NATO Leaders Agree to Raise Defense Spending to 5% of GDP by 2035

A Significant Increase from the Current 2% Target Agreed in 2014

AP Yonhap News

The 32 member countries of the North Atlantic Treaty Organization (NATO) officially agreed on June 25 (local time) to increase their defense spending to up to 5% of their gross domestic product (GDP) by 2035. In a joint statement adopted in The Hague, Netherlands, NATO leaders committed to allocating at least 3.5% of their annual GDP to core defense needs in order to implement the alliance's military capability objectives. They also announced that they would submit annual plans to achieve this goal.

It was further agreed that up to 1.5% of GDP would be allocated to the protection of critical infrastructure, network defense, and strengthening the defense industrial base. By combining "direct military spending of 3.5%" with "indirect costs of 1.5%," NATO has met the "5%" target demanded by U.S. President Donald Trump. The current target, set in 2014, was 2%, so this represents a significant increase. The joint statement also notes that "the overall spending trajectory and balance according to the agreed plan will be reviewed in 2029 based on the strategic environment and revised military capability objectives."

This joint statement did not include any mention of Ukraine's accession to NATO. In contrast, the joint statement from last year's Washington summit during the Joe Biden administration explicitly stated, "We will continue to support Ukraine on its irreversible path toward full integration into the Euro-Atlantic community, including NATO membership." At that time, the statement also included a pledge to provide Ukraine with at least 40 billion euros (approximately 60 trillion won) in 2025.

This year’s joint statement instead reaffirmed "the unwavering sovereign commitments of the Allies to support Ukraine," adding, "Their contribution to Ukraine's security is, in turn, a contribution to our own security. In this regard, direct support for Ukraine and investments in the defense industry will be counted as part of the defense spending agreed upon today."