Close Menu
World Economist – Global Markets, Finance & Economic Insights
  • Home
  • Economist Impact
    • Economist Intelligence
    • Finance & Economics
  • Business
  • Asia
  • China
  • Europe
  • Economy
  • USA
    • Middle East & Africa
    • Highlights
  • This week
  • World Economy
    • World News
What's Hot

U.S. Stocks Rise Amid Ongoing Developments in the Middle East

June 23, 2025

EU foreign policy chief calls for ‘dose of realism’ in China relations

June 23, 2025

We’re adding a new name to the Bullpen. It’s a cheap way to play the AI boom

June 23, 2025
Facebook X (Twitter) Instagram
Monday, June 23
Facebook X (Twitter) Instagram
World Economist – Global Markets, Finance & Economic Insights
  • Home
  • Economist Impact
    • Economist Intelligence
    • Finance & Economics
  • Business
  • Asia
  • China
  • Europe
  • Economy
  • USA
    • Middle East & Africa
    • Highlights
  • This week
  • World Economy
    • World News
World Economist – Global Markets, Finance & Economic Insights
Home » NATO leaders are set to agree a historic defense spending pledge, but the hike won’t apply to all
Europe

NATO leaders are set to agree a historic defense spending pledge, but the hike won’t apply to all

adminBy adminJune 23, 2025No Comments4 Mins Read
Share Facebook Twitter Pinterest Copy Link LinkedIn Tumblr Email VKontakte Telegram
Share
Facebook Twitter Pinterest Email Copy Link
Post Views: 3


THE HAGUE, Netherlands (AP) — NATO leaders are expected to agree this week that member countries should spend 5% of their gross domestic product on defense, except the new and much vaunted investment pledge will not apply to all of them.

Spain has reached a deal with NATO to be excluded from the 5% of GDP spending target, while President Donald Trump said the figure shouldn’t apply to the United States, only its allies.

In announcing Spain’s decision Sunday, Prime Minister Pedro Sánchez said the spending pledge language in NATO’s final summit communique — a one-page text of perhaps half a dozen paragraphs — would no longer refer to “all allies.”

It raises questions about what demands could be insisted on from other members of the alliance like Belgium, Canada, France and Italy that also would struggle to hike security spending by billions of dollars.

On Friday, Trump insisted the U.S. has carried its allies for years and now they must step up. “I don’t think we should, but I think they should,” he said. “NATO is going to have to deal with Spain.”

Trump also branded Canada “a low payer.”

NATO’s new spending goals

The 5% goal is made up of two parts. The allies would agree to hike pure defense spending to 3.5% of GDP, up from the current target of at least 2%, which 22 of the 32 countries have achieved. Money spent to arm Ukraine also would count.

A further 1.5% would include upgrading roads, bridges, ports and airfields so armies can better deploy, establishing measures to counter cyber and hybrid attacks and preparing societies for future conflict.

The second spending basket is easy for most nations, including Spain. Much can be included. But the 3.5% on core spending is a massive challenge.

Last year, Spain spent 1.28% of GDP on its military budget, according to NATO estimates, making it the alliance’s lowest spender. Sánchez said Spain would be able to respect its commitments to NATO by spending 2.1% of GDP on defense needs.

Spain also is among Europe’s smallest suppliers of arms and ammunition to Ukraine, according to the Kiel Institute, which tracks such support. It’s estimated to have sent about 800,000 euros ($920,000) worth of military aid since Russia invaded in 2022.

Beyond Spain’s economic challenges, Sánchez has other problems. He relies on small parties to govern and corruption scandals have ensnared his inner circle and family members. He is under growing pressure to call an early election.

Why the spending increase is needed

There are solid reasons for ramping up spending.

The Europeans believe Russia’s war on Ukraine poses an existential threat to them. Moscow has been blamed for a major rise in sabotage, cyberattacks and GPS jamming incidents. European leaders are girding their citizens for the possibility of more.

The alliance’s plans for defending Europe and North America against a Russian attack require investments of at least 3%, NATO experts have said. All 32 allies have endorsed these. Each country has been assigned “capability targets” to play its part.

Spanish Foreign Minister José Albares said Monday that “the debate must be not a raw percentage but around capabilities.” He said Spain “can reach the capabilities that have been fixed by the organization with 2.1%.”

Countries much closer to Russia, Belarus and Ukraine all have agreed to reach the target, as well as nearby Germany, Norway, Sweden and the Netherlands, which is hosting the two-day summit starting Tuesday.

The Netherlands estimates NATO’s defense plans would force it to dedicate at least 3.5% to core defense spending. That means finding an additional 16 billion to 19 billion euros ($18 billion to $22 billion).

Setting a deadline

It’s not enough to agree to spend more money. Many allies haven’t yet hit an earlier 2% target that they agreed in 2014 after Russia annexed Ukraine’s Crimean Peninsula. So an incentive is required.

The date of 2032 has been floated as a deadline. That is far shorter than previous NATO targets, but military planners estimate Russian forces could be capable of launching an attack on an ally within five to 10 years.

The U.S. insists it cannot be an open-ended pledge and a decade is too long. Still, Italy says it wants 10 years to hit the 5% target.

The possibility of stretching that period to 2035 also has been on the table for debate among NATO envoys. An official review of progress could also be conducted in 2029, NATO diplomats have said.

___

Suman Naishadham in Madrid contributed to this report.



Source link

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email Telegram Copy Link
admin
  • Website

Related Posts

Europe

Europe tries to revive diplomacy after US strikes on Iran nuclear sites

June 23, 2025
Europe

UK government says it will ban pro-Palestinian group after activists broke into military base

June 23, 2025
Europe

EU finds ‘indications’ Israel is breaching key agreement with its actions in Gaza

June 23, 2025
Europe

More evacuation orders issued as firefighters battle major wildfire on the Greek island of Chios

June 23, 2025
Europe

Russian attacks on Ukraine kill at least 5 and injure over a dozen

June 23, 2025
Europe

NATO summit could be historic or divided

June 23, 2025
Add A Comment
Leave A Reply Cancel Reply

Editors Picks

Bank of England’s Bailey defends bond programme after Reform UK criticism – Markets

June 23, 2025

Most Gulf markets in black despite regional conflict – Markets

June 23, 2025

Dost Steels to raise Rs4.45bn via rights issue to fund billet production – Business & Finance

June 23, 2025

Pakistan’s PET bottle maker to install 2MW solar system – Business & Finance

June 23, 2025
Latest Posts

PSX hits all-time high as proposed ‘neutral-to-positive’ budget well-received by investors – Business

June 11, 2025

Sindh govt to allocate funds for EV taxis, scooters in provincial budget: minister – Pakistan

June 11, 2025

US, China reach deal to ease export curbs, keep tariff truce alive – World

June 11, 2025

Subscribe to News

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Recent Posts

  • U.S. Stocks Rise Amid Ongoing Developments in the Middle East
  • EU foreign policy chief calls for ‘dose of realism’ in China relations
  • We’re adding a new name to the Bullpen. It’s a cheap way to play the AI boom
  • Why Wall Street is actually going higher after the U.S. bombed Iran
  • The Dollar Rises as Markets Await Iran’s Response to U.S. Strikes

Recent Comments

No comments to show.

Welcome to World-Economist.com, your trusted source for in-depth analysis, expert insights, and the latest news on global finance and economics. Our mission is to provide readers with accurate, data-driven reports that shape the understanding of economic trends worldwide.

Latest Posts

U.S. Stocks Rise Amid Ongoing Developments in the Middle East

June 23, 2025

EU foreign policy chief calls for ‘dose of realism’ in China relations

June 23, 2025

We’re adding a new name to the Bullpen. It’s a cheap way to play the AI boom

June 23, 2025

Subscribe to Updates

Subscribe to our newsletter and never miss our latest news

Subscribe my Newsletter for New Posts & tips Let's stay updated!

Archives

  • June 2025
  • May 2025
  • April 2025
  • March 2025
  • February 2025
  • January 2025
  • December 2024
  • June 2024
  • October 2022
  • March 2022
  • July 2021
  • February 2021
  • January 2021
  • November 2019
  • April 2011
  • January 2011
  • December 2007
  • July 2007

Categories

  • AI & Tech
  • Asia
  • Banking
  • Business
  • Business
  • China
  • Climate
  • Computing
  • Economist Impact
  • Economist Intelligence
  • Economy
  • Editor's Choice
  • Europe
  • Europe
  • Featured
  • Featured Business
  • Featured Climate
  • Featured Health
  • Featured Science & Tech
  • Featured Travel
  • Finance & Economics
  • Health
  • Highlights
  • Markets
  • Middle East
  • Middle East & Africa
  • Middle East News
  • Most Viewed News
  • News Highlights
  • Other News
  • Politics
  • Russia
  • Science
  • Science & Tech
  • Social
  • Space Science
  • Sports
  • Sports Roundup
  • Tech
  • This week
  • Top Featured
  • Travel
  • Trending Posts
  • Ukraine Conflict
  • Uncategorized
  • US Politics
  • USA
  • World
  • World & Politics
  • World Economy
  • World News
© 2025 world-economist. Designed by world-economist.
  • Home
  • About Us
  • Advertise With Us
  • Contact Us
  • DMCA
  • Privacy Policy
  • Terms & Conditions

Type above and press Enter to search. Press Esc to cancel.