The increase in defense spending will significantly impact national budgets starting this year for all NATO member countries. As reiterated by NATO Secretary-General Jens Stoltenberg during a press conference ahead of the NATO summit (June 24-25), members have agreed to aim for a target of 5% of GDP by 2035. This means that over the next decade, NATO members must increase their defense expenditures to 5% of GDP compared to the previous goal of 2% set in 2014, potentially reducing other social and investment spending while avoiding public debt escalation.
However, Stoltenberg highlighted four critical points defining the new regime:
1. While the deadline is officially set for 2035, an interim milestone has been established for 2029. By this time, NATO will reassess international security conditions and decide if additional collective spending increases are necessary.
2. The brunt of increased defense spending will occur before 2029, with Stoltenberg stating there will be “massive additional defense costs over the next three to five years.”
3. Progress toward the 5% target will be closely monitored through annual evaluations, marking a significant departure from past commitments like the Wales Summit pledge in 2014.
4. Spain may not be the only country eligible for exceptions from the 5% target, provided collective goals are met. Analysts interpret this as potential flexibility for certain nations under specific conditions.