In the wake of rising defense spending, all NATO member budgets will be impacted starting this year, as reiterated by NATO Secretary-General Jens Stoltenberg during a press conference ahead of the NATO summit (June 24-25). Member nations have agreed to aim for defense spending of 5% of GDP by 2035, up from the 2% target set in 2014. However, Stoltenberg emphasized four critical points shaping the new regime: 1) An interim review is set for 2029, allowing potential adjustments based on global security conditions; 2) The heaviest increase in defense spending will occur by 2029; 3) Annual evaluations will track progress towards the 5% goal; 4) Exceptions similar to Spain’s may apply if collective targets are met. This marks a significant shift in financial accountability within NATO.
NATO’s New Financial Discipline: The 2029 Milestone and Annual Assessments
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