Five NATO Allies Set to Exceed 3.5% GDP Defense Spending in 2025
New alliance estimates show five NATO members on track to surpass 3.5% of GDP on core defense this year, well above the 2% target.
Five NATO member nations are projected to spend more than 3.5 percent of their gross domestic product on core defense in 2025, according to new alliance estimates, marking a significant surge in military investment across the bloc at a time of heightened geopolitical tension in Europe.
The figures represent more than triple the longstanding 2 percent GDP benchmark that NATO members agreed to meet — a threshold that itself has been a persistent source of friction, particularly as the United States has repeatedly pressured allies to contribute more to collective security. Reaching or exceeding 3.5 percent signals a meaningful shift in defense posture among at least a handful of member states.
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The development comes as the alliance faces continued pressure stemming from Russia's war in Ukraine, which has accelerated defense budget expansions across much of Europe. Countries closer to the eastern flank of NATO have historically led in defense expenditure as a share of GDP, and the new estimates suggest that trend is intensifying rather than plateauing.
Analysts note that sustaining spending above 3.5 percent of GDP over the long term presents real fiscal challenges, particularly for smaller economies, and that the current figures may reflect emergency supplemental appropriations rather than permanent structural budget changes. The gap between high spenders and those still struggling to reach the 2 percent floor remains a central tension within the alliance.
Continue reading at Reuters.
