Daily Reports
NATO Secretary General Jens Stoltenberg announced on Monday that NATO members will significantly increase their defense spending by 18% this year, marking the largest increase in recent history. Stoltenberg emphasized that 23 out of the 32 NATO member countries are expected to meet the alliance’s target of allocating at least 2% of their gross domestic product (GDP) to defense expenditure in 2024.
Since NATO’s 2014 summit, where the 2% GDP defense spending goal was established, only three nations— the United States, Greece, and Britain—initially met the criteria. However, substantial increases in defense budgets have been observed, particularly following Russia's annexation of the Crimean Peninsula from Ukraine in 2014. The United States continues to lead global defense spending, projecting a budget of $968 billion for this year, which is more than double the combined spending of all other NATO members.
Stoltenberg highlighted that an overwhelming portion of this increased defense spending by European nations flows into the United States, with more than two-thirds of European defense procurements ($140 billion in the past two years) being sourced from American companies. This surge in expenditures aligns with NATO’s strategic interest in bolstering transatlantic security.
Further emphasizing NATO’s commitment, Stoltenberg noted that the alliance is set to play a crucial role in supporting Ukraine. He stated, 'The stronger our support for Ukraine is, the faster this war will end.' This comes ahead of the NATO summit scheduled next month in Washington, aimed at consolidating efforts and resources to assist Ukraine amidst ongoing conflict.
- NATO’s document indicates that despite the overall increase, eight countries remain below the 2% GDP defense spending threshold, including Croatia (1.81%), Portugal (1.55%), Italy (1.49%), Canada (1.37%), Belgium (1.30%), Luxembourg (1.29%), Slovenia (1.29%), and Spain (1.28%).
- Defense spending by European allies and Canada has seen a dramatic boost, with an 18% increase this year alone—the most substantial rise in decades. Over the past four years, the number of NATO allies meeting the 2% target has more than doubled, showcasing a significant escalation in military budgets among European members.
