NATO countries agree to hike defense spending to 5 pct of GDP by 2035

North Atlantic Treaty Organization (NATO) Secretary General Mark Rutte attends a press conference during the NATO summit in The Hague, the Netherlands, June 25, 2025. [Photo/Xinhua]

Member states of the North Atlantic Treaty Organization (NATO) have agreed to raise their defense spending to 5 percent of gross domestic product (GDP) annually by 2035, according to a declaration issued on Wednesday following the high-level summit in The Hague.

The five-paragraph statement outlined that the new spending target will be split between two key categories: 3.5 percent for core defense and 1.5 percent for related areas, including critical infrastructure, networks, and defense industrial capabilities.

The plan will undergo a review in 2029, taking into account the strategic environment and revised capability targets, the document added.

U.S. President Donald Trump hailed the agreement at a press conference after the summit, asserting that Washington had long carried more than its fair share of the alliance's defense burden.

However, he singled out Spain, criticising Madrid as the only country refusing to meet its full commitment.

Trump said the United States is negotiating a trade deal with Spain and warned that Madrid could be made to "pay twice as much" through trade measures.

Spain has agreed with NATO to limit its military spending to 2.1 percent of GDP, Spanish Prime Minister Pedro Sanchez announced on Sunday, ahead of the NATO summit.

In his Sunday statement, Sanchez warned that "rushing toward 5 percent" would lead to rising prices and public spending, and reduce investment in key sectors such as education and digital development.

Calling the 5 percent target "disproportionate and unnecessary" for Spain, Sanchez emphasized that Spain is "one of the five NATO countries with the most troops deployed worldwide." He also stressed that "asymmetry within NATO is normal and inevitable," citing the economic diversity among allies.