NATO Adopts 5% Defense Spending by 2035: What it Means

Key Takeaways

• NATO members have agreed to spend 5% of their GDP on defense by 2035; a priority that will reshape budgets for the next decade.
• To spend more on defense means increasing government revenues substantially, or pulling funding from other government priorities
• Currently, every NATO member spends less on defense than on health or education
• However, a 5% GDP defense target would push 21 of them to spend more on the military than they currently spend on schools.