Military

Historic NATO Agreement: 5 percent Defense Budgets Target Security Against Russia and China

NATO is strengthening its defenses.

Mikkel Preisler
By Mikkel Preisler 23. June 2025

The NATO alliance has just adopted a historic and ambitious plan to increase defense spending to 5% of GDP by 2035.

The decision, recently approved by all 32 NATO ambassadors, marks a significant shift in security policy and sends a strong signal to the world—especially to Russia and China.

From 2 to 5 percent – a Necessary Leap?

The new goal involves a substantial increase from the current target of 2% of GDP. NATO specifically intends to allocate 3.5% to direct military expenses, while 1.5% will be used for related areas such as cyber defense and infrastructure.

According to diplomatic sources, this escalation is a clear response to growing threats from both Vladimir Putin’s Russia and China’s increasing global influence.

The American President Donald Trump has also played a significant role in the decision.

Trump has repeatedly expressed dissatisfaction with alliance members who do not contribute their share, and the decision is also seen as an effort to keep the USA engaged in NATO cooperation.

Division Beneath the Surface

While the agreement is now formally in place, not all countries have been equally enthusiastic about the decision.

Spain stands out with a critical voice. Prime Minister Pedro Sanchez has already announced that Spain does not feel obligated to reach the 5% target and instead continues to aim for a more moderate goal of around 2.1%.

Spain currently spends only about 1.24% of its GDP on defense, which already places the country among the lowest contributors in NATO.

This resistance could potentially create internal tensions, especially with the USA, where Trump has clearly stated that countries not contributing sufficiently financially may not necessarily count on American support.

The UK on the Upswing

The UK has long been trying to balance between NATO obligations and national budget considerations.

The British government supports the decision for increased spending but ensures that it is not realized until after the next parliamentary term.

The Prime Minister has an ambition to raise the defense budget from 2.3% to 3% by 2034, now laying the groundwork for further commitments towards NATO’s new goal.

Thus, the alliance sends a strong and unified signal to Russia and China that NATO countries remain steadfast and willing to invest unprecedentedly in their collective security.

Our team may have used AI to assist in the creation of this content, which has been reviewed by our editors.