Dozens of countries have committed to increase the spend of their national revenue on defence to 5% within a decade. Previously it was 2%.
The announcement came at the NATO summit in the Netherlands overnight.
The U.S. has been pushing its allies to increase defence expenditure, including Australia.
However, Australia has not committed to the 5% because it is not a NATO member.
NATO summit
NATO is a military alliance of 32 European and North American countries.
The organisation’s founding treaty states: “An attack against one Ally is considered as an attack against all Allies.“
This binds members to go to war on each other’s behalf.
Australia is not a NATO member, but is considered an official “partner”.
Spending
Since 2006, NATO members have committed to spending at least 2% of their GDP (the total value of a country’s goods and services) on defence.
In the latest reporting update from 2024, 23 of 32 members met or exceeded the 2% target.
NATO countries spent more than $US1.4 trillion ($AU2.2 trillion) on defence last year.
Portugal, Italy, and Spain are among the nine countries that fell short of the 2% measure.
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New pledge
NATO members have now agreed to increase GDP spending to 5% by 2035.
In a joint declaration, the “allies” agreed to the plan, broken down into two spending areas: military and national security.
Core military spending will go towards areas like munitions and warships.
National security will involve cybersecurity and infrastructure.
The spending commitment will be reviewed in 2029.
NATO chief Mark Rutte has identified Russia and China’s military build-ups as major long-term threats.
Russian President Vladimir Putin and Chinese President Xi Jinping are vocally opposed to the alliance.
“I’m hopeful and cautiously optimistic we will get there,” Rutte told reporters in relation to the additional spending.
Spanish Prime Minister Pedro Sánchez has announced his country is exempt from the commitment, following protests against an increase in defence spending. U.S. President Donald Trump called Spain’s plans “terrible”.
Australia
Australia’s Defence Minister Richard Marles attended the NATO summit.
Earlier this month, U.S. Defence Secretary Pete Hegseth urged Australia and other allies to boost spending on defence. In response, Marles said Australia will determine spending figures “in our national interest”.
At the summit, Marles did not commit to a 5% GDP target. He said Australia has seen the largest “peacetime” increase in defence spending over recent years.
