Europe's NATO Budget Challenge: Guns or Butter?

European members of NATO have pledged to significantly increase their military spending in a bid to maintain the support of former U.S. President Donald Trump. This commitment involves more than doubling the funds allocated to defense, despite the financial strain it imposes on many nations' national budgets.

The 5% GDP target on defense spending is ambitious, particularly for countries wrestling with high debt levels. Critics argue that achieving this goal requires tough financial decisions, including possible spending cuts or tax hikes, spurring internal political debates.

While countries closer to Russia, like Poland and Finland, show less resistance to increased defense budgets, others, including Spain, express concerns about the potential impact on their welfare state. As these nations confront challenging fiscal realities, the European defense landscape may experience gradual—yet contentious—transformation.

(With inputs from agencies.)