Contexts

NATO, or the North Atlantic Treaty Organization, was established in 1949 primarily for collective defense against potential aggression, and since its inception, one of its key components has been the commitment of member nations to spend a certain percentage of their Gross Domestic Product (GDP) on defense. The current guideline, established in 2014 during the Wales Summit, calls for NATO members to aim for a defense spending target of at least 2% of their GDP by 2024. This commitment was underscored by the changing global security environment, particularly in response to increased military activity from Russia and other threats. Prior to this summit, spending commitments varied significantly among member states, leading to concerns about burden-sharing and the overall effectiveness of NATO's collective defense capability. Historically, NATO spending commitments have evolved through various summits and agreements. The Cold War era saw significant military expenditures as member countries focused on deterrence against the Soviet Union; however, after the Cold War, many nations reduced their defense budgets, concentrating on peacekeeping and other security initiatives rather than traditional military preparedness. As a result, by the early 2000s, a number of member states were struggling to meet even the previous aspiration of spending 2%, which had been an informal guideline rather than a formal benchmark. This disparity raised questions about the alliance's readiness and collective security framework. In 2016, NATO leaders reaffirmed their commitment to increasing defense spending, acknowledging that the previous levels were insufficient given the evolving global threats. Since the Wales Summit, many NATO members have made significant strides in increasing their defense budgets. By 2020, a number of countries, including Poland, the Baltic states, and Romania, achieved the 2% target, demonstrating a commitment to modernizing their armed forces and contributing to collective security. The United States has consistently urged its allies to honor their financial commitments to share the defense burden more equitably. While some nations have improved their spending, challenges remain, as several members still fall short of the target, causing ongoing debates about collective security and individual responsibilities. As of mid-2025, NATO spending commitments continue to be critical in shaping the alliance's response to global security challenges. The rise of China as a strategic competitor, ongoing conflicts in Eastern Europe, and persistent terrorism all no longer render traditional approaches sufficient. As such, there is a growing emphasis on not just meeting spending benchmarks but also ensuring that reforms to military capabilities and readiness are scaled to match these financial commitments. The member nations recognize that substantial investment in defense is not simply a financial obligation but a necessity for maintaining peace and security within the Euro-Atlantic area. Ultimately, the future of NATO will depend on its collective ability to adapt to new security challenges while maintaining unity in defense spending commitments.