The Atlantic Alliance saw a real-term increase in defence spending in 2022, marking the eighth consecutive year of growth. Overall, defence outlays rose by 2.2 percent in real terms, translating to an additional 350 billion in military spending since 2014. Yet Spain’s position remains lower among the alliance, and—following Luxembourg—Spain sits near the bottom with an expenditure of 1.09 percent of GDP. This figure is close to half of the target set for the coming year, based on provisional NATO data. NATO’s Secretary General, Jens Stoltenberg, noted that while Allies have pushed spending higher since 2014, the pace is not yet aligned with the risks of today’s security environment. The international security landscape demands swifter action as global threats evolve.”
The Norwegian leader, who will finish his term at the end of September, pointed out that many allies have signaled intentions to sharply raise defence budgets, particularly in response to Russia’s invasion of Ukraine. He emphasized that promises must translate into real funds, concrete contracts, and tangible equipment because defence spending forms the bedrock of all strategic actions. He welcomed the progress achieved but insisted that more must be done quickly. Ahead of the Vilnius summit, he indicated he would urge NATO leaders to endorse a new defence investment commitment that is more ambitious than the current framework.
At the 2014 summit in Wales, Allied countries committed to allocating 2 percent of gross domestic product to defence spending by 2014. As of now, only seven nations meet or exceed this goal: the United States at 3.46 percent, Greece at 3.54 percent, Lithuania at 2.47 percent, Poland at 2.42 percent, the United Kingdom at 2.16 percent, Estonia at 2.12 percent, and Latvia at 2.07 percent. Stoltenberg expressed optimism that more nations are nearing the 2 percent threshold, arguing that increased investment is essential in a more dangerous security landscape. He underscored the need for sustained and accelerated defence spending.
Towards a More Ambitious Target
The call to action is to secure a new defense investment commitment that surpasses the current 2 percent GDP benchmark. Stoltenberg stated his expectation that Allies would approve a more ambitious target, reflecting the realities of a volatile security environment. Specifically, countries nearing the 2 percent line include Croatia at 1.89 percent, France at 1.89 percent, Slovakia at 1.76 percent, Romania at 1.75 percent, and the Netherlands at 1.64 percent. Earlier assessments of defence expenditure show notable gains year over year, though some nations still face challenges on this front.
However, several countries remain toward the lower end of the spectrum. Luxembourg, Spain, Belgium, and Slovenia recorded modest shares, while Canada stood at 1.29 percent. The latest alliance-wide data also show a shift in the composition of spending, with a substantial share dedicated to equipment purchases rather than other categories of defence costs.
According to the Alliance’s annual report, 26 of the 30 allied member states increased their military spending in the previous year, while only three nations—the United States, Turkey, and Montenegro—reduced their defence outlays. The same report indicates broad adherence to a second political commitment laid out almost a decade ago: to allocate about 20 percent of defence spending to the procurement of equipment. Among the 30 allies, 25 meet this equipment procurement target. In Spain’s case, roughly a quarter of total defence spending is directed toward equipment purchases.