Defense Budget Increased for 6 Consecutive Years, but Still Falls Short of Target
[Asia Economy Reporter Naju-seok] Among the 30 member countries of the North Atlantic Treaty Organization (NATO), 10 countries have met the defense spending target. The United Kingdom and France recorded defense expenditures exceeding 2% of their Gross Domestic Product (GDP), while Germany fell short of the target.
According to NATO on the 21st (local time), although the 30 countries increased their defense spending ratio relative to GDP compared to 2014, only one-third of the total member countries exceeded the defense spending target of more than 2% of GDP, which was set to be achieved by 2024.
Foreign media reported that European countries increased their defense budgets despite the COVID-19 crisis, but significant gaps still remain among member countries. Former U.S. President Donald Trump criticized Europe for shifting their defense responsibilities onto the United States. In fact, the U.S. defense spending is 3.87% of GDP, whereas Germany, the largest European economy, allocated 1.57% of its GDP to defense. Moreover, Luxembourg’s defense spending ratio was 0.57% of GDP, and Belgium’s was 1.1%, respectively.
Jens Stoltenberg, NATO Secretary General, said on the day, "This year will be the sixth consecutive year of increased defense spending by European allies and Canada," adding, "This time, it is effectively a 4.3% increase." He continued, "We expect this trend to continue."
Although defense spending continues to rise, concerns were raised that NATO’s naval and response forces still show a gap compared to Russia. Secretary General Stoltenberg predicted that if the planned defense spending increases over the next four years are implemented, defense budgets will increase by about 40%. The increased defense budget is expected to contribute to new submarines and improvements in aerial weapons systems.
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