Diplomacy

NATO members hit record $1.3 trillion defense spending

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NATO’s 32 members allocated a total of $1.303 trillion to defense spending last year, exceeding estimates, and 22 members met the 2% GDP target.

According to figures published by the military alliance on Thursday, member countries’ defense spending reached a record level. A total of $468 billion (412 billion euros) was spent in Europe and Canada, with 38% of this allocated to major equipment purchases. Meanwhile, the US share was $818 billion (720 billion euros).

According to the document, NATO members spent $200 billion (176 billion euros) less on defense in the previous year, 2023, indicating a 19% increase in spending in the reported year. The figures are based on 2021 prices.

A total of 22 countries also achieved the target of spending 2% of their GDP on defense. In the initial estimates published at the beginning of the year, 23 countries were expected to meet the target, but Montenegro did not achieve this target.

Belgium (1.29%), Italy (1.5%), and Spain (1.24%), traditionally at the bottom of the class, remained below the 2% target. Canada also failed to meet the target (1.45%).

Some key security actors like the United Kingdom (2.33%), Germany (2.1%), and France (2.03%) met or exceeded the target.

According to the data, most of the cash resources are directed to the eastern flank, i.e., border regions with Russia, the Baltic countries, and Poland. Greece is also among the countries that traditionally spend heavily.

This situation creates a challenging backdrop for discussions with Washington.

Washington is pushing to increase the defense spending target from 2% of GDP to 5%. As discussions continue, NATO diplomats suggest that a compromise around 3% or 3.5% could be reached. The final decision will be made at the leaders’ summit in The Hague at the end of June.

Swedish Prime Minister Ulf Kristersson said last week that the regular defense spending target could be “set at 3.5%, with an additional 1.5% for non-military areas”.

The Swedish leader added a new dimension to the discussions ahead of the summit by stating that “discussions are ongoing” regarding setting a target in NATO for “civil defense, readiness, and support for Ukraine”.

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