"Between 2014 and 2025, NATO Europe and Canada have more than doubled their annual defense expenditure, with a real-term increase of 106%. In 2025 alone, NATO Allies in Europe and Canada invested a total of $574 billion in defense, a 20% increase in real terms compared to 2024."
"This shows that NATO Allies recognize our changed security environment, and the need to meet our collective obligations."
"At $838 billion, US defense spending dipped slightly in 2025 compared to the previous year. Nevertheless, it still made up well over 50% of NATO expenditure."
"Europe and Canada's overall defense spending rose by more than 19% in absolute terms for the second year in a row."
NATO Secretary General Mark Rutte reported a significant increase in defense spending by NATO Europe and Canada, with a projected total of $574 billion in 2025. This represents a 20% real-term increase compared to 2024 and a doubling of annual defense expenditure since 2014. All allies are meeting the 2% GDP defense spending target, with some achieving the new 3.5% goal for 2035. The US defense spending slightly decreased but still constitutes over 50% of NATO's total expenditure, while European and Canadian spending rose significantly for the second consecutive year.
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