In a historic first, NATO confirmed a major milestone in 2025. All member countries have met the 2% defence spending target. This goal has been discussed for many years. It measures how much of a country’s income is spent on defence. The achievement reflects stronger unity among allies. It also comes amid rising global tensions. Nations are now placing greater focus on security and military readiness.
A Major Moment for NATO
For the first time in its history, every member of NATO has reached the alliance’s defence spending target of 2% of their national income, according to its 2025 annual report. This benchmark shows how much of a country’s total economic output, or GDP, goes into defence and military needs.
NATO members agreed on the 2% goal years ago to ensure that all member nations contribute fairly to the alliance’s collective security. For a long time, several countries struggled to meet this target due to budget limits and competing domestic priorities. Meanwhile, nations like the United States consistently spent far more, creating an imbalance within the alliance.
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In 2025, all 32 NATO members finally met or exceeded the 2% mark. This includes major economies such as the United States, Germany, and the United Kingdom, along with smaller nations, showing a stronger, more united commitment to defence spending, military readiness, and shared global security efforts.
Countries That Increased Spending the Most
Spain became one of the most discussed examples in NATO’s latest report. At the start of 2025, its defence spending stood at around 1.3% to 1.4% of GDP, clearly below the alliance’s 2% target. This gap had placed Spain among the countries under pressure to increase their contributions. By the end of the year, however, Spain significantly boosted its defence budget and successfully reached the required 2% level, marking a notable shift in its approach.
NATO Secretary General Mark Rutte praised the effort, highlighting that Prime Minister Pedro Sánchez had personally confirmed the country’s commitment. Rutte emphasized that this increase was not temporary, but involved “billions and billions” of additional spending in a structured and long-term manner. This reflected a clear political decision to prioritise defence more seriously than before.
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Even after reaching the target, Spain still ranks among the lower contributors in total military spending within NATO. This is mainly because larger economies naturally spend more in absolute terms, even if smaller countries meet the same percentage goal. Alongside Spain, countries such as Albania, Belgium, Canada, and Portugal also had to make significant efforts to raise their defence budgets.
These increases did not happen easily. Governments had to adjust national budgets, shift spending priorities, and make difficult political choices, including cutting funds in other areas or considering higher taxes. Despite these challenges, the shared goal of collective security pushed countries to act, resulting in more balanced contributions across NATO members.
Rising Security Concerns Driving Spending
The rise in defence spending across NATO is closely linked to growing global security concerns. NATO leaders have pointed to ongoing tensions and conflicts as key reasons for this shift. Many countries now feel the need to strengthen their military capabilities and stay prepared for possible threats.
A major factor behind this change is the continued threat perception from Russia under President Vladimir Putin. After recent conflicts in Europe, several NATO nations have increased their focus on defence readiness. Secretary General Mark Rutte said the rising budgets reflect a shared understanding that the global security environment is becoming less stable.
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While reaching the 2% target is a significant milestone, discussions are already moving toward higher spending goals. Some NATO leaders have suggested increasing defence budgets to as much as 5% of GDP. However, not all countries agree on how quickly this should happen, with some facing economic pressures and domestic priorities.
The 2025 report shows that defence spending is rising across the alliance, driven by common concerns about safety and stability. Even though all members have met the 2% target, actual spending still varies widely, highlighting both unity and ongoing differences within NATO.