Defense spending in NATO countries is set to increase to 5% of GDP by 2035. This will be largely enabled by the European Union, which has created frameworks allowing member states to meet NATO defense goals not only through funding and investments but also via budgetary flexibility. “This is full synergy — one could say that the European Union co-finances NATO capability goals together with its member states,” says Paweł Zalewski, Secretary of State at the Ministry of National Defense.
At the NATO summit in The Hague, member states agreed to raise defense expenditures to 5% of GDP by 2035. Of this, 3.5% of GDP will be allocated strictly to defense, while 1.5% will fund other defense-related objectives. These include investments in dual-use infrastructure important for military needs, critical infrastructure, cybersecurity, and expansion of the defense industry.
“These are commitments made by all member states. They will present annual spending plans so we will know how much each country spends yearly. By 2029, there will be a review of expenditures to assess the progress in meeting these obligations,” Paweł Zalewski told Newseria.
Allies are required to submit credible plans outlining how they will reach the 5% target, detailing annual spending increases. As the Centre for Eastern Studies recalls, this is to avoid a repeat of the 2014–2024 period when rapid defense spending increases only occurred in the last two years, with many countries hitting the target “at the last minute” in 2024.
The increase in defense spending aims to enable NATO allies to achieve ambitious military capability targets under NATO’s Defence Planning Process (NDPP).
“Importantly, it was the European Union that earlier created mechanisms enabling European NATO states to meet these commitments. We established a mechanism to ease the EU’s budgetary prudence rules regarding defense spending. We created the excellent SAFE financing instrument for defense procurement — €150 billion for the coming years. So there is full synergy between the EU and NATO. One can say that the EU has laid the groundwork for European NATO countries to fulfill their commitments,” emphasizes the Deputy Minister of National Defense.
The recently adopted SAFE loan instrument by member states provides €150 billion in support to expand pan-European capabilities, including air defense and ammunition. Loans will only be granted for joint orders involving at least two countries. Ukraine and countries of the European Economic Area may also join joint orders. The European Commission also proposed a fiscal escape clause allowing states to increase defense spending without triggering excessive deficit procedures.
“Today, it is clear that the era of thinking that the EU could ever replace NATO in Europe has ended. The EU fulfills its role by supporting NATO defense objectives with its resources. There is full synergy; one could say the EU co-finances NATO capability goals with member states,” says Paweł Zalewski.
One key topic at the NATO summit in The Hague was cooperation between the alliance and Ukraine. This issue, along with discussions on the 18th sanctions package against Russia, exposed differing positions of Slovakia and Hungary. However, both countries supported NATO’s declaration to increase defense spending.
“Primarily Hungary, but also Slovakia, block EU funds from supporting Ukraine, which is a very serious problem leading to declining trust in these countries. I believe they realize there is a defined red line beyond which cooperation with Slovakia and Hungary will simply be impossible. I don’t say this as a threat; it is political logic. That is why Slovakia and Hungary pushed hard for the US-driven 5% plan to be adopted, knowing they can’t afford to oppose it too much,” said the Deputy Minister. “We continue persuading Hungary and Slovakia not to block key policy instruments for Ukraine, but these countries must understand that such instruments may soon be implemented without them.”
Up to 1.5% of GDP spent under NATO can include dual-use expenditures, for which the EU provides financing mainly through the European Defence Fund (EDF). These are facilities with civilian and military applications—such as infrastructure usable by the military in conflict, technologies supporting resilience in energy, communications, and transport, as well as cybersecurity solutions aligned with EU cyber defense policy.
“Cooperation in cyber defense, building capabilities to counter electronic warfare disruptions, is an economic and technical cooperation goal within the EU framework. Resources produced by the EU will be leveraged by NATO for operational activities. This is full cooperation, including financing technical research to help in electronic warfare against Russia,” recalls Paweł Zalewski.
This year Poland will reach 4.7% of GDP on defense spending (about PLN 190 billion), the highest percentage among NATO members. Next year, it is expected to exceed 5%. Investments focus primarily on expanding domestic production, modernizing land and air forces, territorial defense, increasing soldier numbers and training systems, and premium equipment purchases.
“This also includes the massive infrastructure that must accompany this: hangars for newly purchased aircraft, pipelines to supply fuel for planes, logistics connections, roads to enable the transit of allied soldiers from Germany or across the Baltic Sea to designated lines on the eastern flank as part of NATO operations,” lists the Secretary of State at the Ministry of National Defense.
