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NATO Allies Plans to Include Defence Assistance for Ukraine in New 5% GDP Target

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Photo: NATO Allies Plans to Include Defence Assistance for Ukraine in New 5% GDP Target. Source: nato-int
Photo: NATO Allies Plans to Include Defence Assistance for Ukraine in New 5% GDP Target. Source: nato-int

NATO member countries are poised to include military assistance to Ukraine in their official defence spending calculations as part of the Alliance's proposal to increase defence budgets to 5% of GDP. 

The Gaze reports on this with reference to Euractiv.

Sources familiar with ongoing discussions revealed that NATO members are planning to classify new purchases of military equipment for Ukraine, as well as investments in its domestic defence industry, as “defence-related” expenditures. 

This move aims to boost the overall defence spending commitments of NATO countries, which are set to rise from the current 2% of GDP to 5% under the new proposal.

The decision is expected to be formally discussed at the NATO summit in The Hague on June 24-25, although final details on the spending targets may be refined in the weeks ahead. 

Under the current proposal, each NATO member would allocate at least 5% of their GDP annually to defence, with 3.5% dedicated to core defence areas, such as military hardware and soldier salaries, and the remaining 1.5% focused on broader defence-related costs, which could include cybersecurity, infrastructure, and support for Ukraine.

Importantly, only new funds directed towards military aid for Ukraine would be counted towards the 1.5% category, ensuring that donations from NATO’s existing military stockpiles do not lead to double-counting. Equipment already provided to Ukraine is considered part of NATO’s regular defence spending.

In the past few years, NATO countries have collectively spent billions to support Ukraine's defence efforts, with total military aid reaching €50 billion in 2023 alone. 

By counting these contributions, the Alliance seeks to reinforce the connection between Ukraine’s security and its own strategic interests, further solidifying its commitment to collective defence.

As The Gaze reported earlier, NATO is asking European member countries to significantly increase the number of ground-based air defence forces in order to prepare for potential Russian aggression.

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