NATO sets 2035 goal of raising defense spending to 5% of GDP

The 32 NATO member states, excluding Iceland which has no standing army, will allocate at least 2% of their Gross Domestic Product (GDP) to defense for the first time in 2025.

This data was published in NATO’s official report released on Monday.

The 2% goal was originally set in 2014, following Russia’s annexation of Crimea and the outbreak of war in Donbas. However, by 2024—while the war in Ukraine was ongoing—10 member states had still not met the commitment.

According to NATO’s latest assessment, all members have now reached the 2% benchmark this year, with seven countries holding steady at exactly 2.0%.

New target: 5%

The 2% threshold is now considered outdated. At the NATO summit held in The Hague on June 25, members agreed to raise defense spending to 5% of GDP by 2035.

Although the official communiqué did not explicitly mention the war in Ukraine, it stated that Russia poses a “long-term threat to Euro-Atlantic security.”

Under the new framework, at least 3.5% of spending will be dedicated to core defense needs, while 1.5% will go toward infrastructure protection and innovative projects.

Eastern Europe leads the way

Three NATO members on the eastern flank have already surpassed the 3.5% mark. Poland leads the alliance with 4.48% of GDP allocated to defense, followed by Lithuania at 4% and Latvia at 3.73%.

Before taking office in January, US President-elect Donald Trump urged NATO allies to increase military spending to 5%. He recalled pressuring European partners during his first presidency by saying, “I was the one who made them pay 2%.”