NATO member states concluded a landmark summit in The Hague this week by agreeing to raise defense and security-related spending to 5% of GDP by 2035, a move seen as both a response to growing global threats and the result of intense pressure from the U.S. President Donald Trump.
The agreement, which divides the 5% target into 3.5% for core defense activities and 1.5% for infrastructure, cyber and resilience efforts, reflects a significant escalation in alliance commitments amid Russia’s war in Ukraine and mounting instability in the Middle East. Progress will be reviewed in 2029, as reported by Reuters.
Trump’s Shadow Looms Over The Hague
Much of the summit’s tone was shaped by Trump’s assertive diplomacy. NATO Secretary-General Mark Rutte, in a move that sparked widespread criticism, referred to Trump as “daddy” during a joint press conference and credited him for pushing through the spending increase.
While Rutte defended his comments as “lighthearted,” European leaders have been accused of “orchestrated groveling” to appease Trump, with critics warning that such displays risk undermining the alliance’s image of equality and shared values. The Guardian described the summit as a carefully stage-managed effort to keep Trump engaged with NATO.
European Defense Budgets Surge
The new spending deal has already prompted significant changes across Europe. Germany, for instance, announced it will boost its defense budget from €95 billion to €162 billion by 2029, reaching approximately 3.5% of GDP. The German government also plans to simplify procurement rules to accelerate defense readiness.
Other NATO members, including Poland and the Netherlands, are preparing similar increases. Importantly, spending on Ukraine-related military aid will count toward the new target, providing flexibility for governments to meet the ambitious goals. These terms were formalized in the official agreement.
Article 5 Reaffirmed Amid Security Concerns
A central message of the summit was NATO’s “ironclad commitment” to Article 5, the principle that an attack on one member is considered an attack on all. Though Trump initially expressed ambiguity about the provision’s scope, he ultimately joined other leaders in publicly reaffirming the alliance’s defense guarantees.
Secretary-General Rutte emphasized that both the U.S. and Europe remain “totally committed” to supporting Ukraine, even as some observers noted that Ukraine’s presence at the summit was more muted than in previous years. Military assistance to Kyiv will continue, with Europe assuming more responsibility for logistics and supplies while the U.S. focuses on intelligence and air defense.
Spain Resists Spending Hike
Despite widespread support for the deal, Spain has opted out of the 5% target, citing domestic priorities. Spanish Prime Minister Pedro Sánchez confirmed that his government will cap defense spending at roughly 2.1% of GDP. In response, Trump has hinted at possible trade consequences.
Analysts have expressed concern that the spending increase may strain national budgets, especially for European countries facing stagnant growth. European officials privately admit that the new targets will be difficult to meet without higher debt levels or cuts to social programs.
Criticism Over Summit Substance
Beyond the headlines, experts say the summit avoided difficult questions about NATO’s long-term strategy. According to Reuters, key issues such as how to achieve defense integration, secure greater European autonomy, and clarify NATO’s role beyond Europe were left unresolved.
Critics argue that, without structural reforms, the increased spending may entrench inefficiencies and fragmentation in Europe’s defense industries.
Looking Ahead
The summit concluded with promises to remove defense trade barriers, increase cooperation with industry and academia, and host the next NATO gathering in Turkey. The formal review of defense spending progress is scheduled for 2029, as documented in the official agreement.
Written by Vandan Parakh
