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NATO allies increased defense spending

NATO allies increased defense spending

European NATO allies and Canada increased their defense spending by 19.6% in 2025 compared with 2024, according to the alliance’s annual report published on March 26 by Secretary General Mark Rutte. Despite the sharp rise, their combined military spending still remained below that of the United States. Reports Dw.com.

The report said all 32 NATO members spent at least 2% of GDP on defense in 2025, reaching a key alliance benchmark. Seven countries — Poland, Lithuania, Latvia, Estonia, Denmark, Norway and the United States — went beyond 3% of GDP. Poland, Lithuania and Latvia each spent more than 3.5%, a level NATO members are expected to reach collectively by 2035.

Germany spent 2.39% of its GDP on defense in 2025. In absolute terms, Berlin was second only to Washington. Of the $1.63 trillion spent by NATO last year, the United States accounted for $980 billion, while Germany contributed more than $120 billion. The combined spending of all other allies reached a record $574 billion.

In June 2025, NATO members agreed to raise overall security-related spending to 5% of GDP by 2035. Under that plan, 3.5% would go to core defense needs, while another 1.5% would fund counterterrorism efforts and infrastructure that could support military operations. Analysts say European NATO countries may need to raise direct defense investment to nearly 2.2 trillion euros by 2035 to meet rearmament goals and offset any reduction in US military supplies.

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