Nato allies will commit to a target of spending 5% of gross domestic product (GDP) on defence this week, the alliance’s chief has indicated.
Prime Minister Sir Keir Starmer is among the world leaders expected in The Hague in the Netherlands this week for the Nato summit.
Nato secretary general Mark Rutte said a defence investment plan, set to be agreed at the gathering, “introduces a new baseline, 5% of GDP to be invested in defence”.
Speaking at a press conference ahead of the summit, former Dutch prime minister Mr Rutte said the move would be a “quantum leap”.
He told reporters: “As the world becomes more dangerous, allied leaders will take bold decisions to strengthen our collective defence, making Nato a stronger, a fairer and a more lethal alliance.
“This will include a major new defence investment plan, raising the benchmark for defence investment to 5% of GDP.”
He said the defence plan “that allies will agree in The Hague introduces a new baseline: 5% of GDP to be invested in defence.
“This is a quantum leap that is ambitious, historic, and fundamental to securing our future.”
Sir Keir has committed to spend 2.5% of GDP on defence from April 2027, with a goal of increasing that to 3% over the next parliament, a timetable which could stretch to 2034.
It was reported on Sunday evening that Spain has reached a deal with Nato that would see it excluded from the 5% spending target.
Prime Minister Pedro Sanchez said that Spain would be able to keep its commitments to the 32-nation military alliance by spending 2.1% of GDP on defence needs.
US President Donald Trump has previously called for nations in the bloc to commit to 5%.
Defence was one of the areas that benefited at the spending review earlier this month, when figures published by the Treasury showed that average annual real-terms growth for defence between the 2023-24 and 2028-29 financial year is 3.6%.