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NATO has proposed that expenditures on cybersecurity and activities related to border and coastal security be included in the military alliance’s new defense-related spending target of 1.5% of GDP.
NATO has initiated negotiations with member countries to determine what expenditures will be eligible under the new spending target, which is expected to be adopted at a June summit, according to a document shared with member countries and individuals familiar with the matter. The total spending target will be 5% of GDP, consisting of 3.5% for hard defense expenditures and 1.5% for defense-related outlays.
Other eligible expenditures for the 1.5% portion may include spending on critical infrastructure protection, non-defense intelligence agencies, and space-related activities, as stated in the document.
A broader definition of defense-related outlays would facilitate countries’ ability to meet the target, with some nations advocating for the inclusion of expenditures such as counter-terrorism. NATO Secretary General Mark Rutte expressed his expectation that alliance members will approve the new 5% target.
A spokesperson for the North Atlantic Treaty Organization did not immediately respond to a request for comment.
Talks are expected to continue in NATO’s policy and planning committee on Wednesday, according to the document. The proposal is subject to change and will serve as the basis for discussion among alliance members, said individuals who spoke on the condition of anonymity.
Infrastructure expenditures, particularly those related to military mobility, are likely to be included, according to the document. These outlays must contribute to the military alliance’s defense plans or enable the use of core-defense spending activities.
Southern NATO countries are pushing for the inclusion of counter-terrorism related spending, according to some individuals. The inclusion of dual-use goods, excluding infrastructure, will also require agreement, emphasized individuals who stressed that an agreement must be reached before the summit.
Kyiv is pushing for Ukraine aid to be counted toward this spending, according to an individual familiar with the matter. This would enable the country to compensate for the fact that NATO is not currently discussing the renewal of last year’s €40 billion ($45.3 billion) pledge for Ukraine.
US President Donald Trump initially demanded that allies spend 5% earlier this year, after threatening to pull out of the alliance or only protect allies that spent enough on defense. Although the figure was initially considered unrealistic, European allies and Canada have come to understand that their spending must increase significantly.
Only 23 out of 32 allies have met the current spending target of 2%, according to NATO’s annual report published in April. However, all of them are expected to meet it by the summer, as reported by Bloomberg earlier.
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