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US Secretary of Defense Pete Hegset holds a bilateral meeting with NATO Secretary General Mark Rute (2 -l) in the Pentagon in Washington, April 24, 2025.
Brandan Smilevsky | AFP | Gets the image
This week, fireworks can begin during the NATO annual summit when the US is pushing its allies to increase the cost of defending up to 5% of its gross domestic product (GDP) dramatically.
The 5% figure consists of 3.5% of GDP, which should be spent on “clean” protection, with EXTRA1.5% of GDP goes to the safety infrastructure, such as cyber-war and intelligence.
While some state -member talk They are glad to hit this milestone, and some countries are not too far from this mark, others do not even match the 2%threshold, which was agreed over a decade ago. Although they can promise to increase defense costs, whether these promises will materialize the key issue.
The talks are cheap and the terms can be vague – but agreed actions are that the US and President Donald Trump, which has been present at the NATO summit for the first time since 2019.
US President Donald Trump arrives at NATO summit at Grove Watford, northeast London on December 4, 2019.
Christian Hartman | AFP | Gets the image
“The US is looking for everyone to say, ‘Yes, we mean it. We have a plan. 5% real. We are going to get there, ”Kurt Volker, a former US ambassador to NATO and an outstanding European Analysis Center (CEPA), said on Wednesday.
“But one thing to watch when the messages actually are in mind. Some messages from some of our European allies, at least when they are short of their own media and their own parliaments:” Yes, 5%, but it is indeed 3.5%and 1.5%, and it can be almost everything “… so it will knock out (from the defense).
“And when it is over, you are going to face the US,” Volker added.
High rates, low expectations
On June 24-25, the allies are high because the Allies meet in the Hague in the Netherlands, giving a constant conflict in Ukraine and the war in the Middle East, threatening to destabilize the world economy.
Defense analysts say the meeting could be the most result in the 77-year-old alliance this year if the US was pulled out before the summit.
US Secretary of Defense Pete Hegset was persistent because he said that 5% will “happen” At a separate NATO collection, NATO Secretary General Mark Rute is also widely connected to this message earlier this month.
German Air Force helicopters at Pajuostis airfield in Panevez, Lithuania, May 6, 2025, during the military exercises of Griffin Lightning 2025.
Petras Balas | AFP | Gets the image
Then, perhaps, in the midst of the annoyance of the leader of the White House with the block, only six member states reached 2% of the goal, including in the US, however; By 2024 23 members reached the threshold 2%, According to NATO.
While some have significantly exceeded this goal – such as Poland, Estonia, USA, Latvia and Greece – large economies, including Canada, Spain and Italy, lagged below the deposit threshold. No NATO member has yet reached a 5% expense goal, and some are likely to drag your legs when it comes to this milestone.
A picture taken during the visit of NATO Military exercises “Dakska Spring” in Romania on Monday May 12, 2025.
Dirk waem | AFP | Gets the image
The UK, Poland and Germany have already stated that they intend to increase the cost of defense to the necessary goal, but their terms are unclear. The UK is reportedly trying to delay the cost of three years, According to the I newspaper. CNBC turned to Downing Rate for Comments.
Spain and Italy are regarded as the main content against the 5% target Only after in 2025 did he have committed to reaching a 2%threshold. Canada, meanwhile, spent 1.3% of GDP defense in 2024, NATO’s estimates are assumedEven less than Italy, Portugal or Montenegro.
The 5% expense for defense is the goal, but not given, said a senior employee of the CEPA protection technology initiative on Wednesday.
“Every country … tries to find out how they are going to transfer, what needles can take on the obligations, but also forcing accounting work when each nation has to make shopping funds against what usually unpopular, massive increase in defense costs,” he said, emphasizing that it is “a long way from the obligations …”
Europe must commit
European aerospace and defense companies carefully fulfill the comments and obligations on NATO’s expenses, but they say they are stuck in suspension between promises and actions by specific public procurement.
Last week, Leonardo, Amber and Saaba said CNBC that the continent must act decisively and collectively to make long -term obligations to protect costs and investment contracts to allow companies to scale their production facilities and production capabilities.
“If we go 3.5% (net defense costs) throughout the European NATO, it will be a lot, and more will be needed in the potential.
“We can do more, and I think we need to gather in Europe to create more scale, also what we do to agree on demand, approval of requirements, so we can be competitive at the international level. Therefore, there is much to do,” he said.
Roberto Singalani, CEO of Italian Defense Leonardo, agreed that “a lot of work should be done”.
“Currently, Leonardo has a power increase program because we fully know that we need to increase the production of specific platforms, defense systems, electronics and technological solutions. This is not only a matter of money, it is a priority. This is a matter of reducing fragments among Europe,” he said CNBC Charlotte Reed.
Defense companies had to know what was expected ahead of time, Cingolani said, given the complex nature of global supply networks underlying the defense industry.
“We have about 5,000 companies in the supply chain, and we are in 160 countries. So it’s very difficult,” he said. “You have to invest in the supply chain. You have to make an investment. You must protect the supply chain. But of course, we also have to face the lack of raw materials … No simple solution. If there was a solution, we would do it,” he said.
