NATO's New Financial Strategy: Meeting Trump's Demands

NATO chief Mark Rutte proposed to increase defense spending among alliance members to meet U.S. President Trump's 5% GDP target demand. The proposal suggests 3.5% GDP for core defense and an additional 1.5% for other related items, potentially allowing a diplomatic win at an upcoming summit.

NATO's chief, Mark Rutte, has put forward a proposal suggesting an increase in defense spending among alliance members, aiming to satisfy the 5% GDP target demanded by U.S. President Donald Trump.

The proposed strategy involves committing 3.5% of GDP to core defense expenditures and allocating an additional 1.5% to other defense-related areas. This approach seeks to strike a balance between President Trump's demands and the economic constraints faced by European countries and Canada.

If approved, this proposal could lead to a diplomatic success at the NATO summit in The Hague this June, allowing President Trump to declare a win, while avoiding economically and politically challenging commitments from the alliance's European and Canadian members.

(With inputs from agencies.)