“For too long, one ally, the United States, carried too much of the burden of that commitment — and that changes today,” Rutte said. “President Trump—dear Donald—you made this change possible... we will produce trillions more for our common defense to make us stronger and fairer by equalizing spending between America and America's allies."
The new agreement commits every NATO country to spend five percent of GDP on defence by 2035, more than doubling the previous target of 2 percent. The commitment will be split into two categories: 3.5 percent for core military needs, such as fighter jets and weapons systems, and 1.5 percent for broader defence-related investments, including infrastructure.
Prime Minister Mark Carney confirmed Canada’s participation in the pledge, saying the participation was essential for national security. “The world is increasingly dangerous and divided. Canada must strengthen our defence to better protect our sovereignty, our interests, and our Allies,” he said in a statement, according to CTV News.
Earlier this month, Carney announced Canada would finally meet NATO’s longstanding two percent target in the current fiscal year. That change came after $9.3 billion increase in defence spending following years of pressure from allies.
In an interview with CNN International, Carney said Canada’s future five percent commitment would amount to roughly $150 billion per year.
He added that much of this new spending would build on programs already underway. “A little less than a third of that overall number is spending on things that, quite frankly, we’re already doing to build the resilience of our economy,” Carney told CNN’s Christiane Amanpour.
“So, it would be domestic resilience, it would be defending the areas that are important to defend, but also supporting critical minerals development.”
The announcement is one of NATO’s most significant financial shifts in decades.
