Wednesday, October 1, 2025

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NATO Defense Ministers Meet to Finalize Defense Spending Targets Before June Summit

NATO defense ministers gathered Thursday to approve ambitious new military capability targets and finalize defense spending commitments ahead of a crucial alliance summit later this month, with officials signaling major increases are imminent.

NATO Secretary-General Mark Rutte told reporters Wednesday that ministers would take “a huge leap forward” at the Brussels meeting, agreeing to new capability targets that will require “significantly higher defence spending.”

“We will strengthen our deterrence and defence by agreeing ambitious new capability targets,” Rutte said. “We need more resources, forces and capabilities so that we are prepared to face any threat, and to implement our collective defence plans in full.”

The meeting comes 19 days before the NATO summit in The Hague on June 24-25, where allies are expected to formally adopt new spending targets that could more than double the current 2% GDP requirement.

Secretary of State Marco Rubio predicted in May that all NATO nations would agree to reach 5% defense spending “over the next decade” by the summit’s conclusion.

Rutte has proposed a split approach to reach that target: 3.5% for core military spending and 1.5% for broader security investments including cybersecurity and infrastructure.

The NATO chief identified air and missile defense, long-range weapons, logistics and large land maneuver formations as the alliance’s top capability priorities requiring immediate investment. Rutte emphasized that achieving these new targets will require “significantly higher defence spending. That underpins everything.”

Currently, only 22 of NATO’s 32 members meet the existing 2% GDP target established in 2014. The US contributes nearly 69% of the alliance’s total $1.28 trillion in defense spending. Estonia and Lithuania have already committed to meeting the 5% target, citing threats from neighboring Russia. Germany has signaled support for the proposal.

The meeting follows months of pressure from President Donald Trump, who has demanded allies shoulder more of the defense burden as the U.S. shifts strategic focus toward China.

European allies and Canada invested $485 billion on defense in 2024, marking a 20% increase from the previous year, according to NATO figures.

Related: Britain Unveils Major Defense Overhaul Amid Russian Threats

Very few countries worldwide currently spend 5% or more of GDP on defense, including Israel, Ukraine, Russia, Algeria, Armenia, Lebanon, Oman, Saudi Arabia and South Sudan — most engaged in active conflicts.

The Thursday meeting precedes a Ukraine Defense Contact Group session, where allies will discuss continued military aid to Kyiv as the war with Russia continues. NATO leaders will finalize the new spending commitments at The Hague summit, which could represent the most significant change to alliance burden-sharing since NATO’s founding in 1949.



Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

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