The move came after US Secretary of Defense Pete Hegseth echoed President Donald Trump’s call for NATO members to significantly increase their defense spending. Speaking ahead of the upcoming NATO summit in The Hague, Hegseth stated that allies should “seriously consider” Trump’s earlier demand that each member should invest 5% of GDP on defense, which is more than double of the current NATO guideline of 2%.
Trump had previously criticized NATO allies for not meeting their financial commitments, suggesting that the 2% target is insufficient given evolving global threats.
In response, NATO Secretary General Mark Rutte confirmed that the alliance is already considering a substantial shift in its spending targets. Rutte has proposed that member states boost their defense spending to 3.5% of GDP, along with an additional 1.5% commitment toward broader security-related investments, which could include cyber defense, infrastructure protection, and counter-hybrid threats.
“This new Defence Investment Plan will be at the heart of discussions at the NATO summit,” Rutte said, emphasizing the need for greater collective readiness and burden-sharing in a more volatile international landscape.
Defence stocks had begun their rebound from the lows after European countries had announced a massive spending boost to enhance their defence capabilities.
