NATO Secretary-General Mark Rutte announced on Thursday that Allied nations, alongside Canada, reached record-breaking defense spending levels in 2025. According to an official report released today, total spending surged by 19.6% to $574 billion, surpassing the 19.4% growth recorded in 2024. Rutte emphasized the urgent need for allies to ramp up defense production and expenditure to ensure armed forces have the necessary resources for collective security and to sustain support for Ukraine’s defense. In a significant achievement for the alliance, all 31 member states met the 2% of GDP spending target in 2025, a goal originally established in 2014.
The report highlighted a substantial 20% increase in Germany’s defense budget, which reached €88.8 billion ($102.4 billion), representing approximately 2.4% of its GDP. Despite a slight decrease in its individual defense outlays, the United States remains the alliance’s largest contributor, outspending all other allies combined with an expenditure exceeding €838 billion. Rutte called for continued unity among governments and citizens to protect "peace, freedom, and prosperity," underscoring that the current geopolitical climate necessitates a rapid industrial scale-up to meet the evolving security requirements of the transatlantic alliance.