NATO allies agree on 5% GDP defence spending

NATO member states have agreed that their commitment to allocate 5% of GDP to defence will comprise two categories of defence investment.

According to The Hague Summit Declaration, the 5% commitment will consist of:

• At least 3.5% of GDP annually to fund core defence requirements.
• Up to 1.5% of GDP for initiatives such as critical infrastructure protection, cyber defence, civil preparedness and resilience, innovation and strengthening the defence industrial base.

The plan’s trajectory and cost balance will be reviewed in 2029, considering the strategic environment and updated defence capability goals.

NATO members, including the United States and Hungary, also agreed that aid to Ukraine’s Armed Forces will count towards defence spending.

The NATO summit in The Hague recognised Russia as a long-term threat to the Alliance.