When NATO leaders gather in Ankara on 7-8 July, defence spending will dominate the agenda. The summit come as all NATO members for the first time have spent at least 2 per cent of gross domestic produce (GDP) on defence, a target which was adopted in 2014.
But that achievement has already been overtaken. At the Hague summit in June, NATO leaders agreed on a new goal of spending 5 per cent of GDP by 2035, including 3.5 per cent on core defence and 1.5 per cent on defence-related investments such as infrastructure, cybersecurity and resilience.
The Ankara summit will focus on how allies plan to meet those commitments, alongside continued military support for Ukraine and the alliance's long-term strategic direction.
The countries spending the highest share of GDP on defence are concentrated on NATO's eastern flank, close to Russia.
Poland leads the alliance at 4.48 per cent of GDP after rapidly expanding its armed forces since Russia's full-scale invasion of Ukraine in 2022. The country has invested heavily in modern equipment, including F-35 fighter jets, HIMARS rocket systems, Patriot air defences and South Korean tanks.
The Baltic states have also dramatically increased military spending. Lithuania spends around 4 per cent of GDP on defence, while Latvia and Estonia devote more than 3.3 per cent driven by concerns over their borders with Russia and Belarus.
Among Nordic members, Norway spends more than 3.2 per cent of GDP and has prioritised Arctic surveillance and naval capabilities, while Finland and Sweden have also accelerated defence investment since joining NATO in 2023 and 2024 respectively.
Although several European countries now spend a larger share of GDP on defence than Washington, the United States remains by far NATO's largest military power
U.S. defence spending reached roughly $838 billion in 2025, accounting for around 60 per cent of the alliance's combined defence expenditure despite representing about 43 per cent of NATO's total GDP.
The United States also contributes to NATO's common-funded budget, which finances headquarters, command structures and shared infrastructure. However, that contribution amounts to only a tiny fraction of overall U.S. military spending, highlighting the distinction between NATO's shared operating budget and national defence budgets.
The Trump administration is also expected to press ahead with a more than $700 million sale of General Electric jet engines for Türkiye’s KAAN fighter programme. The move is seen as a goodwill gesture ahead of next month’s NATO summit in Türkiye.
Many of NATO's largest European economies have only recently crossed the 2 per cent threshold after years of underinvestment. Germany has significantly increased defence spending since Chancellor Olaf Scholz announced the Zeitenwende (in English ‘turning point’) following Russia's invasion of Ukraine, backed by €100 billion in extra funding.
France remains one of Europe's largest military powers and one of NATO's two nuclear-armed European members, while the United Kingdom continues to spend comfortably above 2 per cent and remains one of Kyiv's strongest military supporters.
Elsewhere in Europe, countries including Italy, Belgium, the Netherlands and several Central European members have all crossed the 2 per cent mark after sustained spending increases over the past three years.
Canada also reached the 2 per cent benchmark in 2025 after years of pressure from Washington to contribute more.
The summit's host, Türkiye, spends around 2.33 per cent of GDP on defence and is NATO's second-largest army by personnel. Its strategic position, controlling access between the Mediterranean and the Black Sea through the Turkish Straits, has become increasingly important since the war in Ukraine began. Hosting this year's summit also reflects Ankara's growing influence within the alliance.
Despite progress, reaching the new 5 per cent target will be significantly more challenging. U.S. President Donald Trump has renewed longstanding criticism that European allies rely too heavily on American military power.
Since returning to office in 2025, he has repeatedly argued that many NATO members still do not contribute enough to collective security. Most allies have endorsed the new spending target, but Spain negotiated an exemption allowing it to remain at around 2.1 per cent of GDP, arguing that higher levels would be economically unsustainable.
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