Subscribe here: [ Ссылка ] In 2014, NATO Heads of State and Government agreed to commit 2% of their national Gross Domestic Product (GDP) to defence spending, to help ensure the Alliance's continued military readiness. This decision was taken in response to Russia’s illegal annexation of Crimea, and amid broader instability in the Middle East. The 2014 Defence Investment Pledge built on an earlier commitment to meeting this 2% of GDP guideline, agreed in 2006 by NATO Defence Ministers. The 2% of GDP guideline is an important indicator of the political resolve of individual Allies to contribute to NATO’s common defence efforts.

In 2024, 23 Allies are expected to meet or exceed the target of investing at least 2% of GDP in defence, compared to only three Allies in 2014. Over the past decade, European Allies and Canada have steadily increased their collective investment in defence – from 1.43% of their combined GDP in 2014, to 2.02% in 2024, when they are investing a combined total of more than USD 430 billion in defence.

In order to ensure that these funds are spent in the most effective and efficient way to acquire and deploy modern capabilities, NATO Allies have also agreed that at least 20% of defence expenditure should be devoted to major new equipment. This includes associated research and development, perceived as a crucial indicator for the scale and pace of modernisation.

NATO Secretary-General Mark Rutte called on European allies on Wednesday to intensify defense spending, citing the need to meet growing security challenges as President-elect Donald Trump prepares to return to the White House.

A decade ago, NATO leaders agreed to halt post-Cold War defense cuts and commit two percent of GDP to military budgets following Russia's annexation of Crimea.

However, after Russia launched a full-scale invasion of Ukraine nearly three years ago, leaders emphasized that the two percent target should now be a minimum benchmark. Despite collective progress, about a third of NATO members still fall short.

"If you want to keep the deterrence at the present level, two percent is not enough," Rutte said after a meeting of NATO foreign ministers in Brussels. "We can now defend ourselves, and nobody should try to attack us. But I want that to stay the same in four or five years."

How Would Increased Spending Bolster NATO's Strategy?
During Trump's first term, he criticized U.S. allies for failing to meet NATO's defense budget targets, and has since threatened not to defend "delinquent" countries who in his view do not pay enough toward the alliance, leaving the U.S. to makeup the shortfall. NATO is founded on the principle that an attack on any member must be considered an attack on them all, with Trump's remarks undermined confidence that the U.S. could be counted on in a crisis.

However, NATO has initiated the most significant overhaul of its defense strategy since the Cold War. Under new, classified plans, the alliance intends to deploy up to 300,000 troops to its eastern flank within 30 days if needed. This rapid-response strategy aims to deter Russian aggression across regions spanning the Arctic to the Black Sea.

NATO officials have warned that executing this security blueprint may require spending as much as three percent of GDP.

Rutte noted the possibility of new targets to address gaps in military equipment and underscored the urgency of addressing production inefficiencies in Europe's defense industry.

"We are producing not enough at too high prices, and the delivery is too slow," Rutte said. He urged NATO allies to collaborate on boosting production rates and reducing costs, noting that some countries are turning to South Korean suppliers due to inefficiencies in European production.

U.K. Foreign Secretary David Lammy emphasized the urgency of ramping up defense spending, citing global instability. "We're living in very dangerous times," Lammy said, highlighting Russia's role in conflicts beyond Ukraine, including in the Middle East and Africa.

U.S. Secretary of State Antony Blinken also reinforced the importance of NATO's collective strength, stating, "This is a time for every ally to lean in, not lean back." Blinken described a stronger NATO as essential for deterring aggression and maintaining global peace.

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