Background
NATO allies agreed in 2014 to spend at least 2% of GDP on defence by 2024, a benchmark pushed strongly by Washington, particularly under former U.S. President Donald Trump. Russia’s full-scale invasion of Ukraine in 2022 further accelerated spending across the alliance. At a June 2025 summit in The Hague, NATO leaders agreed to raise the bar: 3.5% of GDP on defence by 2035, as part of an eventual 5% goal covering broader security investments.
What Happened
According to NATO data released Thursday, as reported by Reuters,
For the first time, all 32 NATO members are projected to meet the 2% target in 2025.
In 2024, more than 10 allies were still below the threshold.
Seven members are just at the minimum 2.0%, with several only slightly above it.
Poland (4.48%), Lithuania (4%), and Latvia (3.73%) are the only members currently above the new 3.5% goal.
Why It Matters
Alliance Unity: Universal compliance with the 2% benchmark signals unprecedented alignment on defence after years of criticism.
U.S. Demands: Meeting targets addresses longstanding American concerns over “burden sharing.”
Future Pressure: The new 3.5% and eventual 5% goals will test allies’ fiscal capacity and political will, especially as domestic budgets tighten.
Capability Gap: Higher spending doesn’t automatically translate into readiness—questions remain about converting funds into real military strength.
Stakeholder Reactions
Mark Rutte (NATO Secretary General): Speaking at a new Rheinmetall ammunition factory in Unterluess, Germany, he praised increased spending but cautioned:
“Cash alone doesn’t provide security. Deterrence doesn’t come from 5%. Deterrence comes from the capability to … fight potential enemies.”
What’s Next
NATO allies have until 2035 to meet the 3.5% target and will need to prepare for the broader 5% investment benchmark.
Focus will likely shift to how funds are spent: procurement of advanced weapons, military mobility infrastructure, and cyber defence.
Pressure from Washington will remain strong, especially with ongoing war in Ukraine and NATO’s eastern flank under threat.
