NATO's Defense Budget Dilemma: Innovation to Cut Costs

NATO's chief, Mark Rutte, suggests that member nations may need to increase their defense spending to 3.7% of GDP, up from the current 2% target. However, costs could be mitigated through innovation and joint procurement. This announcement comes amid discussions of President-elect Trump’s unrealistic 5% GDP defense spending proposal.

NATO chief Mark Rutte has highlighted a potential rise in the alliance's military spending targets, suggesting that members may need to allocate up to 3.7% of their GDP for defense. This increase is part of NATO's ongoing internal planning.

During a European Parliament committee session, Rutte emphasized that the current 2% spending target is insufficient. He pointed out that new military capability targets require expenditures to exceed 3% of GDP. However, innovative strategies and joint procurement efforts could help reduce these funding needs.

The announcement comes in light of U.S. President-elect Donald Trump's controversial suggestion for NATO members to spend 5% of GDP on defense—an amount deemed impractical by most analysts. Rutte expressed optimism that collaborative spending measures could alleviate some financial burdens, lowering the proposed percentage while still increasing NATO's defense capabilities.

(With inputs from agencies.)