NATO Allies Divided Over Proposed 5% Defence Budget Target

Leaders from NATO countries, including US President Donald Trump and UK Prime Minister Keir Starmer, are currently holding high-level talks aimed at increasing military investment across the alliance even as a significant number of member nations still fall short of the current 2% GDP goal.

A new proposal introduced at the summit urges allies to boost defence spending to 5% of their national output, covering both military readiness and broader security measures. The suggested increase marks a major shift in NATO’s posture, driven by escalating global tensions, particularly with Russia.

However, recent figures reveal that nine countries are yet to hit the 2% benchmark, with Spain at the bottom of the list spending just 1.2% of its GDP in 2024.

President Trump, who has long criticized allies he sees as not pulling their weight, called out Spain for its poor contribution. He previously stated that nations falling short might not be defended and has said he would “encourage” rivals to take liberties with such countries.

The issue reflects more than just economics, it also reveals strategic divides across NATO’s geography. According to defence specialists, countries located closer to Russia, especially in the northern and eastern parts of the alliance, have increased their defence budgets more aggressively than their southern counterparts.

“The allies who feel the most immediate threat from Russia are those investing more,” Ellehuus stated.

Despite mounting pressure, the 2% goal remains a voluntary target, not a legal requirement. Yet political influence, especially from the United States, has often compelled nations to act. A former NATO official observed, “Nobody wants to be called a bad ally.”

Between 2014 and 2024, all NATO members have grown their military budgets. Today, the average spending across non-U.S. member states has reached the 2% mark—up from 1.4% ten years ago.

Spanish Prime Minister Pedro Sánchez has pledged that his country will meet the 2% goal by 2025 and may even reach 2.1% before the end of this year. Still, he pushed back on the proposed 5% goal, calling it “incompatible with our worldview” and stating that Spain has secured an opt-out. Officials from Spain emphasized that buying the right equipment efficiently matters more than simply increasing the numbers.

“We didn’t see the need for large armed forces, instead focusing on disaster response,” explained Mario Saavedra, diplomatic correspondent for El Periódico. “But things are changing very fast.”

A number of other countries have committed to reaching the 2% threshold soon:

Canada, currently at 1.5%, aims to meet the requirement by March 2025.

Belgium is injecting an extra €4 billion this year to raise its share from 1.3% to 2%.

Portugal now plans to hit the mark four years earlier than initially projected.

Italy, which was at 1.5% last year, expects to reach 2% this year.

President Trump has often taken credit for pushing NATO allies to invest more in defence. NATO’s Secretary-General Mark Rutte acknowledged Trump’s impact—something Trump reposted on his Truth Social account, writing, “Europe is going to pay in a BIG way, as they should, and it will be your win.”

When it comes to raw spending, the United States remains far ahead of the rest, contributing $935 billion in 2024, equal to 3.2% of its GDP and more than the rest of NATO combined.

Among European members, Poland stood out with 4.1% of its GDP going to defence, followed by Estonia and Latvia, each at 3.4%.

As NATO leaders seek common ground in a time of uncertainty, the tension between urgent spending demands and national preferences continues to challenge the alliance’s unity.