NATO EU member countries are ready to raise defense spending above 2% of GDP, says Costa

The 23 EU nations that are also NATO members are expected to reach an agreement to increase the defense spending target beyond the current 2% of national GDP during a summit in June, according to European Council President Antonio Costa.

U.S. President Donald Trump has been urging NATO allies to elevate their defense spending to 5% of GDP, a benchmark that none of the 32 NATO member countries, including the U.S., currently achieve.

Costa has arranged an informal gathering of EU leaders for next Monday to deliberate on defense and security investments, as he mentioned in an interview with Portuguese public broadcaster RTP on Wednesday. NATO Secretary-General Mark Rutte and British Prime Minister Keir Starmer are also slated to participate in this meeting.

Costa noted that the joint defense expenditure of the 23 EU NATO members has already reached the 2% target, having increased by 30% since Russia’s invasion of Ukraine in February 2022.

“There is a strong consensus among member states to pursue this trajectory,” he stated. “I expect that at the upcoming NATO summit in June, a target exceeding 2% will be established. Whether it will be 5% or 3% remains uncertain, as that will be determined by the member states within NATO.” The European Council, led by Costa, comprises the national governments of the 27 EU member states.

Analysts and officials have informed Reuters that allocating 5% of GDP to defense is politically and economically unfeasible for nearly all NATO members, as it would necessitate billions in additional funding. Nevertheless, they anticipate that the allies will likely agree to exceed the current 2% target during the June summit.

Costa, a former prime minister of Portugal, emphasized that Russia poses the primary threat to NATO, urging nations to focus on enhancing air defense, anti-missile capabilities, and electronic warfare systems.

He also noted that investment in defense technology and industry would bolster the competitiveness of the EU economy, suggesting that a discussion on “common funding” for collective defense will eventually be necessary. France and the Baltic states are advocating for joint European Union borrowing to finance defense expenditures, with the outcome of this discussion potentially influenced by the upcoming national election in Germany, which has thus far resisted the proposal.