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Europe and Canada will continue to lag significantly behind the US in military spending

NATO expects defense spending by European member states and Ottawa to increase by 15.9% in 2025

Aug 28, 2025 21:30 290

Europe and Canada will continue to lag significantly behind the US in military spending  - 1

European NATO allies and Canada may increase their spending in 2025 by less than last year, according to a report based on spending forecasts published today by the Western defense alliance, DPA reported, BTA reported.

NATO expects defense spending by European member states and Ottawa to increase by 15.9% in 2025 and reach a total of $559 billion, after an annual increase of 18.6% in 2024.

This means that Europe and Canada will continue to lag significantly behind the US, whose defense spending is expected to reach $845 billion. dollars in 2025, according to NATO data.

The final figures for 2025, however, are still subject to change.

Germany's defense spending for the current year is estimated at 2% of gross domestic product (GDP) in the NATO report, although Berlin has committed to spending 2.4% of GDP.

In June, NATO Secretary General Mark Rutte announced that all member states except Iceland plan to spend at least 2% of their gross domestic product on defense this year.

This means that NATO allies have achieved their 2% target for 2024, which was originally agreed in 2014, a year late.

Also in June, NATO member states agreed, under pressure from US President Donald Trump, to spend at least 3.5% of GDP to be invested in defense.

In addition, another 1.5% will be spent on defense-related spending, such as infrastructure, to reach a total quota of 5% of GDP.