US Defense Minister Beit Higseth holds a bilateral meeting with NATO Secretary -General Mark Retty (2nd L) in the Pentagon, Washington, DC, April 24, 2025.
Brendan Smalovsky AFP | Gety pictures
Fireworks can start during the NATO annual summit this week, as the United States pushes its allies to increase its defensive spending sharply to 5 % of the total local products (GDP).
The number is 5 % of 3.5 % of GDP that should be spent on the “pure” defense, with 1.5 % of GDP goes to security infrastructure, such as cyber war capabilities and intelligence.
While some member states He says They are pleased to strike this teacher, and some countries are not very far from that mark, while others do not fulfill the 2 % agreed upon more than a decade. Although they may pledge to increase defensive spending, whether these promises are fulfilled will be the main question.
Talk is cheap and time schedules can be mysterious – but the concerted action is what the United States and President Donald Trump desires, which are attending the NATO summit for the first time since 2019, in his vision.
US President Donald Trump arrives at the NATO summit at Group Hotel in Watford, northeast London on December 4, 2019.
Christian Hartmann AFP | Gety pictures
“The United States is looking for everyone to say,” said, “Yes, we mean that,” said Court Volker, the former American ambassador to NATO and his distinguished colleague at the European Policy Analysis Center (CEPA) on Wednesday. We have a plan. 5 % real. We will get there. “
“But one thing must be monitored is whether the correspondence is actually on a point. Some correspondence from some of our European allies, at least when they raise their media and their Muslims, is,” Yes, 5 % but it is really 3.5 % and 1.5 %, and it can be immediately.
“If this is confirmed, you will have a clash with the United States,” Volker added.
High classes, low expectations
The risks are great with the Allied Meeting in The Hague in the Netherlands from 24 to 25 June, given the ongoing struggle in Ukraine and the Middle East war threatening to destabilize the global economy.
Defense analysts say this year’s meeting may be the most dependent in the history of the 77 -year -old coalition, as the United States was widely activated before the summit.
The US Defense Secretary, Beit Higseth, was confirmed, as he said 5 % “will happen” In a separate gathering of NATO earlier this month, with NATO Secretary -General Mark Retty also also delivering this message to the allies as well.
German air helicopters are photographed at PAJUOSTIS Airport in Panevezis, Lithuania on May 6, 2025, during the GRIFFIN Lightning 2025 “.
Petra Balasa AFP | Gety pictures
At that time, it can be said that at the height of the irritation of the White House leader with the bloc, only six member states achieved the target 2 %, including American times have changed; By 2024, 23 members reached a threshold of 2 %, According to NATO data.
While some have greatly transcended this goal – such as Poland, Estonia, the United States, Latvia and Greece – major economies including Canada, Spain and Italy have left the threshold of contribution. No member of NATO has reached the target of spending by 5 %, and some of them are likely to withdraw their feet when it comes to reaching this landmark now.
The photo taken during a visit to the “Dacian Spring” in Romania, on Monday, May 12, 2025.
Dirk Wim AFP | Gety pictures
The United Kingdom, Poland and Germany have already said that they intend to increase defense spending on the required goal, but their schedule is unclear. According to what was reported, the UK tries to delay the high spending within three years, According to the newspaper I. CNBC has communicated with Downing Street to comment.
Spain and Italy are seen as large dormitations for 5 %, After commitment only to reaching a 2 % threshold in 2025. Meanwhile, Canada spent 1.3 % of GDP for defense in 2024, NATO estimates indicateEven less than Italy, Portugal or Montenegro.
Jason Israel, an older colleague in the Defense Technology Initiative at CEPA, said on Wednesday that 5 % spending on defense is a goal, but not.
“Each one country … trying to know how they will get a needle of the ability to commit, but also make accounting work when each country must go beyond what is not lucky in general, huge increases in defensive spending,” he pointed out that it is “a long way of obligations …” to the actual ability, “
Europe must adhere
European airlines and defense companies follow the comments and obligations in NATO spending closely, but they say they are stuck in forgetting between pledges and work through concrete government purchases.
Leonardo leaders told the CNBC last week that the continent needs to act decisively and collectively for long -term obligations to defense spending and investment contracts to enable companies like them to expand their production capabilities and manufacturing capabilities.
“If we go by 3.5 % (from pure defensive spending) in the European part of NATO, this will mean a lot, and more power will be needed. But we need to better understand the goals of power,” said Michael Johansson, CEO of Swedish Defense Company Saab, for CNBC.
“We can do more, and I think we need to communicate in Europe to create more scope, and also in what we do to align the demand, and the requirements are compatible, so that we can actually be a competitive player at the international level. So there is still a lot to do,” he said.
“There is a lot of work to be done,” Roberto Singolani, CEO of the Italian Defense Company Leonardo.
“Leonardo has a program to enhance capacity at the present time because we are fully aware of the fact that we have to increase the production of specific platforms, defense systems, electronics and technological solutions. It is not only the issue of money, it is a priority issue. It is the issue of reducing fragmentation between countries in Europe,” he told CNBC at Charlotte at the Paris exhibition.
Singolani said that defense companies need to know what is expected early, given the complex nature of the global supply chains that support the defense industry.
“We have approximately 5,000 companies in the supply chain, we are in 160 countries in the world. So they are very complicated.” “You have to invest in the supply chain. You have to make investments. You have to protect the supply chain. But of course, we must also face a lack of raw materials … there is no simple solution. If there is a solution, we would not have already done so.”
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