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Editor's note: This story was updated with comments made by NATO Secretary General Mark Rutte.
NATO member states have agreed to a new defense spending benchmark, committing to allocate 5% of their gross domestic product annually to defense and security-related expenditures by 2035, according to a joint statement released on June 25 by alliance leaders meeting in the Netherlands.
The decision marks a significant increase from the current 2% guideline and reflects the alliance's response to the push from the U.S. and growing security threats, particularly the long-term challenge posed by Russia.
"We remain united and steadfast in our resolve to protect our one billion citizens," the statement reads. "Allies commit to invest 5% of GDP annually on core defense requirements as well as defense and security related spending."
"The decision we make today makes NATO much stronger. It also makes NATO a much fairer alliance, with Europe and Canada stepping up," NATO Secretary General Mark Rutte said during a briefing on June 25.
Unlike in previous years, this year's NATO statement does not include a direct condemnation of Russia's actions, unlike the communique issued during the 2024 NATO summit in Washington, which explicitly condemned Russia's full-scale invasion of Ukraine.
But the leaders reaffirmed support for Ukraine, stating that direct contributions to Ukraine's defense and industrial capacity will be counted toward the 5% total.
When asked by a journalist whether the current trajectory of military aid from allies could help Ukraine "not only survive but win the war," Rutte said he is "optimistic."
"You can safely assume that the trajectory in the first almost six months now is really north of last year's," he said. "By the end of the year, it will end up north over $50 billion, which was pledged in 2024. I'm optimistic about that, but I won't make a concrete prediction."
He emphasized the importance of sustained and long-term support.
"We have to make sure Ukraine can stay in the fight, that it has what it needs... But we're also working to secure peace deal or a long-term ceasefire. And then we have to make sure that Ukraine has what it needs to prevent (Russian President) Vladimir Putin from effort ever trying this again in the future,” Rutte said.
Anna Fratsyvir
Rutte added that part of the strategy includes supporting Ukraine's defense industrial base, which has an estimated $35 billion in spare capacity.
Rutte emphasized that NATO's immediate priority is to "keep (Ukraine) in the fight," noting that support includes "training, delivering military equipment, but also various streams of money going into Ukraine" to help it defend itself and lay the groundwork for a future peace deal or long-term ceasefire.
Politico earlier reported that the narrowed focus of the NATO summit in The Hague was designed to appease U.S. President Donald Trump.
"(Trump) has to get credit for the 5% — that's why we're having the summit," one unnamed European defense official told Politico.
Under the new framework, at least 3.5% of GDP will be directed toward core defense needs, including NATO capability targets, with the remaining 1.5% covering civil preparedness, infrastructure protection, innovation, and the defense industrial base.
Allies will submit annual plans outlining a credible path to reach the targets, with a mid-term review scheduled for 2029.
Trump has consistently accused NATO members of underfunding their militaries, pushing for raising defense spending target to 5% of GDP.
In 2024, only 23 alliance members met the 2% target, according to NATO estimates. Poland was ahead of all members with 4.12% of GDP allocated to defense, followed by Estonia (3.43%) and the U.S. (3.38%).
Rutte previously said on June 17 that all NATO countries are on track to meet the 2% threshold in 2025.
Oleg Sukhov
