Defence Budgets Surge: NATO Members Boost Spending in 2025

NATO’s members, including Canada, lifted their defence budgets by about 20% in real terms for the year 2025, a figure highlighted in the alliance’s annual review. The report, released on March 26, urges all participants to maintain this upward trend and aims for a collective target of 5% of GDP by the year 2035. The chief of NATO’s European group, Mark Rutte, emphasized that a solid transatlantic partnership is vital amid global uncertainties. He also called on countries to demonstrate clear progress toward the 5% goal during the upcoming summit in Ankara. Earlier this year, U. S. President Donald Trump publicly urged European allies to increase their defence spending, arguing that the continent should shoulder more responsibility for its own security. Trump’s comments on social media suggested a lack of cooperation from NATO members in addressing threats such as Iran, though his statements were criticized for lacking nuance.

The annual report notes that every member nation reported defence expenditures meeting or exceeding the 2% benchmark set in 2014. Many countries also made significant jumps beyond that baseline. During last year’s NATO summit, leaders committed to allocating 5% of GDP to defence by 2035. This figure is split into two parts: 3. 5% for core defence—covering troops, equipment, and related costs—and an additional 1. 5% for broader security needs such as cyber protection, infrastructure resilience, and logistical support. Poland, Lithuania, and Latvia already surpassed the 3. 5% core target in 2025, while Spain, Canada, and Belgium reached the 2% mark. Across all 32 members, the alliance’s total defence spending amounted to 2. 77% of GDP in 2025, with the United States contributing roughly 60% of that total.

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