'Near consensus': Hegseth says Nato close to deal on 5% defence spending

US Defence Secretary Pete Hegseth on Thursday said Nato allies are nearing consensus on a new defence spending target of 5% of GDP, a longstanding demand from President Donald Trump to member states.

Trump has for months said he wants Nato allies to boost investment in defence to 5% of gross domestic product, up from the current target of 2%. No country is yet at 5%, not even the US, but Hegseth said there was progress on agreeing to the target.

Speaking after a meeting with Nato defence ministers in Brussels, Hegseth said, “I think it is, it is worth taking a moment to note the historic nature of what just occurred in there, which is not an end state, there’s still more to go. But considering 2% was the goal that President Trump set out in his first term, President Trump said other countries need to carry the burden, pay the fair share, and a lot of people thought that was impossible, it couldn’t happen, and here we are: countries in there are well exceeding 2% and we think very close, almost near consensus, on a 5% commitment for Nato.”

He, however, said there are a few countries that are not quite there yet but expressed the desire to get them there.

“I won’t name any names. It’s amongst friends in that room. We’ll get them there. But from France to Germany to the Baltics to the Nordic countries to Poland to Greece to Hungary, to so many more, the commitment is there 5% on defence spending. When you consider the threats that we face, the urgency in the world, it’s critical,” he added.

‘Capability targets’

Nato Secretary-General Mark Rutte confirmed ministers agreed on “capability targets” to strengthen military readiness.

These targets involve priority acquisitions like long-range missiles, drones, and air defence systems, as well as logistics tools to enhance rapid deployment.

“All these investments have to be financed,” AP quoted Rutte as saying.

Earlier in the days as he arrived for the Nato meeting, Hegseth said that all Nato members must commit to spending 5% of their GDP on defence by the upcoming summit of Nato leaders scheduled for June 24–25.

According to diplomats, European allies recognise that increasing defence spending is essential to securing continued US support for the continent’s security. They believe enabling President Trump to claim a victory on his 5% demand is key to maintaining American engagement, especially during the Hague summit, reported Reuters.

“That will be a considerable extra investment,” Rutte told reporters.

He expressed confidence that at the Hague summit, “we will decide on a much higher spending target for all the nations in Nato.”

In an effort to reach Trump’s 5% target, Rutte has proposed that alliance members increase direct defence spending to 3.5% of GDP and allocate an additional 1.5% to broader security-related initiatives, Reuters reported.

Hegseth expressed support for that plan on Thursday.

“You got to spend to have hard power,” Reuters quoted Hegseth as saying.

“This alliance, we believe, in a matter of weeks, will be committing to 5%: 3.5% in hard military and 1.5% in infrastructure and defence-related activities, that combination constitutes a real commitment.”

Spain not on board

However, not all member states are aligned. Spain, for instance, has expressed hesitation about adopting the 5% target.

“We think that this 2% is enough to meet the responsibilities we have committed to,” Reuters quoted Spanish Defence Minister Margarita Robles as saying on Thursday.

“What is important is that each country is able to meet the objectives it has set itself,” Robles added.

Nato’s investment plan

Negotiations over Nato’s new investment plan are expected to continue up to the summit’s eve.

Meanwhile, Rutte said allies are set to agree Thursday on “historic” new capability targets —defining troop numbers, weapons, and ammunition contributions — to better balance defence efforts across Europe, Canada, and the US.

Germany will need 50,000–60,000 additional active troops under the proposed targets, according to German Defense Minister Boris Pistorius.

Disagreements remain over the timeline for meeting the 5% spending goal.

Rutte has suggested 2032, a deadline some Eastern European countries say is too slow, while others see it as too ambitious.

Estonia wants the target reached within five years. “We don’t have time for 10 years, we don’t have time even for seven years,” said Estonian Defense Minister Hanno Pevkur.

Sweden is pushing for 2030.

Debate also continues over what counts as “defense-related” spending, with possible inclusion of cybersecurity and certain infrastructure projects.

With inputs from agencies