threatened to make the country pay more during trade negotiations instead. It’s unclear exactly how Spain could be targeted in trade talks as a member of the European Union that acts as a bloc and is engaged in discussions with the White House.
“Spain is terrible, what they’ve done,” Trump said last week. “We’re negotiating with Spain on a trade deal; we’re going to make them pay twice as much. I’m actually serious about that.”