 "British Prime Minister Keir Starmer said he would increase annual defence spending to 2.5 per cent of gross domestic product (GDP) by 2027. File image/AFP")
As the Russia-Ukraine war drags on, one of US President Donald Trump’s biggest grouses has been Europe’s defence spending, or as he claims lack of it, in comparison to Washington. In early February during an appearance at his Mar-a-Lago estate, he said, “Europe is in for a tiny fraction of the money that we’re in (for). “We have a thing called the ocean in between us, right? Why are we in for billions and billions of dollars more money than Europe?”
He further added that he wanted Nato members to spend five per cent of GDP on defence — more than double the alliance’s current spending target.
And it seems that British Prime Minister Keir Starmer has finally heeded Trump’s call, at least partially, as he announced on Tuesday that the country’s defence spending would be hiked to 2.5 per cent of the GDP by 2027, up by 0.2 per cent of the current spending. Starmer’s declaration, interestingly, came just hours before he departs for Washington where he will meet US President Donald Trump.
Starmer’s move shifts the spotlight on just how much European nations, especially Nato members, spend on defence.
How much will UK now spend on defence?
Standing up in British parliament on Tuesday, Starmer declared that the UK’s defence spending would increase to 2.5 per cent of gross domestic product by 2027, saying Europe is in a new era of insecurity that requires a “generational response.”
“We must stand by Ukraine, because if we do not achieve a lasting peace, then the economic instability and threats to our security, they will only grow,” Starmer told lawmakers in the House of Commons.
“And so as the nature of that conflict changes, as it has in recent weeks, it brings our response into sharper focus, a new era that we must meet as we have so often in the past, together, and with strength.”
Presently, the UK spends 2.3 per cent of its gross domestic product on defence — £59.8 billion. As per Starmer’s declaration, the increase would amount to an additional £13.4 billion ($17 billion) a year.
To enable this increase, Starmer has already slashed the aid budget — currently, £13.7 billion, which is 0.5 per cent of national income, it would drop to 0.3 per cent of national income.
The British PM said that such a move was necessary because “tyrants” like Russian President Vladimir Putin “only respond to strength”. Starmer said: “We should not pretend that any of this has been easy. Working people have already felt the cost of Russian actions through rising prices and bills.
“Nonetheless, one of the great lessons of our history is that instability in Europe will always wash up on our shores, and that tyrants like Putin only respond to strength.”
Starmer also set an ambition to hike defense spending to three per cent in the next parliament, which will begin in 2029 at the latest, after the next general election. That final target would depend on the fiscal conditions at the time, Starmer said.
Notably, the move comes just before Starmer meets Trump at the White House with many noting that it could make the US president more amenable in guaranteeing post-war Ukraine’s security, giving air, logistics and intelligence cover to European forces and helping to keep the peace on the ground.
Where does Germany stand?
The European giant, as per Nato records met the requirement of spending at least two per cent of gross domestic product (GDP) in the last financial year. In 2024, it spent €90.6 billion on defence in 2024.
However, incoming Chancellor Friedrich Merz has hinted at increasing the defence spending in an attempt to strengthen European security. As per a Bloomberg report, he is already in talks to infuse Germany’s special defence fund with another €200 billion ($210 billion).
Earlier, Germany had balked at Trump’s demand to increase defence spending to five per cent of gross domestic product, calling the figure both unrealistic and unnecessary. At the time, Germany’s Defence Minister Boris Pistorius had told Tagesspiegel, “Five per cent of our economic output would equal 42 per cent of the federal budget — that’s nearly every second euro the government spends, around €230 billion. We couldn’t manage or even spend that.”
Dismissing Trump’s call, the outgoing Chancellor Olaf Scholz said, “Five per cent would be over €200 billion ($204 billion) per year — the federal budget is not even €500 billion.”
What about France?
At present, the Emmanuel Macron -led country meets the Nato requirement of spending two per cent of its GDP and is on course to double spending by 2030. According to World Bank data, French defence spending rose to 2.1 per cent of GDP in 2023 after hovering below two per cent for most of the previous 20 years.
Moreover, France has projected that it would increase its defence spending from $60.4 billion in 2024 to $67.8 billion in 2029, as per a GlobalData report.
France has also rejected criticism levelled by the Trump administration on its defence spending. The French foreign ministry in response to US Secretary of State Marco Rubio’s remark that France was spending too little, said that Paris was among the 23 Nato member countries that already spend at least two per cent of GDP on defence, adding, “The French armed forces stand out for their operational nature and their ability to design and conduct large-scale operations abroad.”
How did Poland become biggest defence spender?
Interestingly, Poland is the biggest defence spender in Nato — pegged at 4.12 per cent of its GDP. But the European nation has already pledged to increase this spending to 4.7 per cent this year.
According to Polish President Andrzej Duda, the national defence budget is expected to reach €30 billion, which would make it the largest defence budget among Nato countries.
The country’s finance minister also stated that defence spending is a priority for Poland. The Minister of Finance Andrzej Domanski said defence spending “was, is and will be our priority” and urged EU countries to back a Polish proposal that would let them hike military spending without breaking the bloc’s fiscal rules.
Poland has doubled down on its military — today, it has the third biggest armed force within Nato. Also, Warsaw has bought “hundreds” of tanks, howitzers and rocket systems, noted The Economist. ‘Pride of place’ was an estimated $60 billion worth of equipment bought from the US, including 96 helicopters and the revolutionary Integrated Battle Command System, which allows different types of radars, missile launchers and defence systems to work together.
Polish Prime Minister Donald Tusk also proposed building an “East Shield” to protect its eastern border. Scheduled to be completed and operational by 2028, it features anti-tank fortifications and physical barriers to defend the frontier and control movement. In addition, the country last year joined the European Sky Shield Initiative, a plan to create advanced air defence systems across the continent to deliver a united response against aggression. Tusk likened the project to Israel’s Iron Dome and said events in West Asia had shown how “essential” such systems were, said The Telegraph.
Which countries miss the mark completely?
However, there are some countries that miss Nato’s spending mark altogether and may now feel pressured to do so.
One such country is Italy, which spends 1.49 per cent of its GDP in 2024. Rome, as the Atlantic Council notes, has been a penny-pincher when it comes to defence. Over the past decade, Italy’s defence budget has consistently ranked among the lowest of Europe’s major powers. Since 2014, Italian spending has not surpassed the 1.5 per cent of GDP mark. Over the same period, its position in Nato’s defence spending rankings has steadily declined — from seventeenth in 2014 to twenty-sixth in 2024.
But to offset this, Italy has consistently opted to increase its troop contributions to Nato and US-led missions. Records show that between 2014 and 2017, Italy increased its deployment of troops abroad from 4,440 to 7,500 personnel.
In 2024, Italy has deployed 11,097 troops to Nato and US-led missions.
Spain is another European nation that remains a laggard in defence spending. According to Nato data, the EU’s fourth-biggest country by population and economic size will spend less on defence as a proportion of GDP than any other country in the 32-member alliance.
At present, the Pedro Sanchez-led country’s defence spending stands at 1.28 per cent, with the prime minister saying it would reach the two per cent target by 2029.
Spain’s hesitancy to spend more on defence stems from its pacifist leanings, noted Carlos Miranda, a former diplomat who served as Spain’s ambassador to Nato. “Everything that is military, everything related to war, is unpopular,” he told the Financial Times. “If the government says it’s going to buy another tank, the response is: you could have built a school with the money.”
With inputs from agencies
Roshneesh is on the Explainers team and loves her job. Apart from the everyday 'explaining', she enjoys tennis and is a Rafa fan for life. She is also a Potterhead.