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NATO Allies Strive to Boost Defense Spending Amid Security Concerns
27 Aug
Summary
- All NATO members to reach 2% GDP defense spending target in 2025
- Only 3 allies currently exceed new 3.5% GDP defense spending goal
- Poland, Lithuania, and Latvia lead NATO in defense spending as share of GDP
As of August 27, 2025, NATO data shows that all member states are set to meet the alliance's longstanding defense spending target of 2% of GDP this year. This marks a significant increase in military investments across the alliance, driven in part by Russia's 2022 invasion of Ukraine and pressure from former U.S. President Donald Trump for European allies to contribute more to their own defense.
However, the NATO leaders have now set a new, higher goal of 3.5% of GDP for defense spending, to be achieved by 2035. Currently, only three NATO members exceed this target: Poland at 4.48%, Lithuania at 4%, and Latvia at 3.73%. The majority of allies are still working to reach the minimum 2% threshold, with several only marginally above it.
NATO Secretary General Mark Rutte has emphasized that simply increasing defense budgets is not enough, stressing the importance of translating the extra funding into real military capabilities. "Cash alone doesn't provide security," he said, adding that "Deterrence doesn't come from 5%. Deterrence comes from the capability to ... fight potential enemies."
As NATO continues to adapt to evolving global security challenges, the alliance's members are under pressure to significantly boost their defense investments and ensure their forces are equipped and ready to respond to potential threats.
