NATO leaders meeting in The Hague on Wednesday have agreed on a new defence spending pledge designed to appease U.S. President Donald Trump’s call for greater military commitments, while still offering flexibility to budget-conscious member states.
Although Trump has demanded that all 32 NATO members commit 5% of their GDP to defence, the alliance settled on a compromise: 3.5% will be allocated directly to core military spending by 2035, and an additional 1.5% to broader defence-related areas, including cybersecurity and critical infrastructure.
This compromise gives Trump a symbolic win ahead of next year’s U.S. elections, while allowing European governments room to maneuver financially.
Currently, only a few countries — including Poland and the Baltic states — are nearing the 5% mark. The U.S. itself spent just under 3.4% of GDP on defence in 2024.
The majority of the 3.5% will go towards enhancing NATO’s military capabilities. Though specific details remain classified, NATO Secretary-General Mark Rutte revealed that the alliance is preparing for its most significant force build-up since the Cold War.
Plans include a fivefold increase in air defences and a major expansion of armored vehicle and tank fleets.
Military assistance to Ukraine is also expected to count towards this target.
The remaining 1.5% will cover crucial infrastructure and digital security.
These include transport routes capable of moving heavy military equipment and resilient cyber networks.
“Bridges, rail lines, and secure digital systems are as vital to our defence as tanks and missiles,” said U.S. NATO Ambassador Matthew Whitaker.
NATO admits that many of these projects are already part of national budgets but will now be categorized under defence.
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Italy, for example, has argued that its long-discussed bridge connecting Sicily to mainland Italy should count toward the broader defence spending goal.
To ensure countries stick to the plan, NATO members will now be required to submit annual reports detailing their defence investments and progress.
An overall review is scheduled for 2029, at which point the alliance may revise its targets based on emerging threats.
Earlier proposals for automatic annual spending increases of 0.2 percentage points were scrapped due to member resistance.
Still, leaders are aware of the political pressure to meet these goals — particularly if Trump returns to the White House and resumes criticism of NATO’s spending gaps.
Despite Spain’s claim of a side agreement exempting it from the full pledge, Secretary-General Rutte has made clear that all members are expected to meet the new commitments.
“There are no opt-outs. Every country must do its part,” he stated.
As NATO faces growing challenges from Russia and other global threats, the new deal marks a significant shift in the alliance’s posture — one that blends military ambition with political realism.