BRUSSELS — In anticipation of the upcoming NATO summit, which is just under two weeks away, Sweden and the Netherlands announced plans on Friday to boost their defense spending to 5% of their GDP, aligning with demands from U.S. President Donald Trump.
President Trump, along with leaders from NATO, is set to convene in the Netherlands on June 24-25 to discuss and decide upon a new defense spending target. One of Trump’s key stipulations is that Europe should enhance its own security posture while the United States turns its focus toward China and its own borders.
Swedish Prime Minister Ulf Kristersson announced that Sweden will commit to meeting NATO’s new spending benchmark of 5% of GDP. Out of this, a minimum of 3.5% will be dedicated to critical defense needs to meet NATO’s new capability standards.
Kristersson highlighted the strategic necessity for Sweden to prepare for potential threats from Russia due to its particular geographical position, emphasizing the importance of this commitment during a discussion with NATO Secretary-General, Mark Rutte, in Stockholm.
In response to Russia’s comprehensive invasion of Ukraine on February 24, 2022, NATO’s 32 member nations agreed to allocate at least 2% of their GDP toward military expenditures. However, new directives from NATO for securing Europe and North America against a potential Russian offensive now call for a 3% investment.
The current objective is to increase core defense expenditure to 3.5%, focusing on assets such as tanks, fighter jets, air defense systems, missiles, and the recruitment of additional military personnel. An extra 1.5% will be utilized for infrastructural developments like roads, bridges, ports, and airfields to enable rapid troop deployment, and to bolster societal readiness against possible threats.
The latest NATO data showed Sweden spent approximately 2.25% of its GDP on defense last year, with the Netherlands at 2.06%, among 22 allies who met NATO’s previous benchmark.
On Friday, the Dutch interim government unveiled plans to raise defense spending to 3.5% of GDP to work toward the 5% target. The source of the roughly 18 billion euros ($20 billion) required for this increase remains uncertain.
Dutch Defense Minister Ruben Brekelmans described the decision as “historic,” expressing hope that other NATO nations would follow suit in boosting their defense budgets.
“It is my belief that this will happen,” Brekelmans commented.
Nations such as Poland and the Baltic states — Estonia, Latvia, and Lithuania — have already declared their commitment to the 5% target. Last week, Rutte mentioned that a majority of allies were prepared to support this goal.
A significant issue that remains unresolved is the timeline for countries to achieve the new spending benchmarks. Initially, a 2032 target date was suggested, but Rutte cautioned that Russia might be in a position to strike NATO territory by 2030.
The United States is advocating for an accelerated timeline. However, Italian Foreign Minister Antonio Tajani indicated on Thursday that Italy aims to reach the 5% goal, though it would take roughly a decade to do so.