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NATO Allies Set 5% Defence Spending Target

Financial Express Delhi

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June 26, 2025

NATO leaders on Wednesday backed a big increase in defence spending and restated their commitment to defend each other from attack after a brief summit tailor-made for U.S. President Donald Trump.

- Andrew Gray, Sabine Siebold & Jeff Mason

In a statement, NATO endorsed a higher defence spending goal of 5% of GDP by 2035—a response to a demand by Trump and to Europeans' fears that Russia poses a growing threat to their security following the 2022 invasion of Ukraine. "We reaffirm our ironclad commitment to collective defence as enshrined in Article 5 of the Washington Treaty—that an attack on one is an attack on all," the statement said, after Trump had sparked concern on Tuesday by saying there were "numerous definitions" of the clause.

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