European Union and NATO leaders are preparing for a major decision on increasing defense spending, with the 23 EU countries that are part of the Alliance likely to approve a new target above the current 2% of GDP. This was stated by European Council President António Costa, quoted by “Reuters“, reports News.bg.
According to him, there is “a very reasonable consensus“ to continue the policy of increasing military spending, which began after the Russian invasion of Ukraine in 2022. A new level is expected to be set at the NATO summit in June – whether it will be 3% or 5% of GDP remains to be decided within the organization.
Trump insists on 5%, but implementation is questionable
US President Donald Trump is urging NATO allies to increase defense spending to 5% of GDP - a goal that none of the 32 member states, including the United States itself, is currently meeting. Analysts warn that such a sharp increase in military budgets is politically and economically unfeasible for most members, as it would require billions of dollars in additional funding.
However, the expectation is that the countries will agree to an increase above the current 2% of GDP to strengthen the Alliance's collective security.
France and the Baltic states insist on joint defense loans
On February 5, António Costa will convene an informal meeting of EU leaders to discuss investment in security and defense. Among those attending will be NATO Secretary General Mark Rutte and British Prime Minister Keir Starmer.
Costa stressed that Russia remains the main threat to NATO and that countries must prioritize modernizing their air and missile defense systems, as well as electronic warfare technologies.
France and the Baltic states have proposed joint EU loans to finance defense spending - an idea that Germany has so far rejected. A decision on this issue is likely to depend on the country's upcoming national elections, which could lead to a change in its position.
In the long term, the debate on the "common financing" of European defense will become increasingly relevant, as investment in the defense industry not only strengthens security but also helps the competitiveness of the EU economy.