Military spending by NATO’s European allies and Canada climbed 20 percent in 2025, reaching $574 billion in real terms compared to the prior year.

Annual Report Highlights Momentum

NATO Secretary General Mark Rutte outlined these figures in his annual report released Thursday, emphasizing the need to sustain progress. “I expect Allies at the next NATO Summit in Ankara to show they are on a clear and credible path towards the 5 percent objective,” Rutte wrote. He added that “a strong transatlantic bond remains essential in an age of global uncertainty.”

All NATO allies met or surpassed the longstanding 2 percent GDP defense spending target in the previous year, with many achieving significant gains.

New Commitments and Country Progress

At last year’s summit, NATO leaders pledged to allocate 5 percent of GDP to defense and related investments by 2035. This includes 3.5 percent for core defense elements like troops and weapons, plus 1.5 percent for broader areas such as cybersecurity, pipeline protection, and infrastructure upgrades for military use.

Poland, Lithuania, and Latvia already exceeded the 3.5 percent core defense threshold last year. Spain, Canada, and Belgium reached the 2 percent mark. Across the 32-member alliance, defense spending averaged 2.77 percent of GDP in 2025, with the United States covering about 60 percent of the total.

US Pressure Continues

US President Donald Trump has consistently urged NATO partners to ramp up expenditures, arguing that European allies must shoulder more responsibility for continental defense. On Thursday, Trump posted on Truth Social criticizing NATO over Iran: “NATO countries have done ‘absolutely nothing’ to help with Iran. THE U.S.A. NEEDS NOTHING FROM NATO, BUT ‘NEVER FORGET’ THIS VERY IMPORTANT POINT IN TIME!”