US President-elect Donald Trump has called for NATO allies to increase their defense spending to 5% of their annual gross domestic product (GDP), a significant rise from the current 2% commitment. This demand, made during a press conference, has stirred discussions in European capitals just weeks before Trump resumes his presidency.
At a NATO summit in Washington last year, it was reported that approximately two-thirds of NATO members spent 2% or more on defense. Poland remains the only member spending over 4%, with its expenditure at 4.12% of GDP. Analysts suggest that achieving a 5% target is unrealistic given the current economic climate in many European nations.
Some experts view Trump's demand as a negotiating tactic, with a more feasible increase to 3.5% being suggested as a potential compromise. NATO chief Mark Rutte has emphasized the need for Europe to bolster its defense capabilities in light of Russia's military investments, which range from 7% to 8% of GDP.
Countries like Italy and the UK face challenges in meeting increased spending demands. Italy currently spends 1.49% of GDP on defense, while the UK has allocated 2.33%. Both nations are grappling with domestic fiscal constraints that limit their ability to enhance defense budgets.
Germany, which is preparing for snap elections, has also seen its defense spending hover around 2.12%. Political upheaval and economic policies are complicating the situation further, as the country debates its military expenditure in the context of upcoming elections.
As negotiations between the incoming US administration and European allies are expected to be lengthy and complex, the focus may shift towards a compromise where spending increases are directed towards strengthening European defense industries rather than solely purchasing from American manufacturers.