NATO's push to raise defense spending to 5% of GDP has ignited debates over its economic and social feasibility, particularly for European members already grappling with sluggish growth and political resistance. The proposal, set for approval at the alliance's summit in The Hague later this month, marks a sharp escalation from the 2% target set in 2014.
While 22 of NATO's 32 members met the 2% threshold in 2024, countries like Belgium, Canada, and Spain lag behind. U.S. President Donald Trump's call to more than double spending has added pressure, but economists warn the new target could strain public budgets. Defense analysts note that even with 10% annual growth, Europe would need a decade to reach 3% GDP spending.
The plan faces political headwinds in nations like Germany and France, where voters prioritize healthcare and education over military investments. Experts caution that diverting funds to defense could exacerbate inflation, reduce social welfare programs, and deepen fiscal deficits—risks that could reshape Europe's economic landscape for years.
