NATO's 5% GDP Defense Spending Dilemma: Challenges and Exemptions

NATO leaders are set to approve a new defense spending target this week, requiring member countries to allocate 5% of their Gross Domestic Product (GDP) to defense. However, not all countries will be subject to this requirement, with notable exceptions including Spain and the United States.

Prime Minister Pedro Sanchez announced Spain's exclusion from this target, focusing instead on meeting NATO's capability demands with a 2.1% GDP expenditure. This decision raises questions about how other members struggling with similar economic challenges will respond to the pressure to increase their defense budgets.

The proposed 5% spending includes both heightened defense budgets and infrastructure improvements to bolster military effectiveness. With Russia's actions posing a significant threat, NATO aims for collective resilience despite varying national commitments. As the alliance grapples with these proposals, internal debates continue over timelines and financial feasibility.

(With inputs from agencies.)