NATO allies are advancing to adopt a defense spending goal worth 5% of GDP and could seal the deal at a leaders’ summit in The Hague next month, Secretary-General Mark Rutte said Monday. During a session at the NATO Parliamentary Assembly in the United States, Rutte told lawmakers, “I assume that in The Hague we will agree on a higher defense spending target of in total 5%.” His remark is the strongest push yet for a bigger budget. The shift follows months of pressure from U.S. President Donald Trump, who warned that allies must lift military budgets or risk losing American protection. Many capitals first brushed off the threat, but rising tension with Russia and checks on Europe’s readiness have changed the debate. More leaders now back the new bar, which is well above NATO’s current rule that each member spend at least 2% of gross domestic product on defense. Dutch Prime Minister Dick Schoof wrote to alliance leaders this month, urging 3.5% of GDP on “hard military spending” and another 1.5% on areas such as infrastructure and cyber security within seven years. The letter set a clear path toward the larger figure now on the table. Monday’s statement is the first time the NATO chief has publicly embraced the full 5% figure. Rutte did not give a precise split but said traditional military programs would be “considerably north of 3%,” with the rest for transport, depots, and other support costs. NATO data show that 23 of the alliance’s 32 members are on track to hit the 2% line by this summer, a jump from only three nations when the rule was set in 2014 after Russia’s first move against Ukraine. None is yet at 5%. Poland leads at about 4.7% of GDP, while Lithuania and Latvia plan to reach or top 5% within two years. The figures underline how Russia’s actions have forced governments to reopen defense ledgers and speed up arms orders. Some leaders say it’s tough to deliver on Trump’s demands Greek Prime Minister Kyriakos Mitsotakis told CNBC that hitting 5% “is difficult” for most members. “If we’re talking about hard defense spending , I think 3.5% is probably the ceiling,” he said in an interview aired Friday. Mitsotakis added that 5% might be possible in the long run if wider costs, such as critical infrastructure, were counted. “It really depends on how we do the accounting,” he noted. Poland has pledged to lift its military budget to as much as 5%. Other governments are more cautious, warning the sums could strain public finances. German Foreign Minister Johann Wadephul also signaled support. The outcome of Rutte’s push, he said, was “indeed the 5% demanded by President Trump … and we are following him in this respect.” Mitsotakis agreed that Trump had a point. “Donald Trump was right when in 2017 he said you’re not doing your fair share, because we didn’t,” the Greek leader said. “We understand now that there is no free lunch and we cannot free ride.” Greece already spends about 3.1% of GDP on defense, NATO estimates show. Athens has been above 2% for many years and began climbing higher in 2020 as tensions with Turkey flared over maritime borders and other disputes. “We spend more than 3% for specific reasons, and we were also advocating very much for a change in European rules to encourage us to be able to spend more,” Mitsotakis said, noting some progress on easing those limits. Cryptopolitan Academy: Tired of market swings? Learn how DeFi can help you build steady passive income. Register Now