Get 40% Off
🚨 Volatile Markets? Find Hidden Gems for Serious OutperformanceFind Stocks Now

NATO chief urges members to boost defence spending as only 7 hit target

Published 03/21/2023, 09:59 AM
Updated 03/21/2023, 01:37 PM
© Reuters. NATO Secretary-General Jens Stoltenberg holds a news conference to present NATO's annual report for 2022, in Brussels, Belgium March 21, 2023. REUTERS/Johanna Geron

By Andrew Gray and Sabine Siebold

BRUSSELS (Reuters) -NATO chief Jens Stoltenberg urged member countries to speed up increases in defence spending as new figures showed fewer than a quarter of them meeting the alliance's target.

Stoltenberg said Russia's invasion of Ukraine last year showed the world had become more dangerous, and NATO allies had to respond by setting and meeting more ambitious military spending goals.

Seven of the alliance's 30 countries met the current goal of spending 2% of GDP on defence in 2022 - one fewer than in 2021, before Russia's invasion of Ukraine - according to estimates in the NATO secretary-general's annual report, released on Tuesday.

Stoltenberg said NATO had expected two more members to hit the target but their economies had grown by more than anticipated so their spending came in lower as a share of GDP.

NATO members have been steadily increasing their defence spending overall since Russian forces annexed Crimea and entered Donbas in eastern Ukraine in 2014. But Stoltenberg said last year's full-scale invasion showed a need to spend more.

"There's no doubt that we need to do more and we need to do it faster," he told reporters at NATO headquarters in Brussels.

"The pace now, when it comes to increases in defence spending, is not a high enough," he said. "My message to allies is that we welcome what they've done but they need to speed up, they need to deliver more in a more dangerous world."

At a summit in Wales in 2014, NATO leaders agreed to the goal of moving towards spending at least 2% of their GDP on defence within a decade.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Stoltenberg's 2022 report showed Greece, the United States, Lithuania, Poland, Britain, Estonia and Latvia met that target. Overall defence spending by NATO allies was up 2.2% on the previous year.

NATO leaders are expected to agree a new target at a summit in Vilnius, Lithuania, in July and Stoltenberg said 2% of GDP should now be seen as a minimum, with members aiming to move more quickly than they have done to get to higher levels.

"I will advocate for a more ambitious pledge than the one we made in 2014," he said. "If there was a need to increase defence spending back in 2014, this is even more obvious now."

The figures in Stoltenberg's report showed Croatia and France were the closest to meeting the 2% target, with each spending about 1.9% of GDP on defence.

Bringing up the rear were Belgium, Spain and Luxembourg, whose defence spending was under 1.2% of GDP.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.