Five NATO member states are projected to exceed the alliance's new 3.5% of GDP defense spending target in 2026, as military budgets surge across Europe. Lithuania leads the alliance at an estimated 5.33% of GDP, followed by Estonia, Latvia, Poland, and Greece — all five surpassing the 5% mark.
The 3.5% benchmark, agreed at NATO's 2025 Hague summit with a 2035 deadline, arrives as European allies and Canada are set to spend $777 billion on defense this year, an 11% increase from 2025. NATO Secretary General Mark Rutte has urged allies to channel funds into Patriot systems, drone technology, and ammunition. Separately, Britain and the Netherlands signed a £2.4 billion naval agreement at the Ankara summit on Tuesday to jointly build amphibious transport ships.
Not all members are keeping pace. Slovenia is expected to fall below 2% of GDP this year, while Germany's spending is projected to rise 25.5% to 2.69%. The Czech Republic, which fell short in 2025 at 1.86%, is estimated to meet the older 2% threshold in 2026 at 2.01%.