The 23 EU nations that are also NATO members are expected to agree on increasing the defense spending target beyond the current 2% of national output at the alliance’s June summit, where a new level will be set, European Council President Antonio Costa said.
U.S. President Donald Trump has been urging NATO allies to raise defense spending to 5% of gross domestic product (GDP)—a goal that none of the 32 NATO members, including the United States, currently meets. Costa has scheduled an informal meeting of European Union leaders next Monday to discuss defense and security investment, he said in an interview with Portuguese public broadcaster RTP late on Wednesday.
NATO Secretary-General Mark Rutte and British Prime Minister Keir Starmer will also attend the meeting, he added.
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According to Costa, the collective defense spending of the 23 EU nations within NATO already meets the 2% target, following a 30% increase since Russia’s invasion of Ukraine in February 2022. "There is a very reasonable consensus among member states to continue on this path," he added.
"I would anticipate that, surely, at the next NATO summit in June, a target higher than 2% will be set," Costa said. "Whether it's 5%, whether it's 3%, I don't know, it's a decision that member states will make within NATO."
The European Council, led by Costa, represents the national governments of the EU’s 27 member states. Analysts and officials have told Reuters that spending 5% of GDP on defense would be politically and economically unfeasible for most NATO members, as it would require billions of dollars in additional funding. However, they believe allies are likely to agree to exceed the current 2% target at the June summit.
Costa, a former Portuguese prime minister, identified Russia as NATO’s primary threat and emphasized the need for countries to focus on strengthening air defense, anti-missile, and electronic warfare systems. He noted that investing in defense technology and industry would also enhance the EU economy’s competitiveness and suggested that, eventually, there would need to be a discussion on "common funding" for collective defense.
France and the Baltic states are advocating for joint European Union borrowing to finance defense spending. The outcome of that debate may hinge on next month’s national election in Germany, which has so far opposed the idea.