Business & Economy 0

23.06.2025.

14:21

NATO Finally Gives the Green Light - Trump Awaits Summit Approval

NATO member states have reached a consensus on a joint statement ahead of the upcoming summit, setting a new target of five percent of GDP for annual defense and security spending by 2035, diplomats have confirmed.

Izvor: Index.hr

NATO Finally Gives the Green Light - Trump Awaits Summit Approval
EPA-EFE/TOMS KALNINS

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The agreement comes after overcoming objections from Spain.

While the statement has received informal approval from all 32 NATO members, it will only become official once it is endorsed by alliance leaders, including U.S. President Donald Trump, at the summit in The Hague on Wednesday.

Spain Initially Blocked the Proposal: “Unreasonable and Counterproductive”

Spanish Prime Minister Pedro Sánchez had initially blocked an earlier draft of the statement, arguing that committing to a five percent spending target would be “unreasonable and counterproductive,” according to Index.

Spain, which spent only 1.24 percent of its GDP on defense last year, the lowest in the alliance, based on NATO estimates, had already agreed in April to accelerate its efforts to meet NATO’s existing two percent goal.

Diplomatic sources revealed that a subtle change in the phrasing of the spending pledge eventually overcame Sánchez’s objections. The wording was adjusted from “we commit” to “allies commit,” allowing Sánchez to argue that Spain would not be bound by the obligation.

Sánchez: “Five Percent Would Be Disproportionate and Unnecessary”

“A five percent allocation would be disproportionate and unnecessary,” Sánchez stated in a national television address. “We fully respect the legitimate desire of other countries to boost their defense budgets, but we will not follow that path.”

He emphasized that Spain would fulfill all its other NATO obligations, including those related to personnel and equipment, while aiming to limit defense spending to 2.1 percent of GDP.

In a letter sent Thursday to NATO Secretary-General Mark Rutte, Sánchez formally requested that Spain be exempt from the new five percent target, a move that raised concerns about whether the entire summit might be derailed.

Consensus Still Required as NATO Shifts Focus

Since NATO operates on the principle of consensus, all 32 member states must approve any official statement. Alliance officials argue that a significant increase in defense spending is essential to counter the growing threat from Russia and to enable Europe to take greater responsibility for its security, particularly as the U.S. continues to shift its strategic focus toward China.

Trump: Target Should Not Apply to U.S.

NATO's current defense spending guideline stands at two percent of GDP. However, President Trump has pushed for a new target of five percent, though he has recently suggested that this figure should not apply to the United States.

Under Rutte’s plan, the five percent target would consist of raising core defense spending from two to 3.5 percent of GDP, plus an additional 1.5 percent for related areas such as cybersecurity and military infrastructure (e.g., roads and bridges adapted for military use).

Although Rutte initially proposed meeting the target by 2032, the final draft of the agreement pushes the deadline to 2035, with a review planned for 2029, according to diplomatic sources.

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