Rutte: NATO Must Innovate to Avoid 3.7% GDP Defense Spending

Joint procurement and innovation could ease the financial burden.

Brussels: NATO chief Mark Rutte has warned that the alliance’s military capability targets could compel members to allocate up to 3.7% of their GDP to defense spending. However, he emphasized that this figure might be reduced through innovation and collaborative procurement efforts.

Addressing a European Parliament committee session in Brussels, Rutte stated, “The 2% is not enough.” NATO estimates for 2024 indicate that 23 out of its 32 members are expected to meet the current benchmark of spending 2% of their GDP on defense.

Rutte explained that internal planning within NATO suggests that achieving the necessary military capability may require defense budgets to exceed 3% of GDP. He added that joint procurement of weapons and equipment, along with innovative approaches, could help alleviate this financial burden.

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“If you deduct that, you don’t have to get to what we are afraid of you would need now, which is 3.6, 3.7 (percent), so you would bring that number somewhat down, but it will be impressively more than the 2%,” Rutte remarked.

The remarks come in the wake of U.S. President-elect Donald Trump’s suggestion last week that NATO members should commit 5% of GDP to defense. Analysts have largely dismissed this proposal as politically and economically unfeasible for most member states.

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