Groundwork laid in Brussels for NATO leaders to debate 5% defence spending target

NATO defence ministers have made progress towards meeting U.S. President Donald Trump’s demand for members to invest five per cent of their GDP in their militaries and defence infrastructure. The ministers, who gathered in Brussels, approved a set of ambitious new capability targets aimed at strengthening the alliance and ensuring readiness for potential conflicts.
The funding for these targets will be a topic of discussion when NATO leaders convene in The Hague later this month. The proposal calls for allies to allocate five per cent of their GDP to defence spending, with 3.5 per cent earmarked for basic military capabilities and an additional 1.5 per cent for defence and security-related investments.
Canada, however, is currently below these benchmarks, as indicated in NATO’s 2024 annual report. The report shows that Canada spent 1.3 per cent of GDP on defence in 2023, with a projected increase to 1.45 per cent in 2024. Defence Minister David McGuinty stated that Canada is reviewing its expenditures, citing a recent $6 billion investment in a partnership with Australia for an Arctic radar system.
Under former Prime Minister Justin Trudeau, Canada faced criticism for not meeting NATO’s two per cent GDP target. This led to a commitment to reach the target by 2032. McGuinty did not specify a timeline for meeting the new five per cent benchmark but hinted that Prime Minister Mark Carney would address defence spending at the upcoming summit.
U.S. Defense Secretary Pete Hegseth expressed optimism that most allies are on board with the idea of reaching the five per cent GDP goal within the next decade. NATO Secretary General Mark Rutte has been advocating for these targets to appease Trump, with reports suggesting a target year of 2032 for member nations to comply.
Poland currently exceeds the 3.5 per cent target for military spending, while the United States allocates 3.4 per cent of its GDP to defence, boasting the world’s largest military budget. As discussions continue, the alliance aims to enhance its capabilities and readiness to address evolving security challenges.