NATO's Economic Surge: Europe and Canada's Defence Spending Spike by 20% in 2025

NATO's European allies and Canada have boosted their defense spending by 20% in 2025. This increase comes amid NATO chief Mark Rutte's call for continued progress towards a 5% GDP defense expenditure goal. U.S. President Donald Trump has criticized European allies for inadequate spending and lack of support for the U.S.-Iran conflict.

NATO's European allies and Canada have increased defense spending by 20% in 2025 compared to the previous year, according to NATO chief Mark Rutte's report. He urged member nations to sustain the momentum, stressing the need for a strong transatlantic bond in times of global uncertainty.

U.S. President Donald Trump has consistently demanded that NATO partners significantly enhance their defense expenditures. The U.S. administration insists that European allies should primarily assume responsibility for defending the continent. Recently, Trump accused NATO allies of failing to support the U.S.-Israel conflict with Iran.

Rutte highlighted that all NATO Allies had met or exceeded the original 2% defense expenditure target set in 2014. Countries have agreed to spend 5% of GDP on defense by 2035, with increased allocations for both core and broader defense initiatives.

(With inputs from agencies.)