NATO leaders bulk up defense spending pact

International allies agreed Wednesday to invest 5% of their countries' gross domestic products annually in defense and security spending by 2035. The newly brokered rate is more than double the previously agreed 2%. NATO leaders noted the importance of being united amid serious security threats from Russia’s war in Ukraine and continued unrest in the Middle East.

At least 3.5% of that GDP investment should go toward defense only, with the remaining 1.5% for defense-related efforts like protecting critical infrastructure and civil preparedness, according to the Wednesday declaration. Leaders also reaffirmed commitments to industrial cooperation on emerging technology. NATO countries also agreed to work towards eliminating trade barriers between allies, and ended by looking forward to meeting next year in Turkey, then Albania in 2027.

How are people responding? Allies laid the foundations for a stronger, fairer, and more lethal NATO, said the bloc’s Secretary-General Mark Rutte. The new agreement bolsters the collective defense of NATO regardless of what types of threats appear, he said. Rutte credited U.S. President Donald Trump for championing the defense spending boost and noted that the United States essentially meets the 5% goal already. British Prime Minister Keir Starmer echoed Rutte’s sentiments.

Finnish President Alexander Stubb described the Wednesday agreement as a win for Trump and Europe.

However, several countries, including Spain, Belgium, and Slovakia, signaled hesitation about the goal. Spanish Prime Minister Pedro Sánchez specifically refrained from signing the defense agreement because of the 5% GDP goal. Alliances are based on the capability of each member state, which is fairly common sense, according to Sánchez. If some countries want to spend 5%-6%, that's their sovereign right, he said. This goal has to be met in a finite period, but Spain’s spending plan isn’t going to change from what’s currently forecast, which is 2.1%, Sánchez explained.

Dig deeper: Read Elizabeth Russell’s report for more about Trump’s comments on the Iran-Israel conflict on Wednesday.