Nato members to significantly boost defence budget to 5% of GDP

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Nato member states have agreed to spend 5 per cent of their GDP on defence spending. The deal, reached at the alliance’s annual summit at The Hague on June 25, 2025, is a significant increase from the previous mandate of 2 per cent on core defence spending. Member states will be expected to increase their budgets on core defence to 3.5 per cent of GDP. The remaining 1.5 per cent can be spent on areas such as defence infrastructure, civil preparedness, innovation or industrial resilience.

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