> ## Content Index > Fetch the complete content index at: https://www.adriadefense.com/llms.txt > Use this file to discover other available public pages before exploring further. # NATO Leaders Approve Historic Increase in Defence Spending to 5% of GDP by 2035 - URL: https://www.adriadefense.com/nato-leaders-approve-historic-increase-in-defence-spending-to-5-of-gdp-by-2035/ - Published: 2025-06-25T19:30:00.000Z - Updated: 2025-09-27T19:34:15.000Z - Description: The decision marks a major shift in Allied defence policy, aiming to strengthen deterrence, resilience, and transatlantic industrial cooperation. - Author: AdriaDefense Desk - Tags: NATO, Industry, #NATO defence spending, KFOR, Western Balkans, EU **THE HAGUE** – NATO member states have agreed to a **significant increase in defence spending**, committing to allocate **5% of GDP annually by 2035**, up from the current 2% target. The decision was announced at the conclusion of the **NATO Summit in The Hague**, held on **24–25 June**, and was described as a **“decisive step”** toward ensuring the Alliance’s **effective deterrence and defence posture**. NATO Secretary General **Mark Rutte** said the new **defence investment plan** reflects the Alliance’s recognition of **long-term security threats**, particularly from **Russia**, and the need for sustained investment in **core defence capabilities** and **critical infrastructure**. > “This plan is crucial to ensuring that NATO remains ready and capable in a changing security environment,” Rutte said, emphasizing that **European Allies and Canada** must shoulder a greater share of responsibility for their own defence. During the summit, **U.S. President Donald Trump** welcomed the decision, calling it a **“major leap”** from the previous 2% goal. > “I’ve been asking them to go up to five percent for years, and now they’re doing it. It’s a big step,” he stated. This summit marked **Trump’s first attendance** since returning to the presidency and **Rutte’s first** as NATO’s Secretary General. --- ### **Key Details of the Spending Plan** The **Summit Declaration** outlines a **comprehensive framework** for the new target: - **3.5% of GDP** will be dedicated to **core defence requirements**, including modernization, readiness, and NATO Capability Targets. - Up to **1.5% of GDP** will be invested in **critical infrastructure protection**, **cyber defence**, **civil preparedness**, **innovation**, and **strengthening the defence industrial base**. Allies will submit **annual plans** showing a **credible path** toward the 5% target, with progress to be **reviewed in 2029** in line with the evolving strategic environment. The declaration also reaffirms Allies’ **commitment to support Ukraine**, stating that direct contributions to Ukraine’s defence and its defence industry may be counted within the 5% framework. The document further pledges to **expand transatlantic industrial cooperation**, **remove defence trade barriers**, and **promote innovation** across NATO’s industrial ecosystem. --- ### **Western Balkans Perspective** Although the **Western Balkans** were not explicitly mentioned in the Declaration, Rutte stressed that NATO remains **deeply concerned** about the region. > “We are closely monitoring the situation. NATO maintains **KFOR in Kosovo** and supports **EUFOR in Bosnia and Herzegovina**. We continue to engage with regional leaders to ensure stability,” Rutte said. Regional representatives, including **Albanian Prime Minister Edi Rama**, **Montenegrin President Jakov Milatović**, and **North Macedonian President Gordana Siljanovska-Davkova**, participated in the summit. Rama noted that discussions focused on NATO’s **ongoing role in the Western Balkans** and the development of the **New Port of Durres**, envisioned as a **strategic military terminal**. Milatović welcomed the 5% decision, calling it **“crucial for strengthening NATO’s collective defence capabilities and safeguarding citizens and economies.”** --- ### **Looking Ahead** The 5% commitment represents the **largest coordinated defence spending increase** in NATO’s history and signals a **new era of strategic investment**. The move is expected to boost **industrial cooperation**, **technological innovation**, and **supply chain resilience**, while reinforcing NATO’s **collective deterrence** across Europe and beyond.