The cost of getting Nato ‘war-ready’: Map shows much more states could have to pay to hit alliance’s new 3.5% target – with Germany facing $62bn a year bill, Italy $46bn and the UK $40bn

By JAMES TAPSFIELD, POLITICAL EDITOR FOR MAILONLINE

Published: 11:33 BST, 5 June 2025 | Updated: 11:36 BST, 5 June 2025

The scale of extra spending being demanded of Nato countries has been laid bare today as the US ramps up pressure.

Countries such as Germany face finding upwards of $60billion a year more for the military if a mooted increase in the target goes ahead.

The increase in Italy would be equivalent to around $46billion, Canada $45billion, France £44billion and the UK roughly $40billion. Spain – which has not invested heavily in defence up to now – could need to allocate an additional $36billion despite its economy being much smaller.

Amid the threat from Russia, members of the alliance are expected to be asked to agree to commit 3.5 per cent of GDP by the 2030s at a summit later this month. A further 1.5 per cent would be required for defence-related measures.

The cash cost of such a goal for each country have been estimated by comparing the Nato figures for spending levels in 2024 to World Bank figures for the size of GDP.

The current target is 2 per cent, which has not been met by all states. Only Poland currently tops the 3.5 per cent level. 

The US itself spent 3.38 per cent on defence in 2024, although the sheer size of its economy meant that dwarfed contributions from the rest of the alliance. 

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NATO Secretary General Mark Rutte (R) and US Secretary of Defence Pete Hegseth deliver remarks in Brussels, on June 5, 2025

Britain allocated 2.33 per cent of GDP to defence last year, and Keir Starmer has committed to reaching 2.5 per cent by April 2027.

There is an ‘ambition’ of increasing that to 3 per cent in the next parliament – likely to run to 2034.

However, the PM and the Defence Secretary have already come under pressure to explain how the 3 per cent target could be met.

Senior figures including former Nato chief and Labour minister Lord Robertson have questioned whether the new goals are ‘realistic’. 

Attending a Nato summit in Brussels this morning, US defence secretary Pete Hegseth was asked whether he believed the UK would meet the new even higher level: ‘It’s important they do,’ he replied. 

He said: ‘It’s a deterrence and peace through strength, but it can’t be reliance. It cannot and will not be reliance on America in a world of a lot of threats.’

Standing alongside Nato general secretary Mark Rutte, Mr Hegseth said: ‘Every shoulder has to be to the plough.

‘Every country has to contribute at that level of 5 per cent as a recognition of the threat.’

According to the alliance’s figures, the US pumped $755billion into defence in 2024. In contrast, Europe and Canada spent just $430billion

Arriving in Brussels this morning, Mr Rutte told reporters he expects allies will ‘agree on capability targets’ today.

‘What we will do today is to decide what do we need…to defend ourselves,’ he said.

‘So, as you know, to prepare for war, spend more. And when you originally prepared for war, you will not be attacked.’

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The cost of getting Nato ‘war-ready’: Map shows much more states could have to pay to hit alliance’s new 3.5% target – with Germany facing $62bn a year bill, Italy $46bn and the UK $40bn

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