The North Atlantic Treaty Organization (NATO) has agreed to increase its defense expenditure to 5% of gross domestic product (GDP) by 2035.
Member countries agreed to raise their military expenditure targets from the current 2% to 5% by 2035 during a NATO summit held in The Hague, Netherlands, on the 25th.
The 5% target of GDP consists of a minimum of 3.5% expenditure dedicated to pure defense and 1.5% allocated to critical infrastructure related to security and defense. NATO member countries must submit annual plans to meet these targets each year.
NATO's decision to increase defense spending comes amid heightened threats from Russia and tensions in the Middle East. President Donald Trump has been urging European members and Canada to raise their defense spending to 5% of GDP.
NATO leaders reaffirmed their commitment to collective defense under Article 5, which states that an attack on one NATO member is considered an attack on all members.