Greece is one of NATO’s top defense spenders. Here’s why
How did your country report this? Share your view in the comments.
Diverging Reports Breakdown
NATO Summit… ended before it began with the deal on defense spending – Trump at the center of attention
The main issue — the increase of member states’ defense spending to 5% of GDP by 2035 — has already been decided. There is no precedent for a summit lasting just three hours, though Secretary-General Mark Rutte has arranged a series of side events starting Monday. The reason for the drastically reduced duration is clear: to avoid boring its star player, U.S. President Donald Trump, who set foot on European soil for the first time during his second term. This time, Trump comes as a… peacemaker, speaking kindly of his “European friends” and pleased that NATO members are agreeing to his long-standing request to boost their contributions to collective defense — a target that more than doubles the existing 2% benchmark. Trump sparked particular discussion regarding his reference to NATO’s Article 5 — the collective defense clause in case of an attack on a member state. He is highly sought after for meetings and is expected to see some leaders face-to-face, including his old acquaintance Recep Tayyip Erdoğan.
This year’s NATO Summit in The Hague comes with certain peculiarities. The main issue — the increase of member states’ defense spending to 5% of GDP by 2035 — has already been decided, with Spain as the sole exception, having requested and secured flexibility.
There is also no precedent for a summit lasting just three hours, though Secretary-General Mark Rutte has arranged a series of side events starting Monday. The reason for the drastically reduced duration is clear: to avoid boring its star player, U.S. President Donald Trump, who set foot on European soil for the first time during his second term.
Until now, Mr. Trump had limited himself to sending his vice president, J.D. Vance, who effectively “torpedoed” the Munich Security Conference last February, causing unrest with his signals toward the Alternative for Germany party in the context of the German federal elections. This time, Trump comes as a… peacemaker, speaking kindly of his “European friends” and pleased that NATO members are agreeing to his long-standing request to boost their contributions to collective defense — a target that more than doubles the existing 2% benchmark.
The American president, the undisputed star of the day, arrived in the Netherlands last night just after 20:30, heading straight from Amsterdam’s Schiphol Airport to Huis ten Bosch Palace. Without his wife, Mr. Trump is the only leader hosted by the royal family — King Willem-Alexander and Queen Máxima.
Meetings and Article 5
There is no doubt Trump will make a “show of strength” at the Summit, which will begin with leaders’ statements shortly after 10:00 Greek time and conclude by 15:00. He is highly sought after for meetings and is expected to see some leaders face-to-face, including his old acquaintance Recep Tayyip Erdoğan, with whom he was side-by-side at last night’s dinner photo. He is also expected to meet Volodymyr Zelensky, who is not participating in the official part of the Summit but will remain in The Hague for the one-on-one meeting he requested and secured with Trump. Some European leaders have already met with Trump, and interestingly, Italy’s Prime Minister Giorgia Meloni — who shares a close political and personal relationship with him — sat next to him at the dinner.
Arriving at the Summit, despite the… aura of peace in the Middle East, Trump sparked particular discussion regarding his reference to NATO’s Article 5 — the collective defense clause in case of an attack on a member state. Asked if the U.S. remains committed to Article 5, Trump responded enigmatically: “It depends on the definition. There are several definitions of Article 5. But I am committed to being their friend and I am committed to saving lives. I am committed to life and security,” he told reporters accompanying him, clarifying that he would provide a precise definition at the Summit rather than at the back of a plane.
The Greek position
In this context, Prime Minister Mitsotakis, who also arrived in The Hague last night, approaches the issue of increased defense spending comfortably. Mitsotakis has long acknowledged the validity of Trump’s point — raised during his first term — though the Ukraine war has practically changed the facts on the ground.
In his intervention today at the Summit, Mitsotakis is expected to stress Greece’s stability and reliability as an ally, having met NATO’s 2% GDP defense spending pledge even during the difficult years of the economic crisis, significantly contributing to the Alliance’s capabilities in a critical region for regional and international security. Mitsotakis will refer to recent developments in the Middle East and emphasize that Greece spends 3% of its GDP on defense as it faces multiple security challenges — making it part of NATO’s core group exceeding the current 2% commitment and ranking 5th among NATO members in defense spending as a share of GDP. The Prime Minister will also mention the country’s 12-year, €25 billion armament program.
Mitsotakis is expected to meet Canadian Prime Minister Mark Carney on the sidelines, and possibly other leaders, though no official meeting is planned with Turkish President Erdoğan.
‘Time to get serious on defense’: A moment of truth for NATO as leaders seek unity on spending hike
NATO will release a joint statement on collective defense spending hike on Wednesday. U.S. President Donald Trump appeared to question NATO’s central tenet of collective defense (Article 5) Secretary General Mark Rutte has been looking to reassure allies that Washington won’t abandon the bloc. Spain, the lowest spender as a share of GDP in the alliance, has already stuck its head above the parapet to risk Trump’s ire by saying a spending hike to 5% of GDP was “unreasonable” Sweden’s Prime Minister Ulf Kristersson said he couldn’t “rule out any kind of problem. I think you can’t” although he added that “this is the time not to take chances. This is time to get serious on defense” and “this will absolutely be our, our, message on tomorrow’s [Wednesday’s meeting] meeting,” said Estonia’s defense minister, Hanno Pevkur, on the sidelines of the summit.
It’ll be a moment of truth for NATO on Wednesday when the Western military alliance releases a joint statement on a heavily pushed and previewed collective defense spending hike. Allies have been corralled, cajoled and pressured to hike their defense expenditure from 2% to 5% of each member nation’s gross domestic product by 2035, even as some have struggled to meet the lower target. It’s widely expected that the bloc’s 32 member states will green light the hike on Wednesday — NATO ambassadors have already agreed in principle — but action, and the deadline, could still slip. The U.S.’ commitment to the alliance is also in focus, after years of U.S. President Donald Trump’s frustration at Canadian and European allies not pulling their weight when it comes to defense contributions. As he jetted into the summit late on Tuesday, Trump appeared to question NATO’s central tenet of collective defense (Article 5) that states that an attack on one member is an attack on all. “There’s numerous definitions of Article 5. You know that, right?” Trump told reporters on Air Force One. “But I’m committed to being their friends, you know, I’ve become friends with many of those leaders, and I’m committed to helping them.”
watch now
The military coalition’s Secretary General Mark Rutte has been looking to reassure allies that Washington won’t abandon the bloc, telling the summit that “there is total commitment by the U.S. president and the U.S. senior leadership to NATO.” “However, it comes with an expectation. And the expectation is that we will finally deal with this huge irritant, which is that we are not spending enough as Europeans and Canadians,” Rutte said Tuesday.
‘Time to get serious’
NATO members pledged back in 2014 to spend 2% of GDP on defense, but some countries, such as Canada and Spain, have struggled to meet that threshold. Other member states, particularly those on the northern and eastern flanks of the bloc and closer to adversary Russia — such as Poland and Estonia — have far exceeded this target.
Spain, the lowest spender as a share of GDP in the alliance, has already stuck its head above the parapet to risk Trump’s ire by saying a spending hike to 5% of GDP was “unreasonable,” reportedly seeking an opt-out from the new target. Madrid also wants more flexibility on how and by when it must raise its defense spending, as does Belgium, which hosts NATO’s headquarters. Italy has also voiced skepticism over the new target, saying it will only reach 2% this year, after last week openly questioning the point of the alliance. NATO’s Rutte said he “was not worried” that the likes of Spain would scupper the summit’s aims and his own considerable diplomatic efforts to persuade members to accept higher spending.
watch now
“Of course, these are difficult decisions, let’s be honest about that. Seven or eight countries at the start of this year, were not even at the 2% target …but now they’ve committed to doing it this year,” he told CNBC’s Steve Sedgwick at a press conference on Wednesday. “But you’re right, countries have to find the money. It’s not easy, these are political decisions, but at the same time, there’s absolute conviction with my colleagues at the table that, given the threat from Russia, given the international security situation, there is no alternative.”
Other heads of state, foreign and defense ministers told CNBC that they hoped allies would fall in line. Dutch Prime Minister Dick Schoof was in a bullish mood on Wednesday, telling CNBC that NATO “will deliver unity today,” but other European leaders could not rule out the possibility of a lack of consensus on the ambitious spending target.
watch now
Sweden’s Prime Minister Ulf Kristersson told CNBC on Tuesday that he couldn’t “rule out any kind of problem. I think you can’t” although he added that “this is the time not to take chances. This is the time to get serious on defense.” “You can take for granted this unity. I say that there would be a value in itself with a very strong NATO unity on this, and this will absolutely be our, be our message on tomorrow’s [Wednesday’s] meeting,” he told CNBC on the sidelines of the summit.
watch now
Meanwhile, Hanno Pevkur, Estonia’s defense minister, said NATO’s 32 members will have to find a compromise.
watch now
The Netherlands ranks 7th on defence expenditure among NATO members
Netherlands ranks seventh among 32 NATO countries in terms of defence expenditure per capita. Dutch defence expenditure was estimated at 1.1 thousand euros per capita in 2024. At the top of the list is the United States (US) at 2.6 thousand euros. Norway, Denmark, Finland, Sweden and the United Kingdom rank between the US and the Netherlands. There are differences in purchasing power between countries. In Romania, less money is needed to pay wages of military personnel. In the Netherlands, the wages of personnel and wages to cover local expenses in the Netherlands are lower than in the US. The US remains in first place after adjusting for purchasing power differences. The Netherlands is currently the most expensive NATO country, with the US in second place, with Norway in third. The United States is the most costly NATO member state, followed by the Netherlands and then Norway, with Denmark and Finland in fourth and Sweden in fifth. The UK is the least expensive NATO member country, but the Netherlands is the second most expensive. The figures are based on estimates from NATO dating from June 2024.
Erratum: In a previous version of this article, it was not made clear that the NATO figures cited are estimates published in June 2024. The text has now been amended to reflect this.
Total defence spending by the Netherlands was 19.9 billion euros in 2024, according to the NATO estimate for that year. By comparison, total defence spending by NATO members was 1,362 billion euros, of which the US contributed around 894 billion. Average per capita spending for NATO was 1,394 euros, but excluding the US contribution it would have been 733 euros. Defence expenditure per capita in the Netherlands was somewhere in between these two levels, at 1,105 euros.
Download CSV Show datatable Defence expenditure per capita, 2024* Land 2024* (euros) US 2641 Norway 1765 Denmark 1540 NATO incl. US 1394 Finland 1205 Sweden 1176 UK 1111 Netherlands 1105 Germany 1081 Luxembourg 1079 Estonia 966 Poland 882 France 867 Lithuania 736 NATO excl. US 733 Latvia 702 Canada 691 Greece 683 Belgium 666 Czechia 579 Italy 540 Slovakia 484 Hungary 471 Romania 419 Slovenia 413 Spain 404 Portugal 402 Croatia 389 Bulgaria 333 Türkiye 246 Montenegro 240 North Macedonia 178 Albania 173 Source: CBS, NATO, OECD, Eurostat * provisional figures. NATO member Iceland is not included, because it has no army of its own. Defence expenditure per capita, 2024* Land 2024* (euros) US 2641 Norway 1765 Denmark 1540 NATO incl. US 1394 Finland 1205 Sweden 1176 UK 1111 Netherlands 1105 Germany 1081 Luxembourg 1079 Estonia 966 Poland 882 France 867 Lithuania 736 NATO excl. US 733 Latvia 702 Canada 691 Greece 683 Belgium 666 Czechia 579 Italy 540 Slovakia 484 Hungary 471 Romania 419 Slovenia 413 Spain 404 Portugal 402 Croatia 389 Bulgaria 333 Türkiye 246 Montenegro 240 North Macedonia 178 Albania 173 Source: CBS, NATO, OECD, Eurostat * provisional figures. NATO member Iceland is not included, because it has no army of its own.
Adjusted for purchasing power differences, Poland spends much more
Download CSV Show datatable Defence expenditure adjusted for purchasing power, 2024* Land 2024* (euros) US 2641 Norway 2083 Poland 1874 Denmark 1662 Estonia 1488 Finland 1416 Sweden 1389 Germany 1368 Lithuania 1329 Netherlands 1328 Latvia 1288 UK 1259 Greece 1186 Luxembourg 1147 France 1122 Czechia 1012 Romania 994 Hungary 908 Slovakia 850 Belgium 838 Canada 813 Türkiye 807 Italy 796 Croatia 769 Bulgaria 766 Portugal 687 Slovenia 667 Spain 635 North Macedonia** 533 Albania** 413 Montenegro*** 0 Source: CBS, NATO, OECD, Eurostat * provisional figures. NATO member Iceland is not included, because it has no army of its own. ¹⁾ purchasing power parity in 2023 ²⁾ purchasing power parity unknown Defence expenditure adjusted for purchasing power, 2024* Land 2024* (euros) US 2641 Norway 2083 Poland 1874 Denmark 1662 Estonia 1488 Finland 1416 Sweden 1389 Germany 1368 Lithuania 1329 Netherlands 1328 Latvia 1288 UK 1259 Greece 1186 Luxembourg 1147 France 1122 Czechia 1012 Romania 994 Hungary 908 Slovakia 850 Belgium 838 Canada 813 Türkiye 807 Italy 796 Croatia 769 Bulgaria 766 Portugal 687 Slovenia 667 Spain 635 North Macedonia** 533 Albania** 413 Montenegro*** 0 Source: CBS, NATO, OECD, Eurostat * provisional figures. NATO member Iceland is not included, because it has no army of its own. ¹⁾ purchasing power parity in 2023 ²⁾ purchasing power parity unknown
Netherlands above 2 percent of GDP in 2024, according to estimate
There are differences in purchasing power between countries. In Romania, for instance, less money is needed to pay the wages of military personnel and to cover local expenses than in the Netherlands. It is therefore useful to adjust for purchasing power differences when comparing between countries. When it comes to the ability to import weapons, however, the unadjusted figures provide a clearer picture.The US remains in first place after adjusting for differences in purchasing power, but the difference with Norway, in second place, is smaller. With the US currently as the most expensive NATO country, all member states move closer to the US position in this comparison. The Netherlands’ per capita expenditure in this calculation amounts to 1,328 euros (the US was used as a benchmark, resulting in a US per capita expenditure of 2,641 euros).The Netherlands drops from seventh place to tenth place in these calculations. Spending by countries such as Poland, Estonia and Latvia, in particular, is much higher after adjusting for purchasing power differences, and Poland rises to third place among all 32 NATO countries.
According to the NATO estimate, in 2024 the Netherlands met the traditional NATO standard again for the first time since the early 1990s: expenditure was just over 2 percent of the size of the economy, or gross domestic product (GDP). This puts the Netherlands in 20th place among NATO countries. Poland is at the top of the list with 4.1 percent of GDP. Estonia and the US share second place with 3.4 percent of GDP.
In response to Russia’s invasion of Ukraine in 2022, many countries have increased their spending on defence substantially over the last two years. In relative terms, US defence spending has remained at the same level. Greece’s defence spending has fallen significantly, although Greece remains well above the NATO standard.
Greece is one of NATO’s top defense spenders. Here’s why
Only four NATO allies spent a bigger slice of their GDP on security than Greece last year. Greece has consistently been a big defense spender, spending around 3.1% of its GDP on defense in 2024. At the core of Athens’ defense spending motivations is its tense and fractious relationship with fellow NATO ally Turkey. Instability in nearby countries and regions including the Middle East, and especially Turkey’s “muscular policy” across the Mediterranean, have made it is crucial for Greece to continue with its strong defense spending, experts say. The expenditures have already boosted Greece’s relationship with major powers like the U.S. and France, partly because these nations supply military equipment to Athens. The country still lacks a strong domestic defense industry and a key priority moving forward is to build an indigenous industrial base.
Sun-soaked Greece may not immediately come to mind as a top defense spender — but only four NATO allies spent a bigger slice of their GDP on security than the Mediterranean country last year. In addition to the U.S., NATO estimates show that tally includes Poland, Latvia and Estonia, which ramped up their defense expenditures in response to Russian aggression in recent years. Greece has meanwhile consistently been a big defense spender, spending around 3.1% of its GDP on defense in 2024. At the core of Athens’ defense spending motivations is its tense and fractious relationship with fellow NATO ally Turkey.
Tensions with Turkey
Greece and Turkey have “a lot of historical baggage,” Jacob Kirkegaard, a senior fellow at Bruegel, told CNBC. Tensions between the two nations date back several hundred years and include war, the displacement of over 1 million people, clashes over controlling Cyprus, and a strong geographical element due to Greece’s many islands, he said. “You have this very large number of Greek islands quite close to the Turkish coast that, in principle, the Turks could invade relatively easily,” Kirkegaard said. “Greece has traditionally maintained a … non-trivial military presence on virtually all these islands, and that is quite expensive because it means you have to have… a lot of garrisons.” Concerns about the “Turkish threat” are still relevant today, George Tzogopoulos, senior fellow at ELIAMEP, told CNBC. “Greece spends a lot on defence to protect its sovereignty and sovereign rights,” he said. Instability in nearby countries and regions including the Middle East, and especially Turkey’s “muscular policy” across the Mediterranean, have made it is crucial for Greece to continue with its strong defense spending, Tzogopoulos explained. “Greece has no alternative but be prepared for all scenarios,” he added.
A military superpower?
Greece’s military strength has cracks despite the country’s large defense budget, experts say. For example, Greece has increasingly been focusing on investing in sophisticated weapons systems, especially since the Russia-Ukraine war, Wolfango Piccoli, co-president of political risk advisory at Teneo, told CNBC. But, he noted, “much of that spending has been directed abroad.” “The country still lacks a strong domestic defense industry and a key priority moving forward is to build and sustain an indigenous industrial base that can reduce dependence on foreign arms suppliers,” Piccoli said. Greece’s military capabilities is also plagued by practical problems, Kirkegaard added. Many of the Greek army’s numerous tanks are relatively old, and personnel is not trained to use these vehicles in large formations. Equipment is also often very spread out across the country’s islands. “So it would be a mistake, therefore, in the case of Greece, to equate spending with sort of flat out military capabilities,” Kirkegaard said.
Greece in NATO
As NATO officials gather this week, Greece’s defense spending levels should also strengthen the country’s voice among the coalition’s 32 members. The expenditures have already boosted Greece’s relationship with major powers like the U.S. and France, Piccoli said, partly because these nations supply military equipment to Athens. “Defense spending in Greece also functions as a tool of geopolitical leverage, enhancing its standing and security guarantees in a complex regional environment,” Piccoli added.
Who is attending the NATO summit and what’s on the agenda?
Continued support for Ukraine amid Russian aggression as well as higher defence spending by allies are key topics. NATO Secretary General Mark Rutte, the former Dutch prime minister, will also chair the meeting for the first time. Among expected talking points are the war in Ukraine and the issue of how much member states are spending on their collective defence. Trump has long argued that the US shoulders too much of the financial burden and wants others to raise their defence spending. But the ongoing conflict between Israel and Iran, which the US joined last weekend, could shadow the summit. On June 23, Iran fired missiles at the US’s Al Udeid airbase in Qatar, a day after the US struck three Iranian nuclear facilities. On Friday, the three largest European nations by population, Germany, France and the UK, held talks with Iranian Foreign Minister Abbas Araghchi in Geneva, Switzerland, in an effort to avert a protracted war in the Middle East. The Russia-Ukraine war has dominated the summit since Russia invaded Ukraine in 2022 and remains the key topic on the agenda.
Leaders of the North Atlantic Treaty Organization (NATO), which includes several European countries, the United States, the United Kingdom and Canada, are gathering this week in The Hague, Netherlands, for a yearly summit amid Russia’s continued war on Ukraine and uncertainty about Washington’s future in the alliance.
The NATO summit, which starts on Tuesday and lasts for two days, is the first to be attended by US President Donald Trump since he took office in January for his second term. NATO Secretary General Mark Rutte, the former Dutch prime minister, will also chair the meeting for the first time.
Among expected talking points are the war in Ukraine and the issue of how much member states are spending on their collective defence, a contentious point in particular for the US. Trump has long argued that the US shoulders too much of the financial burden and wants others to raise their defence spending.
But the ongoing conflict between Israel and Iran, which the US joined last weekend, could shadow the summit. On June 23, Iran fired missiles at the US’s Al Udeid airbase in Qatar, a day after the US struck three Iranian nuclear facilities. Trump has since claimed that Israel and Iran had agreed to a ceasefire, but neither of the two nations has confirmed any deal.
Who is attending the NATO summit?
Amid several events planned for the two days of meetings, the main focus of NATO summits is the North Atlantic Council meeting on June 25, at which heads of state will discuss security spending, among other pressing topics.
Advertisement
All 32 NATO heads of state or government, top European Union members, and Ukraine’s representatives are expected at that meeting. Notably, they include:
UK Prime Minister Keir Starmer
Canadian Prime Minister Mark Carney
US President Donald Trump
French President Emmanuel Macron
German Chancellor Friedrich Merz
Italian Prime Minister Giorgia Meloni
Spanish Prime Minister Pedro Sanchez
Netherlands Prime Minister Dick Schoof
Turkish President Recep Tayyip Erdogan
Hungarian Prime Minister Viktor Orban
Ukrainian President Volodymyr Zelenskyy
European Commission President Ursula von der Leyen or European Council President Antonio Costa
Other NATO members whose heads of state or government are expected are:
Albania, Belgium, Bulgaria, Croatia, the Czech Republic, Denmark, Estonia, Finland, Greece, Iceland, Latvia, Lithuania, Luxembourg, Montenegro, North Macedonia, Norway, Poland, Portugal, Romania, Slovakia, Slovenia and Sweden.
Additionally, a group of Asian ally states is usually invited, including Japan, Australia, South Korea and New Zealand. Japan’s Prime Minister Shigeru Ishiba and New Zealand’s Christopher Luxon have confirmed attendance.
Will NATO leaders discuss the Israel-Iran conflict?
Yes, they are expected to address the ongoing conflict between Israel and Iran.
At a media briefing on Friday, a spokesperson for the German government said NATO members would discuss the conflict at the summit, but refused to comment on any military plans.
On Friday, the three largest European nations by population, Germany, France and the UK, held talks with Iranian Foreign Minister Abbas Araghchi in Geneva, Switzerland, in an effort to avert a protracted war in the Middle East.
What else is on the agenda?
Several topics are set to be discussed, including Russia’s war and NATO financing.
Support for Ukraine
The Russia-Ukraine war has dominated the summit since Russia invaded Ukraine in 2022 and remains the key topic on the agenda.
NATO members have long reiterated that their biggest threat is Russia and have been key in funding Ukraine’s resistance.
At the 2024 NATO summit in Washington, NATO allies declared that “Ukraine’s future is in NATO” and promised long-term security assistance with at least 50 billion euros in annual funding.
Rutte said on June 12 that long-term support to Ukraine was of paramount importance ahead of the critical gathering.
Advertisement
“We need to make sure that Ukraine is in the best possible position to one, [sustain] the ongoing conflict with Russia, [following] the unprovoked Russian aggression against Ukraine, but also to be in the best possible position when a long-term ceasefire (or) a peace deal arises, to make sure that Putin will never, ever try this again,” he said.
Although Ukraine is not a NATO member, it has long hoped to join, and the alliance agreed in 2008 that Kyiv would be admitted once it met a set of economic, defence, legal and political requirements. As a member, Kyiv would benefit from the Alliance’s Article 5 policy, which guarantees that anyone attacking a member state will be met with a collective defence response.
Ukraine’s potential membership of NATO is a key issue for Russia and one of the reasons it cited for starting the war. Russia views such an expansion of NATO towards its borders as a direct threat to its national security.
But splits in the NATO alliance have become visible since the Russian invasion: while members such as Estonia are keen for Ukraine to join and for more military support to be provided, some, like Hungary, are viewed as more friendly to Moscow. In Poland’s recent presidential election, the issue of Ukrainian refugees in the country, as well as ties with Europe, were key talking points.
Others are somewhere in the middle, fearful of overstepping and escalating the conflict into an all-member war, as Russia routinely threatens that arming Ukraine could drag NATO member nations directly into the conflict.
With Trump’s election to the White House in January, it has become increasingly unclear whether Ukraine will continue to enjoy much US support, as well.
Trump promised to swiftly end the war while on the campaign trail, but his attempts have not resulted in a ceasefire, and his attitude towards Ukraine’s President Volodymyr Zelenskyy has been less than friendly, evident in the manner in which the Ukrainian president was scolded during his White House visit in February.
Defence spending
Raising the amount each member spends on defence as a percentage of gross domestic product (GDP) is also a big topic.
In 2023, as Russia’s war on Ukraine entered its second year, NATO leaders agreed to raise spending on national defence budgets to at least 2 percent of GDP by 2024, up from the previous threshold of 1.5 percent. However, not all members have done so, with only 22 member countries meeting the target. Belgium, Canada, Croatia, Italy, Luxembourg, Montenegro, Portugal, Slovenia and Spain did not meet this target in 2024.
NATO allies have also come under fire from the Trump administration, which accuses the alliance of relying too heavily on US funding and has demanded that others step up spending to 5 percent of GDP.
The US presently contributes 15.8 percent to the NATO yearly $3.5bn spending. Trump has also cast doubts on whether the alliance should defend those countries not spending enough.
Advertisement
In May, the US envoy to NATO, Matthew Whitaker, told reporters that “5 percent is our number. We’re asking our allies to invest in their defence like they mean it.”
Due to that pressure, Secretary General Rutte is likely to ask member states to set a new target of 5 percent of GDP for their defence budgets by 2032, with about 1.5 percentage points of that set aside for “soft spending” on infrastructure and cybersecurity. However, some countries, such as Spain, have rejected the hike as unrealistic.
Meanwhile, Rutte has also urged member countries to boost their production of weapons and defence systems. “We have fantastic industrial companies in the US, all over Europe and Canada, but they are not producing at speed,” he said in a June 12 statement. “So we need more shifts, more production lines.”
Some members have already announced plans to boost defence spending.
Earlier this month, the UK announced plans to bring the country to “war readiness”. Its Strategic Defence Review (SDR) includes new investments in nuclear warheads, a fleet of new submarines and new munitions factories. But while the UK has so far pledged to increase spending on defence from 2.3 percent currently to 2.5 percent by 2027 – with “an ambition” to raise it to 3 percent in the next parliament (after 2029) – it is unclear if there are plans to increase this further.
EU leadership of NATO
European countries are increasingly looking to step up their leadership roles in case Trump unilaterally pulls out of NATO, the UK’s Financial Times newspaper reported in March.
The UK, France, Germany and the Nordic countries were among those engaged in informal but structured discussions on reorganising the bloc’s finances to reflect greater European spending, and hoped to present a plan to the US ahead of the summit, the paper reported.
Although Trump has not stated the US will leave NATO, Washington’s displeased posture has seen the EU bracing for a hard drawdown from the alliance. Talks could likely touch on a possible proposal from the EU.
Already, the US is estimated to have spent 3.19 percent of its GDP in 2024 on defence, down from 3.68 percent a decade ago, when all members initially promised to increase spending following Russia’s annexation of Ukraine’s Crimean peninsula.
It would take about five to 10 years of increased EU spending to replace current US capabilities, the FT reported.