“The purpose of the NATO summit was to lay the groundwork for what comes next,” explained Camille Grand, former Deputy Secretary General of the organization.
Ensuring the 5% Becomes Reality
Options to increase defense spending include raising taxes, reducing public spending (including social expenditures), and borrowing. The European Commission is assisting with its new €150 billion loan program for purchasing weapons, called SAFE, and its smaller €1.5 billion defense industry program. The upcoming long-term EU budget is expected to allocate more funds to defense, but it will only begin in 2027.
“The only European countries whose public finances allow them to aim for this [5%] target are Germany, Poland, and the Baltic and Nordic countries,” lists François Heisbourg, senior adviser for Europe at the International Institute for Strategic Studies. “Everyone knows that France, Belgium, the United Kingdom, Spain, and Italy are absolutely unable to make such a commitment.”
Additionally, the farther from Russia, the harder the acceptance, as shown by Spain’s last-minute opposition to the new NATO target.
Another warning of potential political discontent over increased spending came just a few kilometers from the NATO summit. It was there that former Italian Prime Minister and anti-establishment leader, Giuseppe Conte, led a gathering of about 70 left-wing political leaders from across Europe who signed a declaration lamenting the continent’s rearmament.
“Reaching 5% defense spending will inevitably require deep cuts in social protection, healthcare, education, social services, and business investments,” Giuseppe Conte told POLITICO.
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