Europe and Canada spent 20% more on defense in 2025.
This was announced by NATO Secretary General Mark Rutte, on the occasion of the presentation of the Alliance’s annual report at NATO headquarters in Brussels. Overall, the increase amounts to about 574 billion additional dollars, according to the estimates of the annual report.
This represents a significant increase in defense spending on the old continent for the second consecutive year, in response to the deteriorating geopolitical context and pressures for a greater European contribution within the Alliance. The new data also show that Poland, the Baltic countries, and several Nordic nations have surpassed the United States in terms of defense spending as a percentage of GDP, reports Bloomberg.
“I expect the Allies, at the next NATO summit in Ankara, to demonstrate that they are on a clear and credible path towards the 5% target,” Rutte said, adding that “a strong transatlantic bond remains essential in an era of global uncertainty.”
At the conclusion of last June’s NATO summit in The Hague, the 32 countries of the Atlantic Alliance approved the commitment to increase military spending up to 5% of GDP by 2035. This goal includes a division between 3.5% allocated to basic defense and an additional 1.5% for security-related investments, such as infrastructure, innovation, and civil preparedness. According to Rutte, this plan “makes NATO fairer and better rebalances the burden of our security.”
On the same day NATO presented the annual report, U.S. President Trump criticized the Atlantic Alliance allies, writing in a post on Truth Social that NATO countries have done “absolutely nothing” to help with Iran.
All the details.
ALL NATO ALLIES HAVE REACHED 2% OF GDP FOR DEFENSE
The Secretary General highlighted that for the first time all allies have declared they have reached the 2% of GDP target for defense. According to the report’s estimates, three NATO countries – Poland, Lithuania, and Latvia – already surpassed the new 3.5% target last year.
Total defense spending amounts to 1.4 trillion dollars, with a 6% increase compared to 2024. Overall, the alliance, composed of 32 member countries, spent 2.77% of GDP on defense in 2025.
“This shows that NATO Allies recognize the changed security context and the need to fulfill our collective obligations,” Rutte said.
THE WEIGHT OF THE UNITED STATES
U.S. defense spending saw a slight decrease in 2025, amounting to 838 billion dollars, while remaining higher than the total of the other Alliance members. The United States represented about 60% of the alliance’s defense spending in 2025. Specifically, the U.S. share of total NATO spending fell from 64% in 2024 to 59% last year.
THE ACCELERATION OF EUROPE AND CANADA
At the same time, Europe and Canada increased their overall spending for the second consecutive year, with a 20% increase. “Continuing this trend will be a priority in the coming years,” Rutte emphasized.
However, the report revealed wide discrepancies in spending among allies, notes Politico.
WHO SPENDS THE MOST…
In particular, Poland, Lithuania, Latvia, Estonia, Denmark, and Norway have exceeded the U.S. level of 3.19%. Warsaw recorded the highest spending as a percentage of GDP in the Alliance, at 4.3%. Germany reached 2.39% of GDP, about double compared to 2014.
…AND WHO SPENDS THE LEAST
Several countries, including Italy, France, Spain, and Canada, barely reached the 2% of GDP threshold.
SECURITY THREATS AND THE TRANSATLANTIC BOND
Finally, Rutte highlighted the international security context, identifying Russia as the main threat to the Euro-Atlantic area, citing in particular the invasion of Ukraine, now in its fifth year and supported, according to his words, by China, North Korea, Iran, and Belarus.
The Alliance’s Secretary General reiterated the importance of cooperation between Europe and North America: “A strong transatlantic bond remains essential in an era of global uncertainty. North America and Europe have always been stronger together in NATO, and that is how we will continue to stay safe in a more dangerous world.”
Rutte also recalled the ‘historic’ decision of the 2025 Hague summit to aim for a spending level up to 5% of GDP in the long term. The strengthening also marks a paradigm shift: “For too long European allies and Canada have overly relied on the military power of the United States, but there is a real change in mindset,” Rutte explained, insisting that “as a European, I am proud of what we are doing.”
