In a landmark decision, NATO allies on Wednesday agreed to a sweeping new defense investment plan, pledging to raise their total defense and security-related spending to 5% of GDP by 2035 — more than doubling the alliance’s current 2% benchmark.
The announcement was made at the NATO summit in The Hague, where leaders issued a joint declaration affirming their unity in the face of growing global security challenges, especially from Russia and terrorism. The declaration describes Russia as a “long-term threat to Euro-Atlantic security” and terrorism as a “persistent” danger.
Under the new commitment, NATO countries will allocate at least 3.5% of GDP to core military defense, while up to 1.5% will go toward security-related areas like infrastructure protection and strengthening the alliance’s defense industrial base.
“This is a historic milestone,” said NATO Secretary General Mark Rutte. “Europe and Canada must step up significantly, and that’s exactly what this pledge represents. It also reflects the urgency of building defense production capacity on both sides of the Atlantic.”
Rutte emphasized that NATO military aid to Ukraine this year is projected to exceed last year’s $58 billion — underscoring the alliance’s long-term support for Kyiv amid the ongoing war with Russia.
U.S. President Donald Trump, also speaking at the summit, welcomed the funding boost but urged allies to focus their increased budgets on military hardware. Trump reiterated his stance that NATO members must “take up the burden” of defending Europe and suggested that Russian President Vladimir Putin may harbor ambitions beyond Ukraine.
.@POTUS: “A major focus of our conversations at the Summit was the need of other NATO members to take up the burden of the defense of Europe… In a very historic milestone, this week, the NATO allies committed to dramatically increase their defense spending to that 5% of GDP.” pic.twitter.com/RI7yUf9wx9
— Rapid Response 47 (@RapidResponse47) June 25, 2025
Trump’s long-standing demand for increased European and Canadian contributions to NATO appears to have played a significant role in shaping this bold new strategy. The 5% target, unprecedented in NATO’s history, aims to future-proof the alliance amid emerging geopolitical flashpoints.
The summit also took place against the backdrop of heightened tensions in the Middle East. Rutte briefly commented on the U.S. strike on Iran, calling it a “massive blow” to Tehran. However, the main focus remained squarely on reinforcing NATO’s posture in Eastern Europe and supporting Ukraine.
In the declaration, NATO reiterated its unwavering commitment to Article 5 — the principle that an attack on one member is considered an attack on all. This reaffirmation comes after growing uncertainty in recent years about U.S. commitment to the alliance’s founding principles.
