Australia's Defence Dilemma: Balancing Budget and Capability

Australia's Prime Minister Anthony Albanese has declared a strategic assessment of the country's defence capabilities before deciding defence spending increases. Despite U.S. pressure to raise the budget to 3.5% of GDP, Albanese aims to maintain decision-making sovereignty. Discussions continue amid regional security threats and partnerships like the AUKUS program.

Australia's Prime Minister Anthony Albanese emphasized a strategic approach to defence preparedness, stating that understanding the nation's defence capability needs should precede any decision on budget allocation. This follows pressure from U.S. Defence Secretary Pete Hegseth, who suggested Australia increase its defence spending to 3.5% of GDP.

Albanese reassured the public of the government's commitment, citing an accelerated A$10 billion defence spending plan over four years, with a target of 2.3% GDP by 2033. Recent talks with U.S. officials highlighted the urgency of bolstering defence capabilities and industrial cooperation amid evolving regional threats.

Positioning before a likely meeting with President Trump, Albanese stresses that any defence budget increase should reflect domestic priorities rather than external pressure. Past spending levels were higher, with modern threats necessitating increased investment. Australia remains committed to significant defence initiatives, including the AUKUS deal and expanding missile capabilities.

(With inputs from agencies.)