European NATO members and Canada are expected to collectively reach the allianceā€™s 2% defence-spending goal for the first time, according to new figures released on Thursday.
- The milestone comes more than a decade after allies pledged the target at the 2014 Wales Summit, with countries such as Italy, Belgium, Spain and Portugal finally set to cross the threshold. Iceland remains exempt as it has no standing military.
- Combined defence expenditure among European allies and Canada is projected to hit 2.27% of GDP this year, up from 1.99% in 2024 and just 1.40% when the pledge was made. Including the US, the total rises to 2.76%.
- Poland remains NATOā€™s top spender relative to GDP at an estimated 4.48%, followed by the Baltic states. Overall spending in NATO Europe and Canada is expected to grow by 15.9% year-on-year.
- The figures come weeks after allies agreed to raise defence commitments dramatically, setting a new target of 3.5% for core spending and a further 1.5% for defence-related investment by 2035 ā€” a long-sought shift pushed by President Donald Trump.
European officials now await clarity on Washingtonā€™s future military posture as the US pivots attention toward the Indo-Pacific.