The European Union (EU) is on the cusp of a significant transformation in its defense strategy, driven by a pressing need to bolster its military capabilities in the face of rising global threats. European Commission President Ursula von der Leyen has emphasized the necessity for a substantial investment in defense, amounting to 500 billion euros ($535 billion) over the next decade. This unprecedented financial commitment underscores the EU’s determination to enhance its defense infrastructure, which has lagged behind other global powers like China and Russia.

The Strategic Context

The geopolitical landscape has shifted dramatically in recent years, marked by increasing tensions and conflicts, most notably the ongoing war in Ukraine. The invasion of Ukraine by Russia has served as a stark reminder of the volatility in Europe’s eastern borders and has accelerated the urgency for a robust defense strategy within the EU. The European Council has responded by calling for a ramp-up in military support to Ukraine, including critical supplies of air defense systems, ammunition, and missiles.

Von der Leyen’s call to action is rooted in the recognition that Europe must not rely solely on external allies for its security. Historically, European nations have depended heavily on the United States for military support and equipment. However, the EU now aims to develop a more self-sufficient defense capability, reducing its dependence on non-EU suppliers and fostering greater intra-European defense cooperation.

Financial Framework and Implementation

The proposed 500 billion euros investment will be sourced from a combination of national contributions from EU member states and the bloc’s own funds. This financial infusion is intended to support a variety of defense initiatives, including the development and procurement of advanced military technologies, enhancement of cyber defense capabilities, and strengthening of integrated European air and missile defense systems.

To ensure efficient allocation of these funds, the EU plans to implement several strategic measures:

• Joint Defense Procurement: Encouraging member states to engage in collaborative defense projects to fill capability gaps and ensure a unified defense posture.
• European Military Sales Mechanism: Inspired by the U.S. foreign military sales model, this mechanism aims to streamline defense contracts and ensure timely delivery of critical defense equipment.
• Stockpiling and Supply Chain Management: Establishing reserves of essential defense components and materials, and mapping out key suppliers within the EU to prevent shortages during crises.
• Research and Development: Continued funding for defense innovation through the European Defence Fund, with a focus on commercializing successful prototypes and maintaining operational superiority.

The European Investment Bank (EIB) has also expressed readiness to support these defense projects, particularly those involving small and medium enterprises (SMEs), which are pivotal for innovation in the defense sector.

Political and Industrial Challenges

Despite the clear strategic need, the implementation of this ambitious defense investment plan is fraught with political and industrial challenges. The EU member states have historically shown reluctance to cede control over national defense policies to a central authority. The new strategy, which proposes significant EU involvement in defense industrial policy, has sparked debates about the extent of the EU’s role and the potential for overreach.

Moreover, the strategy’s emphasis on prioritizing EU-based defense firms has raised concerns about protectionism and its impact on existing international defense partnerships. The exclusion of non-EU suppliers, except for strategic partners like Ukraine, has been a contentious issue, potentially hindering the swift implementation of the proposed measures.

Long-term Strategic Goals

The long-term success of the EU’s defense strategy hinges on several key factors:

• Sustained Funding: Ensuring consistent financial support to maintain and enhance defense capabilities over the next decade.
• Political Cohesion: Achieving consensus among EU member states on the strategic priorities and governance of defense policies.
• Technological Innovation: Investing in cutting-edge technologies, such as artificial intelligence and quantum computing, which have dual-use potential and are critical for future defense capabilities.
• Collaboration with Academia: Engaging universities and research institutions in defense-related projects to foster innovation and ensure the civilian sector’s involvement in defense advancements.

The EU’s 500 billion euros defense investment plan is a bold and necessary step towards strengthening Europe’s defense capabilities in an increasingly uncertain world. By fostering greater collaboration among member states, prioritizing innovation, and ensuring a reliable supply of critical defense equipment, the EU aims to build a more secure and self-reliant Europe. However, the success of this strategy will depend on overcoming political hurdles, securing sustained funding, and maintaining a delicate balance between national sovereignty and collective security interests.

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NATO Cost Share Arrangements for 2024

Based on the latest data, NATO’s civil and military budgets for 2024 have been agreed upon. The civil budget is set at €438.1 million, while the military budget is €2.03 billion. Additionally, the NATO Security Investment Programme (NSIP) ceiling is €1.3 billion for 2024​ .

Image : Defence expenditure as a share of GDP and equipment expenditure as a share of defence expenditure 2024e

TABLE – Defence expenditure as a share of GDP and annual real change – Based on 2015 prices

			2014	2015		2016		2017		2018		2019		2020		2021		2022		2023e		2024e
Share of real GDP (%)
	Albania	1.35			1.16		1.10		1.11		1.16		1.28		1.30		1.24		1.21		1.75		2.03
	Belgium	0.97			0.91		0.89		0.88		0.89		0.89		1.01		1.04		1.18		1.21		1.30
	Bulgaria	1.31			1.25		1.24		1.22		1.45		3.13		1.59		1.52		1.59		1.96		2.18
	Canada	1.01			1.20		1.16		1.44		1.30		1.29		1.41		1.27		1.20		1.31		1.37
	Croatia	1.81			1.75		1.59		1.63		1.54		1.59		1.69		1.95		1.78		1.74		1.81
	Czechia*	0.94			1.02		0.95		1.03		1.10		1.18		1.30		1.39		1.34		1.37		2.10
	Denmark	1.15			1.11		1.15		1.14		1.28		1.30		1.38		1.30		1.37		2.01		2.37
	Estonia*	1.93			2.03		2.07		2.01		2.01		2.04		2.30		2.03		2.16		3.04		3.43
	Finland	1.45			1.45		1.42		1.38		1.39		1.45		1.53		1.40		1.68		2.09		2.41
	France	1.82			1.78		1.79		1.78		1.81		1.81		2.00		1.91		1.88		1.96		2.06
	Germany	1.19			1.19		1.20		1.23		1.25		1.35		1.51		1.45		1.51		1.64		2.12
	Greece	2.22			2.31		2.40		2.38		2.54		2.45		2.91		3.70		3.88		2.80		3.08
	Hungary	0.86			0.90		1.00		1.19		1.01		1.34		1.76		1.32		1.84		2.05		2.11
	Italy	1.14			1.07		1.18		1.20		1.23		1.17		1.59		1.54		1.52		1.50		1.49
	Latvia*	0.94			1.03		1.44		1.59		2.06		2.02		2.16		2.09		2.12		2.87		3.15
	Lithuania*	0.88			1.14		1.48		1.71		1.97		2.00		2.07		1.96		2.45		2.78		2.85
	Luxembourg	0.37			0.41		0.38		0.49		0.50		0.55		0.58		0.47		0.56		1.12		1.29
	Montenegro	1.50			1.40		1.42		1.34		1.37		1.33		1.73		1.55		1.38		1.54		2.02
	Netherlands	1.15			1.13		1.16		1.15		1.22		1.32		1.41		1.36		1.44		1.66		2.05
	North Macedonia	1.09			1.05		0.97		0.89		0.94		1.16		1.24		1.45		1.61		1.81		2.22
	Norway	1.54			1.58		1.73		1.71		1.72		1.84		1.97		1.68		1.46		1.81		2.20
	Poland*	1.88			2.23		2.00		1.89		2.02		1.99		2.23		2.22		2.23		3.26		4.12
	Portugal	1.31			1.33		1.27		1.24		1.34		1.37		1.43		1.52		1.40		1.48		1.55
	Romania*	1.35			1.45		1.43		1.73		1.79		1.84		2.01		1.85		1.74		1.60		2.25
	Slovak Republic	0.98			1.11		1.12		1.10		1.22		1.70		1.92		1.74		1.81		1.84		2.00
	Slovenia	0.97			0.93		1.00		0.98		1.01		1.05		1.06		1.23		1.29		1.34		1.29
	Spain	0.92			0.93		0.81		0.91		0.93		0.91		1.00		1.03		1.16		1.19		1.28
	Sweden	1.06			1.01		0.97		0.97		0.97		1.04		1.09		1.42		1.45		1.66		2.14
	Türkiye	1.45			1.38		1.45		1.51		1.82		1.85		1.86		1.61		1.36		1.50		2.09
	United Kingdom	2.14			2.03		2.09		2.08		2.10		2.08		2.35		2.29		2.29		2.30		2.33
	United States	3.71			3.51		3.50		3.28		3.26		3.47		3.58		3.53		3.31		3.23		3.38
	NATO Europe and Canada	1.43			1.42		1.44		1.48		1.51		1.54		1.72		1.66		1.66		1.78		2.02
	NATO Total	2.58			2.48		2.48		2.39		2.40		2.52		2.69		2.63		2.51		2.53		2.71

Annual real change (%)

Albania	-2.74	-11.76	-1.90	4.32	8.84	12.67	-2.17	4.47	1.96	49.27	19.76
Belgium	-2.25	-4.44	-0.36	0.36	2.69	1.90	7.96	9.64	17.25	3.70	8.89
Bulgaria	-9.08	-1.56	2.80	0.96	21.79	124.94	-51.16	2.49	9.07	25.37	13.29
Canada	4.95	20.09	-2.48	27.76	-7.18	1.61	3.37	-5.08	-2.08	10.33	5.46
Croatia	25.92	-1.03	-5.96	6.15	-2.81	7.19	-3.02	30.82	-2.40	0.73	7.11
Czechia*	-4.91	14.14	-4.61	14.32	10.33	10.14	4.11	10.60	-1.25	2.01	54.65
Denmark	-4.84	-1.03	6.62	1.98	14.47	2.88	3.76	0.87	8.07	50.04	20.66
Estonia*	3.74	7.42	5.24	2.68	3.73	5.34	12.05	-5.01	5.75	36.12	12.56
Finland	-6.03	0.42	0.68	0.55	1.39	5.98	2.87	-6.07	21.50	23.28	15.24
France	-1.21	-1.00	1.38	1.73	3.61	2.11	1.22	2.20	0.93	5.02	6.05
Germany	-1.39	1.42	3.36	5.50	2.57	9.09	7.48	-0.96	5.56	8.84	29.45
Greece	0.44	3.72	3.47	0.15	8.55	-1.94	8.25	37.70	10.92	-26.32	11.85
Hungary	-5.22	9.38	13.19	24.20	-11.19	39.17	25.85	-19.46	45.32	10.57	4.99
Italy	-9.81	-5.83	12.05	3.75	2.77	-3.94	23.33	4.91	3.07	-0.56	0.12
Latvia*	2.39	14.66	42.29	14.61	34.54	-1.25	3.09	3.10	4.48	35.29	11.56
Lithuania*	19.38	31.96	33.13	20.84	19.38	6.24	3.51	0.67	28.03	13.35	4.25
Luxembourg	4.92	15.30	-3.82	32.04	2.59	12.37	4.72	-12.62	21.06	31.17	17.86
Montenegro	4.49	-3.50	4.33	-1.34	7.29	1.36	10.02	1.48	-5.98	18.81	34.97
Netherlands	0.19	0.26	4.43	2.17	8.41	10.90	2.18	2.59	10.33	15.74	24.25
North Macedonia	-3.58	-0.09	-4.71	-6.75	8.40	27.73	2.01	22.46	12.94	13.74	26.16
Norway	5.38	4.72	10.84	0.78	1.43	8.70	5.27	-11.40	-10.02	24.40	22.24
Poland*	11.38	23.75	-7.30	-0.34	12.62	2.87	10.05	6.13	6.33	46.61	30.07
Portugal	-8.52	3.25	-2.51	1.03	11.40	5.32	-4.60	12.76	-1.85	7.79	6.52
Romania*	8.61	11.05	1.23	31.38	9.57	6.40	5.42	-2.52	-2.49	-5.98	45.63
Slovak Republic	3.25	18.61	2.51	1.80	15.18	42.97	8.97	-5.03	5.69	3.47	10.36
Slovenia	-4.42	-2.37	11.42	2.45	7.31	8.03	-3.67	26.10	7.38	5.21	-1.41
Spain	0.36	4.60	-10.15	15.30	4.81	-0.47	-1.49	8.73	19.47	5.54	9.32
Sweden	4.28	-1.04	-1.76	1.95	2.49	9.35	2.73	37.53	5.04	14.23	29.87
Türkiye	0.78	1.44	8.64	11.61	23.87	2.85	2.28	-3.83	-10.79	15.45	44.09
United Kingdom	-1.11	-3.05	4.75	2.11	2.52	0.76	1.27	5.76	4.18	0.87	1.73
United States	-5.19	-2.84	1.56	-3.81	2.18	9.21	0.77	4.31	-4.27	0.08	7.21
NATO Europe and Canada	–0.88	1.63	2.97	5.89	4.25	3.62	4.71	2.54	3.73	9.26	17.95
NATO Total	–4.04	–1.61	1.96	–1.03	2.82	7.47	1.95	3.76	–1.83	3.03	10.88

The table below provides the cost share percentages for each NATO member, alongside their contributions in euros across the three principal common-funded budgets.

Nation	Cost Share (%)	Total Contribution (EUR)	Civil Budget (EUR)	Military Budget (EUR)	NSIP (EUR)
Albania	0.0882	€3,003,360	€386,403	€1,789,860	€827,097
Belgium	2.0447	€69,600,510	€8,960,421	€41,494,310	€19,145,779
Bulgaria	0.3552	€12,104,160	€1,557,334	€7,217,760	€3,329,066
Canada	6.6840	€227,672,200	€29,305,210	€135,629,200	€62,737,790
Croatia	0.2910	€9,920,700	€1,276,111	€5,904,300	€2,740,289
Czechia	1.0259	€34,935,300	€4,495,436	€20,800,700	€9,639,164
Denmark	1.2744	€43,389,200	€5,585,766	€25,816,200	€11,987,234
Estonia	0.1213	€4,130,890	€532,193	€2,461,900	€1,136,797
Finland	0.9057	€30,826,400	€3,970,222	€18,369,100	€8,487,078
France	10.1940	€346,402,200	€44,590,809	€206,420,200	€95,391,191
Germany	15.8813	€539,073,000	€69,319,292	€321,484,300	€148,269,408
Greece	1.0273	€34,862,100	€4,485,418	€20,758,700	€9,618,018
Hungary	0.7380	€25,048,200	€3,222,628	€14,916,000	€6,909,572
Iceland	0.0624	€2,116,320	€272,118	€1,259,520	€584,682
Italy	8.5324	€290,003,400	€37,285,506	€172,536,200	€80,181,694
Latvia	0.1550	€5,269,500	€677,094	€3,135,000	€1,457,406
Lithuania	0.2493	€8,474,250	€1,088,301	€5,036,400	€2,349,549
Luxembourg	0.1645	€5,591,850	€718,018	€3,320,600	€1,553,232
Montenegro	0.0283	€962,700	€123,648	€571,100	€267,952
Netherlands	3.3528	€113,989,600	€14,648,144	€67,660,400	€31,681,056
North Macedonia	0.0756	€2,569,800	€330,924	€1,528,800	€710,076
Norway	1.7267	€58,733,100	€7,561,069	€34,892,100	€16,279,931
Poland	2.9015	€98,719,500	€12,704,205	€58,632,500	€27,382,795
Portugal	1.0194	€34,698,600	€4,463,376	€20,598,200	€9,637,024
Romania	1.1931	€40,602,300	€5,220,278	€24,086,300	€11,295,722
Slovakia	0.5014	€17,073,000	€2,195,243	€10,130,600	€4,747,157
Slovenia	0.2212	€7,537,200	€969,876	€4,474,400	€2,092,924
Spain	5.8211	€198,280,200	€25,526,690	€117,688,300	€55,065,210
Sweden	1.9277	€65,656,100	€8,459,951	€39,010,100	€18,186,049
Türkiye	4.5927	€156,397,100	€20,132,894	€92,209,100	€44,055,106
United Kingdom	10.9626	€373,756,800	€48,085,822	€220,308,000	€105,362,978
United States	15.8813	€540,670,900	€69,583,943	€322,596,200	€148,490,757
TOTAL NATO	100.0000	€3,400,000,000	€438,100,000	€2,030,000,000	€1,300,000,000

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The 2024-2028 Common Funding Resource Plan (CFRP) Overview

The 2024-2028 Common Funding Resource Plan (CFRP) is a comprehensive five-year financial strategy designed by the Resource Policy and Planning Board (RPPB) for NATO’s Council consideration. It integrates the Medium Term Resource Plan (for the Military Budget and the NATO Security Investment Programme (NSIP)) and the Medium Term Financial Plan (for the Civil Budget) to provide a unified resource allocation framework for NATO.

The CFRP aims to outline the common-funded resource needs over the next five years, assessing the feasibility and affordability of ongoing and future common-funded programs. It proposes budget ceilings for the upcoming year and offers planning figures for the following years, extending into 2029 and 2030.

In the 2022 Madrid Summit, NATO leaders endorsed a new Strategic Concept to ensure the Alliance remains equipped to handle future challenges. The Summit highlighted the necessity of increased national defense expenditures and common NATO funding to meet the demands of a more contested global environment. This decision built on the 2021 Brussels Summit’s commitment to adjust and expand common funding usage, emphasizing affordability, accountability, and sustainability.

Key Strategic Initiatives:

• Deterrence and Defense of the Euro-Atlantic Area (DDA): This includes new political priorities and military requirements crucial for implementing NATO’s Strategic Concept and NATO 2030 agenda.
• NATO Warfighting Capstone Concept (NWCC): Essential for developing military concepts and plans.
• NSIP and Military Budget Allocations: Necessary for supporting NATO’s deterrence and defense posture.

NATO Security Investment Programme (NSIP):
The NSIP is pivotal in developing and delivering capabilities, particularly in areas like air, land, and naval facilities, bulk fuel systems, core communications, IT networks, and satellite communications. For 2024, a ceiling of EUR 1,324.4 million is recommended, with future projections reaching EUR 5,786.4 million by 2030.

Military Budget:

The Military Budget supports strengthening NATO’s deterrence and defense posture, core military capabilities, Alliance Operations and Missions, and interoperability of forces. For 2024, a ceiling of EUR 2,128.3 million is proposed, with projections increasing to EUR 4,390.6 million by 2030.

Budget Breakdown:

NATO Command Structure Entities and Programs:

• Supports the backbone of NATO’s military structure and enables operations and crisis response.
• 2024 ceiling: EUR 1,217.4 million.
• 2030 projection: EUR 3,201.9 million.

Alliance Operations and Missions:

• Includes missions in Iraq, the Balkans, and support to the African Union.
• 2024 ceiling: EUR 61.0 million.
• 2030 projection: EUR 104.6 million.

NATO Alliance Ground Surveillance Force:

• Provides Joint Intelligence, Surveillance, and Reconnaissance (JISR).
• 2024 ceiling: EUR 264.1 million.
• 2030 projection: EUR 390.5 million.

NATO Airborne Early Warning and Control Force:

• Significant JISR capability contributing to NATO’s deterrence posture.
• 2024 ceiling: EUR 420.2 million.
• 2030 projection: EUR 456.6 million.

Defined Benefits Pension Scheme:

• Covers projected liabilities with retirees.
• 2024 ceiling: EUR 165.6 million.
• 2030 projection: EUR 237.0 million.

Civil Budget:

The Civil Budget facilitates NATO’s decision-making process, policy development, and implementation. It supports interoperability standards, AI capabilities, training, situational awareness, cyber defense, counter-terrorism, hybrid threats, and climate change cooperation. For 2024, a ceiling of EUR 417.7 million is recommended, with projections rising to EUR 739.8 million by 2030.

Inflation Framework:

To address global economic conditions and inflation, a Common Funding Inflation Framework was developed. This framework will inform future planning by evaluating affordability based on projected cost evolution due to inflation.

Transparency and Accountability:

The CFRP includes measures to enhance transparency, accountability, and management performance, as endorsed at the 2023 Vilnius Summit. This ensures efficient resource allocation and integration of long-term efficiencies into the planning process.

The 2024-2028 CFRP outlines a strategic approach to resource allocation, supporting NATO’s core tasks and strategic objectives. By addressing the evolving security environment and incorporating lessons learned from previous cycles, the CFRP ensures NATO remains prepared and well-resourced to meet future challenges. The detailed resource planning and budget ceilings proposed aim to enhance NATO’s deterrence and defense capabilities while maintaining financial sustainability and accountability.

Technical Data Sheet and Capabilities Overview:

Category	2024	2025	2028	2030
NSIP Ceiling (EUR million)	1,324.4	1,710.6	3,565.3	5,786.4
Military Budget Ceiling (EUR million)	2,128.3	–	3,097.6	4,390.6
NATO Command Structure (EUR million)	1,217.4	–	1,969.7	3,201.9
Alliance Operations & Missions (EUR million)	61.0	–	94.1	104.6
NATO Ground Surveillance (EUR million)	264.1	–	371.5	390.5
NATO Airborne Early Warning (EUR million)	420.2	–	451.2	456.6
Pension Scheme (EUR million)	165.6	–	211.1	237.0
Civil Budget Ceiling (EUR million)	417.7	–	600.7	739.8

Capabilities and Focus Areas:

• Air, Land, and Naval Facilities: Infrastructure development and enhancement.
• Bulk Fuel Systems: Storage and pipeline systems.
• Communications and IT Networks: Core communication infrastructure and satellite communication.
• Surveillance and Reconnaissance: JISR capabilities for strategic information gathering.
• Cyber and Digital Capabilities: Enhancing NATO’s digital and cybersecurity posture.
• Interoperability Standards: Ensuring seamless operation among Alliance forces.
• Artificial Intelligence: Investment in AI for strategic advantages.
• Climate Change Cooperation: Addressing climate-related security challenges.

Implementation Strategies:

• Prioritization and Efficiency: Focused resource allocation to meet strategic priorities.
• Operational Requirements Submission: Expedite operational requirements for timely decision-making.
• Inflation Consideration: Integrating inflation impacts into resource planning.
• Transparency and Accountability: Enhancing management performance and accountability measures.

This detailed report aims to provide a thorough understanding of the CFRP, ensuring NATO’s strategic objectives are met with the necessary resources and financial planning.

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NATO’s Resource Management and Financial Contributions: An In-Depth Analysis

NATO is resourced through the direct and indirect contributions of its members. NATO’s common funds are composed of direct contributions to collective budgets and programs, which equate to only 0.3% of total Allied defense spending (around EUR 3.3 billion for 2023). These funds enable NATO to deliver capabilities and run the entirety of the Organization and its military commands.

National (or indirect) contributions are the largest component of NATO funding and are borne by individual member countries. These include the forces and capabilities held by each member country, which can be provided to NATO for deterrence and defense activities and military operations. Direct contributions finance NATO’s budgets, programs, and capabilities in support of objectives, priorities, and activities that serve the interests of the Alliance as a whole – and cannot reasonably be borne by any single member – such as Alliance operations and missions or NATO-wide air defense or command and control systems.

All Allies contribute to funding NATO using an agreed cost share formula derived from the Gross National Income of member countries. This is the principle of common funding, and it demonstrates burden-sharing in action. NATO has three principal common-funded budgets: the civil budget (funding NATO Headquarters), the military budget (funding the NATO Command Structure), and the NATO Security Investment Programme (funding military infrastructure and capabilities). Programs and initiatives can also be jointly funded, which means that the participating countries can identify the priorities and the funding arrangements, while NATO provides political oversight.

NATO common funding is underpinned by strong governance mechanisms, with Allies collectively deciding what is eligible for common funding and how much can be spent each year. They also collectively decide on the resource planning figures for the medium term. The North Atlantic Council oversees the common funding processes, which are governed by the Resource Policy and Planning Board, the Budget Committee, and the Investment Committee.

Indirect Funding of NATO

When the North Atlantic Council – NATO’s top political decision-making body – unanimously decides to engage in an operation or mission, there is no obligation for each and every member to contribute unless it is an Article 5 collective defense operation, in which case expectations are different. In all cases, NATO (as an organization) does not have its own armed forces, so Allies commit troops and equipment on a voluntary basis. Contributions vary in form and scale. For example, Allies can choose to contribute a few soldiers or thousands of troops to a NATO operation or mission. Contributions can also include any kind of materiel, from armored vehicles, naval vessels, or helicopters to all forms of equipment or support, medical or other. These contributions are offered by individual Allies and are taken from their overall defense capability to form a combined Alliance capability, with each covering the costs associated with their deployments.

The 2% Defense Investment Guideline

In 2006, NATO Defense Ministers agreed to commit a minimum of 2% of their Gross Domestic Product (GDP) to defense spending to continue to ensure the Alliance’s military readiness. This guideline also serves as an indicator of a country’s political will to contribute to NATO’s common defense efforts, since the defense capacity of each member has an impact on the overall perception of the Alliance’s credibility as a politico-military organization.

The combined wealth of the non-US Allies, measured in GDP, is almost equal to that of the United States. However, non-US Allies together spend less than half of what the United States spends on defense. This imbalance has been a constant, with variations, throughout the history of the Alliance and has grown more pronounced since the tragic events of 11 September 2001, after which the United States significantly increased its defense spending. The volume of US defense expenditure represents approximately two-thirds of the defense spending of the Alliance as a whole. However, this is not the amount that the United States contributes to the operational running of NATO, which is shared with all Allies according to the principle of common funding. Moreover, US defense spending also covers commitments outside the Euro-Atlantic area. It should be noted, nonetheless, that the Alliance relies on the United States for the provision of some essential capabilities, regarding, for instance, intelligence, surveillance, and reconnaissance; air-to-air refueling; ballistic missile defense; and airborne electromagnetic warfare.

The effects of the 2007-2008 financial crisis and the declining share of resources devoted to defense in many Allied countries, up to 2014, have exacerbated this imbalance and also revealed growing asymmetries in capability among European Allies. France, Germany, and the United Kingdom together represent approximately 50% of defense spending by the non-US Allies. At the Wales Summit in 2014, in response to Russia’s illegal annexation of Crimea, and amid broader instability in the Middle East, NATO Leaders agreed to a Defense Investment Pledge to reverse the trend of declining defense budgets and decided:

• Allies currently meeting the 2% guideline on defense spending will aim to continue to do so.
• Allies whose current proportion of GDP spent on defense is below this level will: halt any decline; aim to increase defense expenditure in real terms as GDP grows; and aim to move towards the 2% guideline within a decade with a view to meeting their NATO Capability Targets and filling NATO’s capability shortfalls.

In order to ensure that these funds are spent in the most effective and efficient way to acquire and deploy modern capabilities, NATO Allies have also agreed that at least 20% of defense expenditure should be devoted to major new equipment. This includes associated research and development, perceived as a crucial indicator for the scale and pace of modernization.

The Defense Investment Pledge endorsed in 2014 called for Allies to meet the 2% of GDP guideline for defense spending and the 20% of annual defense expenditure guideline on major new equipment by 2024. Since Russia’s full-scale invasion of Ukraine in February 2022, a majority of Allies have committed to investing more, and more quickly, in defense.

At the 2023 Vilnius Summit, NATO Leaders agreed to a new Defense Investment Pledge, making an enduring commitment to investing at least 2% of GDP annually on defense. They also affirmed that in many cases, expenditure beyond 2% of GDP will be needed in order to remedy existing shortfalls and meet the requirements across all domains arising from a more contested security order. The new Defense Investment Pledge also calls for Allies to meet the 20% of annual defense expenditure guideline on major new equipment, including research and development.

In 2024, 23 Allies are expected to meet or exceed the target of investing at least 2% of GDP in defense, compared to only three Allies in 2014. Over the past decade, European Allies and Canada have steadily increased their collective investment in defense – from 1.43% of their combined GDP in 2014, to 2.02% in 2024, when they are investing a combined total of more than USD 430 billion in defense.

The Major Equipment Spending Guideline

National defense budgets cover essentially three categories of expenditures: personnel expenses including pensions; research, development, and procurement of defense equipment; and, lastly, operations, exercises, and maintenance. Budget allocation is a national, sovereign decision, but NATO Allies have agreed that at least 20% of defense expenditures should be devoted to major equipment spending, including the associated research and development, perceived as a crucial indicator for the scale and pace of modernization. Where expenditures fail to meet the 20% guideline, there is an increasing risk of equipment becoming obsolete, growing capability and interoperability gaps among Allies, and a weakening of Europe’s defense industrial and technological base.

At the Wales Summit in 2014, NATO Leaders agreed that, within a decade, Allies who are spending less than 20% of their annual defense spending on major equipment will aim to increase their annual investments to 20% or more of total defense expenditures.

At the 2023 Vilnius Summit, Allied Leaders pledged to invest at least 20% of their defense budgets on major equipment and related research and development.

Allies will also ensure that their forces meet NATO-agreed guidelines for deployability and sustainability and other agreed output metrics; and they will see to it that their armed forces can operate together effectively, including through the implementation of agreed NATO standards and doctrines.

Direct Funding of NATO

NATO has annual budgets and programs worth around EUR 3.3 billion, which inter alia support its permanent military command structure, enable its current operations and missions, and provide essential military infrastructure (including air and naval basing facilities, satellite communications, fuel pipelines, and command and control systems). This represents 0.3% of total Allied defense spending. This direct funding comes principally in two forms: common funding and joint funding. It can also come in the form of trust funds, contributions in kind, ad hoc sharing arrangements, and donations.

The Principle of Common Funding

Since NATO was founded, common funding has played a strategic role in supporting the Alliance’s objectives, priorities, and core tasks. Allies pool their collective resources in order to provide and deliver key NATO programs and capabilities.

When a certain priority or initiative has been identified, the Resource Policy and Planning Board (RPPB) assesses whether the principle of common funding applies – in other words, whether the provision of a capability or conduct of an activity serves the interests of the Alliance as a whole and should therefore be resourced from common funding.

Common funding arrangements apply to the NATO civil and military budgets and the NATO Security Investment Programme (NSIP). Together, these common-funded budgets reinforce the Alliance, providing major capabilities, enabling deterrence, defense, and interoperability, and supporting consultation and decision-making at the highest levels. These are the only funds for which NATO authorities identify their funding needs in accordance with the Alliance’s overarching objectives and priorities. Allied common funding contributions to NATO are established using an agreed cost-sharing formula derived from the Gross National Income of NATO member countries. Where military common funding is concerned – the military budget and the NSIP – the ‘over and above’ principle guides Allies’ decisions. In essence, it focuses on the provision of requirements that would not be reasonable for an Ally to bear individually.

The criteria for common funding are reviewed regularly and adjusted to keep up with NATO’s evolving political-military objectives and needs. At the 2021 Brussels Summit, NATO Leaders agreed to increase NATO resourcing, including, as necessary, NATO common funding, taking into account sustainability, affordability, and accountability. At the 2022 Madrid Summit, NATO Leaders committed to a concrete financial trajectory for all three NATO budgets starting in 2023. As a result, increased national defense expenditures and NATO common funding will be commensurate with the challenges of a more contested security order. Investments in collective defense and key capabilities are essential.

The Civil Budget

The civil budget supports Allies’ consultation and decision-making. It provides funds for personnel expenses, operating costs, and capital and program expenditure of the International Staff at NATO Headquarters in Belgium. It is financed from national foreign ministry budgets (in most countries); its implementation is overseen by the Budget Committee. The civil budget for 2023 is EUR 370.8 million. The NATO Secretary General is the budget holder of the civil budget.

The civil budget is formulated in line with an objectives-based framework, which establishes clear links between NATO’s strategic objectives and the resources required to achieve them. There are five frontline objectives which encompass support for crisis management and operations, collective defense, cooperative security, public relations, and the consultation process among Allies. There are also three enabling objectives, which consist of: supporting the operational environment of the NATO Headquarters; governance and regulation through the monitoring of business policies, processes, and procedures; and NATO Headquarters’ security.

The Military Budget

The military budget supports and contributes to strengthening NATO’s deterrence and defense posture and to fostering interoperability across the Alliance. It funds the operating of selected common-funded capabilities, the integrated command structure, Alliance operations and missions, and to some extent, training and exercises. It is composed of separate sub-budgets, which are financed with contributions from Allies’ national defense budgets (in most countries) according to agreed cost shares. Its implementation is overseen by the Budget Committee. The primary military budget holders are the Supreme Allied Commander Europe (SACEUR), the Supreme Allied Commander Transformation (SACT), and the Director General of the International Military Staff (DGIMS).

Inter alia, the military budget provides funds for the integrated command structure, the International Military Staff, the NATO Strategic Commands, the NATO Airborne Early Warning and Control (NAEW&C) Force, and Alliance operations and missions. However, in all cases, the provision of military staff to the integrated command structure or to operations and missions remains a nationally funded responsibility. The military budget for 2023 is EUR 1.96 billion.

The NATO Security Investment Programme

The NATO Security Investment Programme (NSIP) supports and contributes to deterrence, defense, and security. It funds major construction and command and control systems under the ‘over and above’ principle described above. It provides installations and facilities such as air defense communication and information systems, military headquarters for the integrated command structure and for deployed operations, as well as critical airfield, fuel systems, and maritime infrastructure.

The NSIP is financed by the ministries of defense of each NATO member. Its implementation is overseen by the Investment Committee. Capabilities are delivered either by individual host nations or user nations, by NATO agencies or Strategic Commands. The 2023 ceiling for the NSIP is EUR 1 billion.

Joint Funding

Joint funding arrangements are established within the terms of an agreed NATO charter. The participating countries identify the priorities and the funding arrangements, while NATO has visibility and provides political oversight. Jointly funded programs vary in the number of participating countries, cost share arrangements, and management structures.

Joint funding is appropriate when there is a need for a long-term, subject-specific framework to implement large-scale requirements or specific initiatives. The most recent joint funding initiative is the establishment of the Defense Innovation Accelerator for the North Atlantic (DIANA). Joint funding arrangements can lead to the set-up of a management organization or agency within NATO.

Jointly funded activities range from the development and production of fighter aircraft or helicopters to the provision of logistics support or air defense communication and information systems. These include agencies for NATO’s Airborne Early Warning and Control capability (NAPMA), the NH90 Helicopter program (NAHEMA), and the Eurofighter-Typhoon and Tornado fighter jet programs (NETMA). NATO agencies also coordinate research and development activities or are active in the fields of standardization and intelligence-sharing.

Other Forms of Funding

In addition to common funding and joint funding, some projects can take the form of contributions in kind or trust fund arrangements.

Financial Management, Accountability, and Transparency

There is a strong governance structure through which Allies decide what is eligible for common funding, how much can be spent each year, and what it may be spent on. Decision-making by consensus and well-established governance frameworks are fundamental to the way that common funding is managed at NATO. One of NATO’s main objectives is to be an effective and efficient steward of public resources.

Financial Management of NATO’s Common-Funded Budgets

The civil and military budgets and the NSIP contribution ceilings are annual, coinciding with the calendar year. Each budget is prepared under the authority of the head of the respective NATO body. The funding ceilings are set by the Resource Policy and Planning Board and agreed by the North Atlantic Council. When the annual budget has been approved, the heads of the relevant NATO bodies have discretion to execute it through the expenditure of funds for the purposes authorized. The administrative support for this task is largely entrusted to the financial controller of the relevant NATO body. The financial controller is charged with ensuring that all aspects of the execution of the budget conform to expenditure authorizations, to any special controls imposed by the Budget Committee, and to the financial regulations and their associated implementing rules and procedures. They may also, in response to internal auditing, institute such additional controls and procedures as they deem necessary for maintaining accountability.

Financial Management and Reform

In September 2014, NATO Leaders decided, inter alia, to reform governance, transparency, and accountability, especially in the management of NATO’s financial resources. This drive for transparency and accountability strove to improve insight into how NATO manages, spends, and reports on the use of taxpayer funds.

As part of these measures, the NATO Financial Regulations (NFRs) became publicly available. They govern the financial administration of all NATO bodies and provide key policy guidance for ensuring effective and economical budgetary and financial administration. In 2015, a major review of these NFRs was conducted to strengthen financial management and accountability, and to reflect best practices in public finance.

Additional transparency steps were taken to declassify International Board of Auditors for NATO (IBAN) reports and make them available to the public. These IBAN reports include financial audits and statements, performance audits, or other special reports. NATO Allies’ agreement of the civil and military budgets is also published on the NATO website every year.

Reform of NATO’s Common-Funded Capabilities Delivery Process

A reform was introduced in 2018 to accelerate the delivery of common-funded capabilities across NATO. Founded on the key principles of accountability and separating the governance and management of projects, a standardized model covering the entire capability life cycle has been established. It reduces the number of times consensus decision-making is required throughout implementation; it introduces a single project-level authorization; and it holds the management authorities accountable for handling the delivery of programs and projects, within agreed tolerances, making the need for governance decisions an exception. It also introduces the incremental delivery of complex capabilities that are highly dependent on technology by delivering individual components within months.

Bodies and Stakeholders Involved

North Atlantic Council

The North Atlantic Council approves NATO budgets and investments and exercises oversight over NATO’s financial management. The Resource Policy and Planning Board (RPPB) advises the Council on resource policy and allocation. The Council seeks resource advice from the RPPB when deciding on new initiatives, activities, operations, or missions.

Resource Policy and Planning Board

The Resource Policy and Planning Board (RPPB) is the senior advisory body to the Council on NATO resources. It has responsibility for the overall governance of NATO’s civil and military budgets, as well as the NATO Security Investment Programme (NSIP) and the budgetary implications of common-funded personnel. Both the Budget Committee and the Investment Committee report to the RPPB.

Budget Committee and Investment Committee

The Budget Committee is responsible to the RPPB for the implementation of NATO’s civil and military budgets. The Investment Committee is responsible to the RPPB for the implementation of the NSIP.

NATO Office of Resources

The NATO Office of Resources (NOR) provides independent and integrated expert advice to the Secretary General, NATO resource committees, Allies, and other stakeholders on the planning, allocation, and utilization of military common funding made available to achieve NATO’s goals and objectives. Advice from the NOR is based on sound judgment underpinned by facts, figures, expertise, and knowledge. It follows NATO policies, procedures, and standards, and is independent of external stakeholders’ viewpoints. It supports the efficient and effective use of public funds by assessing the policy compliance, eligibility, affordability, technical viability, and lifecycle implications of military requirements and proposed solutions. Furthermore, the NOR facilitates resource-informed political decision-making.

Budget Holders

The Secretary General, the Supreme Commanders, and the other heads of NATO bodies are responsible and accountable for sound financial management, as well as for providing the requirements for common funding. This includes the establishment and maintenance of financial governance, resource management practices, internal controls, and financial information systems to achieve the efficient and effective use of resources.

International Board of Auditors for NATO

The International Board of Auditors for NATO (IBAN) is the independent, external audit body for NATO. Through its audits, it provides the North Atlantic Council and the governments of member states with assurance that financial reporting is true and fair and funds have been

properly used for the settlement of authorized expenditure. In addition, the IBAN reviews the operations of NATO bodies to determine if they are being carried out effectively and economically.

The IBAN conducts three types of audits: financial statements audits of NATO Reporting Entities, performance audits of NATO, and audits of the NATO Security Investment Programme. As such, it contributes to the strengthening of accountability and corporate governance within NATO.

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APPENDIX 1 – GDP 2014 – 2024E

Table 5 : GDP
Million US dollars
	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023e	2024e
Current prices and exchange rates
Albania	13,246	11,389	11,862	13,053	15,156	15,399	15,192	17,984	19,083	22,743	25,431
Belgium	535,528	462,383	475,931	502,587	543,545	535,925	525,843	601,147	583,895	630,704	655,744
Bulgaria	57,080	50,766	53,926	59,288	66,398	68,889	70,311	84,100	90,422	101,611	106,721
Canada	1,805,748	1,556,511	1,527,996	1,649,271	1,725,297	1,743,730	1,655,685	2,007,472	2,161,483	2,140,086	2,233,829
Croatia	58,711	50,481	52,749	56,856	62,829	62,838	58,174	69,651	72,057	82,710	89,895
Czechia	209,305	188,114	196,193	218,891	249,261	252,654	246,046	281,711	290,498	331,224	326,130
Denmark	352,982	302,679	313,100	332,112	356,839	346,506	354,761	405,687	400,161	404,183	418,584
Estonia	26,625	22,881	24,056	26,881	30,592	31,259	31,291	36,836	37,923	40,756	41,886
Finland	274,934	234,558	240,705	255,558	275,833	268,545	271,668	296,663	282,105	300,274	302,719
France	2,860,031	2,440,769	2,470,977	2,596,965	2,794,038	2,732,071	2,644,242	2,958,295	2,780,433	3,035,467	3,120,348
Germany	3,896,203	3,355,015	3,462,962	3,694,227	3,982,019	3,896,534	3,876,612	4,270,522	4,078,694	4,458,611	4,610,035
Greece	235,519	195,704	193,095	199,774	212,146	205,167	188,684	216,384	218,698	240,073	249,811
Hungary	141,034	125,174	128,610	143,113	160,566	164,010	157,289	182,110	177,788	212,464	231,612
Iceland	17,868	17,517	20,793	24,728	26,261	24,682	21,630	25,798	28,702	31,020	32,894
Italy	2,164,173	1,835,521	1,877,709	1,963,794	2,092,708	2,011,295	1,894,127	2,153,592	2,069,149	2,258,302	2,311,170
Latvia	31,395	27,266	28,076	30,473	34,445	34,229	34,363	39,469	40,454	43,640	45,152
Lithuania	48,611	41,440	43,035	47,742	53,776	54,815	56,919	66,843	71,070	77,859	80,717
Luxembourg	68,792	60,202	62,162	65,819	70,965	69,652	73,625	85,538	81,969	57,529	60,689
Montenegro	4,595	4,055	4,376	4,855	5,509	5,543	4,777	5,865	6,243	7,406	8,022
Netherlands	892,368	765,823	783,668	834,413	914,612	909,682	908,441	1,029,762	1,010,554	1,119,508	1,162,883
North Macedonia	11,378	10,067	10,686	11,336	12,694	12,609	12,385	14,008	13,735	14,769	15,873
Norway	501,737	388,160	370,956	401,746	439,789	408,742	367,633	503,368	593,727	485,513	482,584
Poland	538,944	475,855	469,766	524,602	588,270	595,256	598,914	681,423	689,253	812,104	848,857
Portugal	229,961	199,415	206,369	221,280	242,423	240,013	228,849	255,705	255,397	287,163	298,976
Romania	199,714	177,884	185,288	210,147	243,316	251,018	251,699	286,015	299,470	350,919	383,921
Slovak Republic	101,463	88,910	89,928	95,616	106,186	105,723	106,652	118,642	115,676	132,832	142,812
Slovenia	50,010	43,112	44,754	48,572	54,203	54,393	53,692	61,873	60,111	68,236	73,517
Spain	1,372,176	1,196,280	1,233,216	1,312,781	1,422,349	1,394,474	1,277,106	1,446,613	1,418,916	1,581,151	1,658,360
Sweden	582,981	504,993	514,607	540,922	555,712	534,208	546,657	638,245	589,306	593,447	626,536
Türkiye	938,511	864,071	869,280	858,933	780,189	760,521	720,159	818,337	905,841	1,108,453	1,090,290
United Kingdom	3,066,303	2,928,557	2,699,086	2,682,385	2,875,024	2,853,072	2,699,734	3,142,262	3,100,109	3,341,277	3,520,496
United States	17,608,138	18,295,019	18,804,913	19,612,103	20,656,516	21,521,395	21,322,950	23,594,031	25,744,108	27,360,935	28,719,942
NATO Europe and Canada	20,414,040	17,871,876	17,895,542	18,820,901	20,148,710	19,828,091	19,134,836	21,867,014	21,671,511	23,778,586	25,256,495
NATO Total	38,022,179	36,166,895	36,700,455	38,433,004	40,805,225	41,349,486	40,457,785	45,461,045	47,415,620	51,139,521	53,976,437
Constant 2015 prices and exchange rates
Albania	11,142	11,389	11,767	12,214	12,705	12,970	12,542	13,659	14,321	14,793	15,249
Belgium	453,133	462,383	468,239	475,822	484,354	495,209	469,155	501,297	516,386	523,929	530,709
Bulgaria	49,098	50,766	52,302	53,738	55,187	57,413	55,136	59,361	61,691	62,831	64,043
Canada	1,546,459	1,556,511	1,572,676	1,620,388	1,664,835	1,696,607	1,611,128	1,696,308	1,761,105	1,779,878	1,798,435
Croatia	49,226	50,481	52,323	54,084	55,697	57,615	52,706	59,579	63,766	65,718	67,886
Czechia	178,374	188,114	192,724	203,027	209,536	215,750	203,845	210,971	215,929	215,545	217,937
Denmark	295,734	302,679	312,509	321,319	327,715	332,591	324,533	346,763	356,232	362,958	371,436
Estonia	22,369	22,881	23,586	24,874	25,832	26,849	26,666	28,631	28,495	27,604	27,497
Finland	233,287	234,558	241,153	248,855	251,689	254,769	248,767	255,824	259,241	256,559	255,591
France	2,415,427	2,440,769	2,464,732	2,525,383	2,571,290	2,619,845	2,418,677	2,572,607	2,637,594	2,660,510	2,679,691
Germany	3,313,881	3,355,015	3,426,873	3,529,121	3,564,546	3,603,917	3,452,645	3,560,517	3,627,506	3,623,561	3,631,139
Greece	196,088	195,704	194,750	196,877	200,162	203,772	185,394	200,848	212,362	216,576	220,819
Hungary	120,699	125,174	127,929	133,394	140,547	147,384	140,770	150,711	157,618	156,188	159,420
Iceland	16,773	17,517	18,621	19,402	20,351	20,730	19,291	20,284	22,086	22,983	23,420
Italy	1,823,987	1,835,521	1,861,730	1,894,253	1,909,010	1,918,176	1,744,588	1,889,011	1,967,314	1,987,327	2,000,487
Latvia	26,246	27,266	27,912	28,836	29,987	30,163	29,103	31,062	31,980	31,890	32,479
Lithuania	40,617	41,440	42,484	44,303	46,072	48,222	48,210	51,240	52,490	52,314	53,222
Luxembourg	58,860	60,202	63,206	64,045	64,846	66,743	66,157	70,890	71,884	47,534	48,366
Montenegro	3,922	4,055	4,175	4,372	4,594	4,780	4,049	4,577	4,856	5,146	5,319
Netherlands	751,122	765,823	782,226	805,703	824,376	840,033	807,400	857,352	894,962	896,434	902,784
North Macedonia	9,693	10,067	10,354	10,466	10,767	11,188	10,664	11,145	11,392	11,509	11,820
Norway	381,082	388,160	392,681	402,355	405,691	410,249	405,006	420,836	433,485	435,714	439,238
Poland	456,283	475,855	490,650	516,210	546,499	570,467	558,924	597,321	632,444	632,909	651,390
Portugal	195,904	199,415	203,442	210,575	216,575	222,385	203,926	215,626	230,348	235,557	239,442
Romania	172,434	177,884	182,967	197,964	209,899	217,987	209,971	221,958	231,074	236,038	243,831
Slovak Republic	84,542	88,910	90,638	93,301	97,062	99,499	96,186	100,775	102,660	104,299	106,498
Slovenia	42,180	43,112	44,488	46,630	48,707	50,423	48,285	52,258	53,544	54,394	55,621
Spain	1,152,058	1,196,280	1,232,620	1,269,299	1,298,296	1,324,054	1,176,192	1,251,507	1,323,728	1,356,864	1,380,612
Sweden	484,476	504,993	514,253	528,755	539,501	550,420	537,580	569,532	585,190	585,237	588,499
Türkiye	814,513	864,071	892,785	959,762	988,681	996,774	1,015,313	1,131,458	1,194,067	1,248,001	1,290,190
United Kingdom	2,864,948	2,928,557	2,984,816	3,064,065	3,107,078	3,158,084	2,830,910	3,076,489	3,210,169	3,213,508	3,227,637
United States	17,771,549	18,295,019	18,627,888	19,085,692	19,651,868	20,136,688	19,690,969	20,833,086	21,236,308	21,776,285	22,334,404
NATO Europe and Canada	17,533,176	17,871,876	18,211,677	18,771,318	19,130,130	19,448,693	18,227,371	19,405,041	20,121,489	20,539,068	21,340,707
NATO Total	35,304,726	36,166,895	36,839,565	37,857,009	38,781,998	39,585,381	37,918,340	40,238,127	41,357,798	42,315,353	43,675,111
Notes: Figures for 2023 and 2024 are estimates. The NATO Europe and Canada and NATO Total aggregates from 2017 onwards includ e Montenegro, which became an Ally on 5 June 2017, from 2020 onwards include North Macedonia, which became an Ally on 27 March 2020, from 2023 onwards include Finland, which became an Ally on 4 April 2023 and from 2024 onwards include Sweden, which became an Ally on 7 March 2024.

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APPENDIX 2 – GDP per capita and defence expenditure per capita

2015 prices and exchange rates

	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023e	2024e
GDP per capita (thousand US dollars)
Albania	3,9	4	4,1	4,3	4,4	4,5	4,4	4,9	5,2	5,4	5,6
Belgium	40,4	41	41,3	41,8	42,4	43,1	40,6	43,2	44,2	44,6	45
Bulgaria	6,8	7,1	7,3	7,6	7,9	8,2	8	8,6	9,5	9,8	10
Canada	43,6	43,6	43,6	44,3	44,9	45,1	42,4	44,4	45,2	44,9	44,6
Croatia	11,6	12	12,5	13,1	13,6	14,2	13	15,1	16,3	16,8	17,4
Czechia	16,9	17,8	18,2	19,2	19,7	20,2	19,1	19,7	20,2	20	20,3
Denmark	52,4	53,3	54,5	55,7	56,6	57,2	55,7	59,2	60,3	61,1	62,3
Estonia	17	17,4	17,9	18,9	19,6	20,3	20,1	21,5	21,4	20,2	20,1
Finland	42,7	42,8	43,9	45,2	45,6	46,1	45	46,2	46,7	46	45,7
France	36,4	36,7	36,9	37,6	38,1	38,7	35,6	37,7	38,5	38,7	38,9
Germany	40,9	41,1	41,6	42,7	43	43,4	41,5	42,8	43,3	43	43
Greece	18	18,1	18,1	18,3	18,6	19	17,3	18,9	20,1	20,6	21,1
Hungary	12,2	12,7	13	13,6	14,4	15,1	14,4	15,5	16,3	16,2	16,5
Iceland	51,2	53	55,5	56,5	57,7	57,5	52,6	54,5	57,8	58,9	59
Italy	30,2	30,5	31	31,6	31,9	32,1	29,4	31,9	33,3	33,7	33,9
Latvia	13,2	13,8	14,2	14,9	15,6	15,8	15,3	16,5	17	16,8	17,1
Lithuania	13,9	14,3	14,8	15,7	16,4	17,3	17,2	18,2	18,5	18,5	18,9
Luxembourg	105,4	105,7	108,2	107,3	106,5	107,4	104,8	110,6	109,7	71,1	71,2
Montenegro	6,3	6,5	6,7	7	7,4	7,7	6,5	7,4	7,9	8,2	8,4
Netherlands	44,5	45,2	45,9	47	47,8	48,4	46,3	48,9	50,6	50,2	50,3
North Macedonia	4,7	4,9	5	5	5,2	5,4	5,1	5,7	5,9	5,6	5,7
Norway	74,2	74,8	75	76,2	76,4	76,7	75,3	77,8	79,4	79,5	79,8
Poland	11,9	12,4	12,8	13,4	14,2	14,9	14,6	15,7	16,7	16,7	17,3
Portugal	18,8	19,3	19,7	20,4	21,1	21,6	19,8	20,9	22,4	22,9	23,3
Romania	8,7	9	9,3	10,1	10,8	11,2	10,9	11,6	12,1	12,4	12,8
Slovak Republic	15,6	16,4	16,7	17,2	17,8	18,2	17,6	18,5	18,7	19	19,4
Slovenia	20,5	20,9	21,5	22,6	23,5	24,1	23	24,8	25,4	25,7	26,2
Spain	24,8	25,8	26,5	27,3	27,8	28,1	24,8	26,4	27,8	28,3	28,6
Sweden	50	51,5	51,8	52,6	53	53,5	51,9	54,7	55,8	55,4	55,3
Türkiye	10,6	11	11,3	12	12,1	12,1	12,2	13,4	14,1	14,5	14,8
United Kingdom	44,4	45	45,5	46,4	46,8	47,3	42,2	45,9	47,4	47,1	47
United States	55,6	56,8	57,4	58,4	59,8	60,9	59,3	62,7	63,7	65	66,3
NATO Europe and Canada	29,3	29,7	30,1	30,9	31,4	31,7	29,6	31,4	32,5	32,6	33,2
NATO Total	38,4	39,1	39,7	40,5	41,3	42	40	42,4	43,4	43,9	44,6
Defence expenditure per capita (US dollars)
Albania	52	46	45	47	51	58	57	60	62	94	114
Belgium	393	373	370	370	378	383	411	449	523	539	585
Bulgaria	89	88	91	93	114	258	127	131	152	191	218
Canada	439	523	505	637	583	584	597	564	542	587	609
Croatia	211	210	199	213	209	226	220	294	291	293	315
Czechia	160	182	173	198	218	239	248	274	271	274	426
Denmark	602	592	626	634	723	740	767	770	825	1,231	1,479
Estonia	328	353	371	381	394	413	461	438	462	614	690
Finland	620	621	623	625	633	670	688	645	782	959	1,103
France	663	653	660	668	689	700	706	720	724	758	801
Germany	485	488	500	526	537	585	628	622	652	705	911
Greece	400	418	434	435	474	465	504	698	780	577	648
Hungary	105	115	131	163	145	201	254	205	299	332	349
Italy	345	325	365	379	391	376	466	492	508	505	505
Latvia	123	142	204	237	321	319	331	344	359	483	539
Lithuania	122	162	219	268	323	344	356	357	453	514	538
Luxembourg	388	438	411	531	534	588	606	521	618	794	921
Montenegro	95	92	95	94	101	102	113	115	108	126	170
Netherlands	513	512	532	540	582	641	652	665	727	834	1,03
North Macedonia	51	51	48	45	49	62	64	83	95	101	127
Norway	1,142	1,183	1,3	1,3	1,31	1,414	1,48	1,304	1,163	1,441	1,754
Poland	222	275	255	255	287	295	325	347	372	545	711
Portugal	246	255	250	253	282	297	283	319	313	338	360
Romania	117	130	133	175	193	206	219	215	210	198	289
Slovak Republic	154	182	186	189	218	311	338	323	338	350	387
Slovenia	199	194	216	222	237	254	243	306	328	344	339
Spain	228	239	215	247	258	255	249	271	322	337	366
Sweden	532	521	505	508	515	557	568	777	811	919	1,185
Türkiye	153	153	164	180	221	224	226	216	191	217	310
United Kingdom	950	914	949	964	982	984	993	1,051	1,082	1,084	1,097
United States	2,065	1,991	2,006	1,916	1,947	2,115	2,123	2,211	2,108	2,1	2,239
NATO Europe and Canada	418	423	433	457	474	489	509	521	538	579	669
NATO Total	991	970	983	967	990	1,059	1,073	1,113	1,088	1,108	1,21
Notes: Figures for 2023 and 2024 are estimates. The NATO Europe and Canada and NATO Total aggregates from 2017 onwards include Montenegro, which became an Ally on 5 June 2017, from 2020 onwards include North Macedonia, which
became an Ally on 27 March 2020, from 2023 onwards include Finland, which became an Ally on 4 April 2023 and from 2024 onwards include Sweden, which became an Ally on 7 March 2024.

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All data was processed based on official NATO documents -https://www.nato.int/

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