NATO Allies Meet 2% Defence Spending Target After Years of Pressure

All 32 members of NATO are set to meet the alliance’s longstanding target of spending at least 2% of their GDP on defence by 2025. This milestone comes more than a decade after the target was first established and follows significant pressure from former US President Donald Trump, who insisted on increased defence expenditure among allies.

Recent estimates from NATO indicate that the eight lowest spending nations—Croatia, Portugal, Italy, Canada, Belgium, Luxembourg, Slovenia, and Spain—have all achieved the 2% threshold. The United Kingdom, a consistent contributor, is projected to spend 2.4% of its GDP on defence in 2025, an increase from 2.33% in 2024.

In terms of spending as a percentage of GDP, the Baltic states, perceived as most vulnerable to Russian aggression, lead the alliance. Poland tops the list with a defence expenditure of 4.48%, followed by Lithuania at 4%, Latvia at 3.73%, and Estonia at 3.38%. Among these countries, only Poland, Lithuania, and Latvia meet the new NATO benchmark.

The United States remains the largest spender in absolute terms but ranks sixth in spending relative to GDP, at 3.22%. The UK is positioned 12th, with other nations such as Greece, Finland, Sweden, and The Netherlands also surpassing it.

NATO’s statement highlighted the progress made since 2014, stating, “In 2025, all allies are expected to meet or exceed the pre-summit target of investing at least 2% of GDP in defence, compared to only three allies in 2014.” The alliance noted that over the last decade, European members and Canada have increased their combined defence investment from 1.43% of GDP in 2014 to a projected 2.02% in 2024. This translates to over USD 485 billion (adjusted to 2021 prices) in defence spending.

The 2% target was first introduced as a guideline in 2006 but was formally pledged following Russia’s annexation of Crimea in 2014. Earlier this year, NATO members agreed on a new benchmark to reach a spending goal of 5% of GDP by 2035, which will be divided into 3.5% for “core defence” and 1.5% for related areas such as infrastructure and cybersecurity.

Former President Trump had previously warned that he would reconsider US defence commitments if NATO allies did not contribute adequately to their own security, calling it “common sense.” As NATO continues to adapt to evolving global threats, the increased defence spending reflects a broader commitment to collective security in an uncertain world.