EU-NATO Defence Budget Surge: Balancing Security and Economy

European countries may agree to increase their NATO defence spending targets above the current 2% of GDP at a coming summit. Pressure is mounting, especially from the U.S., to reach even higher levels like 5%, challenging for most members. The debate also involves potential EU-wide funding initiatives for security.

Amid rising global tensions, Europe is on the verge of a significant shift in defence spending, as EU members aligned with NATO consider exceeding their current budget commitments. Currently set at 2% of GDP, this target may increase as early as the upcoming June NATO summit, according to European Council President Antonio Costa.

The discussion, fueled by pressure from the United States to boost spending to 5% of GDP, involves complex political and economic considerations, as no NATO member currently meets such a demand. Costa is set to convene EU leaders in an informal meeting next week to deliberate on these issues.

Senior NATO figures, including Secretary-General Mark Rutte and UK Prime Minister Keir Starmer, will join the talks. While raising the budget could enhance security capabilities, it poses financial challenges, igniting a broader debate about joint EU financial mechanics, particularly amid calls for shared funding approaches pending political outcomes in Germany.

(With inputs from agencies.)