The head of the NATO military alliance warned Monday that no country could have an opt-out from a massive new hike in defense spending, and that progress they make toward reaching the new target will be reviewed in four years.
At a summit in the Netherlands on Wednesday, NATO leaders are expected to endorse a goal of spending five per cent of their gross domestic product on their security, to be able to fulfil the alliance’s plans for defending against outside attack.
“NATO has no opt-out, and NATO does no side deals,” NATO Secretary-General Mark Rutte told reporters in The Hague. “It is critical that each ally carries their fair share of the burden.”
However, Spain said that it has reached a deal with NATO to be excluded from the five per cent target, while President Donald Trump said the figure shouldn’t apply to the United States, only its allies.
In announcing Spain’s decision Sunday, Prime Minister Pedro Sánchez said the spending pledge language in NATO’s final summit communique — a one-page text of perhaps half a dozen paragraphs — would no longer refer to “all allies.”
It raises questions about what demands could be insisted on from other members of the alliance like Belgium, Canada, France and Italy that also would struggle to hike security spending by billions of dollars. Rutte conceded that for some, reaching five per cent will “still be a long road ahead.”
On Friday, Trump insisted the U.S. has carried its allies for years and now they must step up. “I don’t think we should, but I think they should,” he said. “NATO is going to have to deal with Spain.”
Trump also branded Canada “a low payer.”
NATO’s new spending goals
The five per cent goal is made up of two parts. The allies would agree to hike pure defense spending to 3.5 per cent of GDP, up from the current target of at least two per cent, which 22 of the 32 countries have achieved. Money spent to arm Ukraine also would count.
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A further 1.5 per centwould include upgrading roads, bridges, ports and airfields so armies can better deploy, establishing measures to counter cyber and hybrid attacks and preparing societies for future conflict.
The second spending basket is easy for most nations, including Spain. Much can be included. But the 3.5 per cent on core spending is a massive challenge.
Last year, Spain spent 1.28 per cent of GDP on its military budget, according to NATO estimates, making it the alliance’s lowest spender. Sánchez said Spain would be able to respect its commitments to NATO by spending 2.1 per cent of GDP on defense needs.
Spain also is among Europe’s smallest suppliers of arms and ammunition to Ukraine, according to the Kiel Institute, which tracks such support. It’s estimated to have sent about 800,000 euros (US$920,000) worth of military aid since Russia invaded in 2022.
Beyond Spain’s economic challenges, Sánchez has other problems. He relies on small parties to govern and corruption scandals have ensnared his inner circle and family members. He is under growing pressure to call an early election.
Why the spending increase is needed
There are solid reasons for ramping up spending.
The Europeans believe Russia’s war on Ukraine poses an existential threat to them. Moscow has been blamed for a major rise in sabotage, cyberattacks and GPS jamming incidents. European leaders are girding their citizens for the possibility of more.
The alliance’s plans for defending Europe and North America against a Russian attack require investments of at least three per cent, NATO experts have said. All 32 allies have endorsed these. Each country has been assigned “capability targets” to play its part.
Spanish Foreign Minister José Albares said Monday that “the debate must be not a raw percentage but around capabilities.” He said Spain “can reach the capabilities that have been fixed by the organization with 2.1 per cent.”
Countries much closer to Russia, Belarus and Ukraine all have agreed to reach the target, as well as nearby Germany, Norway, Sweden and the Netherlands, which is hosting the two-day summit starting Tuesday.
The Netherlands estimates NATO’s defense plans would force it to dedicate at least 3.5 per cent to core defense spending. That means finding an additional 16 billion to 19 billion euros ($18 billion to $22 billion).
It’s not enough to agree to spend more money. Many allies haven’t yet hit an earlier two per cent target that they agreed in 2014 after Russia annexed Ukraine’s Crimean Peninsula. So the incentive of a deadline is required.
The U.S. insists it cannot be an open-ended pledge and a decade is too long. Still, Italy says it wants 10 years to hit the five per cent target.
The date of 2032 was initially floated, but 2035 appears to be the year that will be settled on. An official review of progress is likely to be conducted in early 2029, just after elections are scheduled to take place in the United States.
“NATO is absolutely convinced Spain will have to spend 3.5 per cent,” Rutte said. “Each country will now regularly report on what they are doing in terms of spending and reaching the targets. So we will see. And anyway, there will be a review in ’29.”
—Suman Naishadham in Madrid contributed to this report.
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