Following President Trump’s successful push for NATO allies to commit to spending 5% of GDP on defense by 2035, Europe now faces the potentially insurmountable challenge of reversing decades of military neglect. Building a force capable of defending the continent against Russia or China will be a massive undertaking, made even more difficult by declining birthrates, a shrinking workforce, and the political cost of maintaining generous welfare states and pacifist norms.
NATO allies agreed on June 25, 2025, to more than double their defense spending target from 2% of GDP to 5% by 2035, with the commitment structured as 3.5% for “core defense” and 1.5% for broader security measures including infrastructure and cyber defense. This achievement was widely praised, with NATO Secretary General Mark Rutte stating: “Would you ever think that this would be the result of this summit if he would not have been re-elected president? … I think he deserves all the praise”. However, the magnitude of this commitment becomes clear when examining current spending levels and capability gaps.
In 2024, European NATO members spent a combined $454 billion on defense, just 30% of total NATO spending, while the United States spent $997 billion, or 66%. Reports claim European military spending rose by 17% to $693 billion in 2024, but that figure misleadingly includes Russia’s estimated $149 billion. Given that NATO exists primarily to deter Russian aggression, it is absurd to include Russia’s defense budget in Europe’s total.
Even in terms of GDP percentage, Russia continues to outpace the European Union in defense spending. The EU’s total defense spending is projected to reach around 2.04% of GDP in 2025, while Russia is expected to spend 7.5% of its GDP on the military. But the gap in spending is just one part of Europe’s broader capabilities deficit.
Unlike Russia or the United States, Europe’s $454 billion in defense expenditures is fragmented across more than 30 countries, each with its own command structure, procurement system, administrative overhead, and military bureaucracy. In contrast, the United States achieves far greater efficiency and combat power through its unified $997 billion defense budget, which supports a single military structure with global reach.