The alliance of 32 member countries devoted 2.77% of its GDP to defense in 2025. Only three European countries exceeded the 3.5% threshold: Poland, Lithuania, and Latvia. NATO observed a 20% increase in defense spending from European and Canadian allies in 2025, as stated in the annual report by organization Secretary-General Mark Rutte, urging members to maintain this momentum. Rutte expressed expectations for allies to demonstrate progress towards the 5% goal at the upcoming NATO summit in Ankara, highlighting the importance of a strong transatlantic relationship in times of global uncertainty. In the annual report, Rutte noted that all allies had met or exceeded the 2% defense spending target initially set in 2014, with many significantly increasing their expenditures.
Defense spending averaging 2.77% of GDP NATO leaders pledged at last year’s summit to allocate 5% of their GDP to defense and related investments by 2035. Countries committed to dedicating 3.5% of their GDP to basic defense, such as troops and weaponry, and 1.5% to broader defense-related measures like cybersecurity, pipeline protection, and enhancing military infrastructure for heavy vehicle passage. According to the report estimates, three NATO countries – Poland, Lithuania, and Latvia – surpassed the new 3.5% target last year, while Spain, Canada, and Belgium maintained a 2% rate. In total, the alliance of 32 member countries devoted 2.77% of its GDP to defense in 2025, with the United States accounting for approximately 60% of defense spending within the alliance. U.S. President Donald Trump has repeatedly called for NATO partners to significantly increase their defense spending, arguing that European allies should ultimately bear the majority of the continent’s conventional defense responsibility.
