THE HAGUE, Netherlands: NATO is pressing ahead with a sweeping new defense spending target, calling on all 32 member nations to commit five percent of their GDP toward security.

Alliance leaders are expected to formally endorse the target at a summit this week in the Netherlands. The target aims to strengthen Europe and North America's ability to deter and respond to external threats, particularly from Russia.

NATO Secretary-General Mark Rutte emphasized that no member can opt out or cut special deals. "NATO has no opt-out, and NATO does no side deals," he said. "It is critical that each ally carries their fair share of the burden." However, that principle is already being tested.

Spain announced it had reached an agreement to be exempt from the five percent benchmark. Prime Minister Pedro Sánchez stated that the final summit declaration would no longer mention "all allies," signaling softer language for countries unable to meet the target. President Donald Trump also declared that the five percent goal should not apply to the United States, which he claims already shoulders much of the alliance's cost.

Under the new framework, 3.5 percent of GDP would be allocated to core defense spending—far above NATO's previous two percent benchmark, which many members still haven't reached. An additional 1.5 percent would cover infrastructure upgrades, cyber defense, and national resilience efforts. While the second category is more flexible, the primary 3.5 percent demand is proving steep for some.

Spain, which spent just 1.28 percent of GDP on defense last year—the lowest in the alliance—has pledged to raise this to 2.1 percent. Spanish leaders argue that this level allows them to meet NATO's "capability targets." Still, the country remains among the smallest European contributors to Ukraine's defense, with less than 1 million euros in aid sent since 2022.

Economic and political headwinds also complicate Spain's position. Sánchez's government is fragile, dependent on small parties, and has been rocked by corruption allegations. Calls for early elections are growing louder.

Nevertheless, many NATO states support the new goal, especially those near Russia or Ukraine. The Netherlands estimates it will need to increase spending by up to 19 billion euros to meet its obligations. Italy has asked for a 10-year timeline to comply.

While 2035 is emerging as a likely deadline, an official review of progress will take place in 2029, shortly after the next U.S. elections. Rutte warned, "Spain will have to spend 3.5 percent. There will be reporting and a review—we will see."