As NATO leaders prepare to endorse a significant increase in defense spending, targeting five percent of GDP, President Donald Trump is reiterating his demand for allies to contribute more. He insists the US should be exempt from the new target, while Spain has already secured a deal to be excluded from the full five percent, highlighting the internal complexities of achieving universal financial commitment within the alliance.
The proposed five percent target is designed with two components: 3.5 percent dedicated to core military expenditures, a considerable jump from the current two percent, and an additional 1.5 percent for critical infrastructure improvements, cyber defense, and societal preparedness. The 3.5 percent for pure defense spending is expected to be a major challenge for many nations, especially Spain, which currently lags significantly with only 1.28 percent of its GDP allocated to its military.
Spain’s Prime Minister, Pedro Sánchez, announced his country’s successful negotiation for an exclusion, clarifying that the final NATO communique will no longer state that the target applies to “all allies.” This decision could encourage other financially constrained members, such as Italy and Canada, to seek similar waivers. Trump’s continued criticism of allied contributions, including his branding of Canada as a “low payer,” underscores the ongoing debate over burden-sharing.
The impetus for this substantial increase in defense spending stems from a shared concern among European leaders about Russia’s aggressive actions in Ukraine and its broader implications for regional security. NATO experts have indicated that comprehensive defense plans against a Russian attack require investments of at least three percent of GDP. While a 2032 deadline has been floated for achieving the five percent target, the feasibility and enforcement of this timeline remain subjects of ongoing negotiation.