NATO Allies Lift 2025 Defense Spending 20% to $574 Billion as All 32 Hit 2% Goal

3 articles · Updated · Foreign Policy · Jul 1

$574 billion in combined 2025 defense spending by NATO’s European members and Canada marked the alliance’s biggest single-year increase, rising 20% in real terms.
All 32 NATO allies are now meeting the 2%-of-GDP defense target for the first time since it was set in 2014, with Germany committing $114 billion, Poland nearing 5%, and Norway topping the U.S. in per-capita spending.
The surge reflects Europe’s response to a more strained U.S.-Europe relationship under Donald Trump and widening strategic gaps, especially Europe’s focus on Russia versus Washington’s focus on China.
The report argues the buildup signals not NATO’s decline but a renegotiation of burden-sharing, with Europe expected to take greater responsibility for conventional defense while the U.S. retains strategic enablers.

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5 Sources

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NATO’s Historic 2025 Defense Spending: All Members Hit 2% GDP, Eyes Set on 5% by 2035

Overview

In 2025, all 32 NATO members achieved a historic milestone by meeting or exceeding the 2% GDP defense spending target, with European allies and Canada raising their combined share from 1.7% in 2020 to 2.3%. Countries like Poland, Lithuania, Latvia, and Estonia led with even higher percentages, reflecting a strong response to growing security threats. This collective effort was driven by increased geopolitical pressures and calls for fairer burden-sharing, especially after the 2024 US election. Looking ahead, NATO has set an ambitious goal for 2035, aiming for members to dedicate 5% of GDP to defense and broader security, signaling a new era of alliance commitment.

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