NATO Approves 5% Defense Spending Target, Spain Secures Exemption

NATO leaders just agreed to a new plan: every member country should spend 5% of its economy (GDP) on defense by 2035. This is a big jump from the old target of 2%.

The decision came after strong pressure from the United States, which pays more for defense than any other NATO country and wants others to do the same.

The United States, led by President Trump, pushed for this change. American officials say it is not fair for the US to carry most of the costs. They want European countries to pay more to protect themselves and the whole alliance.

Many countries, especially Spain, worried about this new rule. Spain’s Prime Minister, Pedro Sánchez, said that spending 5% would force Spain to either raise taxes or cut important social programs.

Spain spends less than 1.5% of its GDP on defense now, so reaching 5% would be a huge change.

After long talks, Spain got a special deal. Spain will not have to meet the 5% target but will aim for a lower goal instead. This agreement will be made official at the NATO summit in The Hague.

NATO Approves 5% Defense Spending Target, Spain Secures Exemption

The new rule shows that NATO wants to be stronger and more ready for threats, especially with wars and tensions in places like Ukraine and the Middle East. But it also shows that not all countries agree on how much they should spend.

For businesses and taxpayers, this matters. If countries spend more on defense, they might have to spend less on other things like health or education.

Companies that make military equipment could see more business, but there may be less money for other projects.

NATO’s new plan tries to balance safety and money. The United States wants everyone to share the cost, but some countries, like Spain, say they cannot afford it.

The final deal shows that NATO can work out differences, but it is not always easy. This story is based on official statements and data from NATO and government leaders.