Poland’s recent declaration to set a global record in military spending marks a decisive shift in its defense strategy. On Tuesday, Defense Minister Wladyslaw Kosiniak-Kamysz announced that the country plans to allocate a substantial 4.7% of its Gross Domestic Product (GDP) to defense next year. This allocation is not only unprecedented for Poland but also sets a new standard globally for defense spending, outpacing many of its NATO allies. This ambitious move, revealed on the sidelines of a defense industry exhibition in Kielce, reflects a combination of national security priorities, regional geopolitical pressures, and a comprehensive approach to military modernization.
The announcement follows an already significant increase in Poland’s defense budget for 2024, which had previously set a record by earmarking 4.1% of the nation’s GDP for military expenditure. As of August, Polish media had reported the government’s intentions to push this figure even higher, edging toward the 5% mark. Such a leap would solidify Poland’s position as a leader in military investment, surpassing even the defense budgets of long-established military powers within the NATO alliance.
Currently, only five NATO member states — Poland, Estonia, the United States, Latvia, and Greece — allocate more than 3% of their GDP to military needs. Poland’s projected 4.7% not only sets it apart but also pushes it far beyond the standard NATO requirement that member states allocate at least 2% of their GDP to defense. As it stands, only two-thirds of the 32-member alliance have met this threshold, making Poland’s commitment all the more significant in the broader context of European and transatlantic defense policy.
NATO allies increase defense spending following Russia’s invasion of Ukraine
Defense spending as share of real GDP (%)
Source: NATO • *2024 numbers are estimates. Iceland excluded as it does not have a standing army.
Poland’s Defense Strategy: Beyond Numbers
While the figures alone signal a strong commitment to defense, the motivations behind Poland’s unprecedented increase in military spending are multifaceted. The country finds itself at the crossroads of significant geopolitical shifts, particularly in light of increasing tensions with Russia and the ongoing war in Ukraine. These factors have prompted a reevaluation of Poland’s national defense priorities, leading to a more assertive approach to military preparedness.
Poland’s geographic position, bordering both Russia and Belarus, has made it a key player in NATO’s eastern flank. The threat posed by Russian aggression, particularly following the annexation of Crimea in 2014 and the subsequent conflict in Ukraine, has reshaped Poland’s defense posture. The Polish government has emphasized the need for a robust, modern military that can deter potential threats and contribute effectively to NATO’s collective security efforts.
This strategic shift is evident not only in budgetary allocations but also in the nature of Poland’s military procurement plans. The country has embarked on an ambitious program to modernize its armed forces, focusing on acquiring advanced weaponry, upgrading its existing military equipment, and enhancing its capabilities in key areas such as air defense, cybersecurity, and intelligence.
Military Procurement: A Focus on Modernization
Poland’s defense spending increase is expected to fund a wide range of procurement initiatives, with a particular focus on modernizing its military hardware and enhancing its operational capabilities. In recent years, Poland has made significant strides in this area, signing major contracts for the purchase of advanced weapons systems and equipment from leading global defense contractors.
One of the most notable examples of this is Poland’s acquisition of the Patriot missile defense system from the United States, which has been hailed as a crucial step in bolstering the country’s air defense capabilities. The Patriot system, which is designed to intercept and destroy incoming ballistic missiles, cruise missiles, and advanced aircraft, will play a key role in Poland’s broader strategy to protect its airspace and critical infrastructure from potential threats.
In addition to the Patriot system, Poland has also made substantial investments in other areas of its military, including the purchase of F-35 fighter jets, state-of-the-art tanks, and advanced artillery systems. These acquisitions are part of a broader effort to build a more capable and technologically advanced military that can effectively respond to the challenges of modern warfare.
Poland’s emphasis on modernization is not limited to hardware. The country has also placed a strong focus on improving its cyber defense capabilities, recognizing the growing importance of cyber warfare in the 21st century. This includes investments in cutting-edge technology and training programs designed to enhance the skills of Poland’s military personnel in this critical area.
The Role of NATO and Regional Alliances
Poland’s commitment to increasing its defense spending is also closely tied to its role within NATO and its broader regional alliances. As a member of NATO since 1999, Poland has been a staunch supporter of the alliance’s collective defense principles, and its recent actions reflect a desire to strengthen its contributions to NATO’s security framework.
Poland’s defense spending surge is likely to have a ripple effect within NATO, encouraging other member states to reevaluate their own military budgets and defense strategies. As NATO continues to face a range of security challenges, from the threat of Russian aggression to the rise of cyber warfare, Poland’s example could serve as a model for other countries seeking to enhance their own defense capabilities.
At the same time, Poland’s increased military spending is also aimed at strengthening its bilateral relationships with key allies in the region. Poland has long maintained close ties with the United States, and its recent defense procurement deals with American defense contractors underscore the importance of this relationship. In addition, Poland has also sought to deepen its cooperation with other European countries, particularly those in the Baltic region, as part of a broader effort to build a cohesive and capable regional defense network.
Economic Implications of Increased Defense Spending
While Poland’s defense spending increase is driven by security concerns, it also has significant economic implications. The decision to allocate nearly 5% of the country’s GDP to military expenditures represents a substantial financial commitment, and it raises important questions about the long-term sustainability of such a strategy.
Poland’s economy has been one of the fastest-growing in Europe in recent years, and the government has argued that the country’s strong economic performance provides the necessary resources to support its ambitious defense spending plans. However, some critics have raised concerns about the potential impact of such a large defense budget on other areas of the economy, particularly in light of the global economic challenges posed by inflation, rising energy prices, and the lingering effects of the COVID-19 pandemic.
In particular, there are concerns about the opportunity costs associated with increased defense spending. Critics argue that the money allocated to the military could be better spent on other areas of the economy, such as healthcare, education, and infrastructure. Moreover, there are questions about the efficiency of Poland’s defense procurement process, with some analysts warning that the rapid expansion of the defense budget could lead to wasteful spending and mismanagement.
Despite these concerns, the Polish government has remained steadfast in its commitment to increasing defense spending, arguing that the security of the country must take precedence over other considerations. In a region where military threats are all too real, Poland’s leaders have made the case that a robust defense budget is not only a necessary investment in national security but also a means of ensuring the country’s long-term stability and prosperity.
The Broader Geopolitical Context
Poland’s decision to ramp up its military spending must also be understood in the context of broader geopolitical developments. The rise of China, the resurgence of Russia, and the shifting dynamics of global power have all contributed to a sense of uncertainty and instability in the international system. In this environment, countries like Poland have sought to bolster their military capabilities as a way of hedging against potential threats and ensuring their security in an increasingly unpredictable world.
The conflict in Ukraine has been a particularly important factor in shaping Poland’s defense strategy. The war has not only highlighted the threat posed by Russian aggression but has also underscored the importance of having a well-equipped and capable military that can respond effectively to crises. Poland’s proximity to the conflict has made it acutely aware of the need to be prepared for any potential spillover effects, and its increased defense spending is a reflection of this heightened sense of urgency.
At the same time, Poland’s defense spending increase is also a response to broader changes within NATO and the European Union. The United States’ strategic pivot to Asia has raised concerns among some European countries about the future of American security commitments in Europe, and Poland’s leaders have been vocal in calling for greater European responsibility in matters of defense.
Poland’s decision to set a world record for military spending reflects a broader trend among European countries to take greater control of their own security destinies. In this context, Poland’s actions are not just about defending its own borders but are also part of a larger effort to reshape the security architecture of Europe for the 21st century.
In conclusion, Poland’s ambitious plans for military spending in 2025 represent a significant shift in its defense strategy. While the financial costs are substantial, the government has made a clear case that the security benefits outweigh the risks. As Poland continues to modernize its military and strengthen its regional alliances, it is likely to play an increasingly important role in shaping the future of European and global security.
Rethinking NATO’s 2 Percent Target: Moving Beyond the Numbers for Collective Defense
The 2 percent defense spending target, established at the 2014 NATO Summit in Wales, has long been a benchmark for NATO allies to measure their commitment to collective defense. However, over the years, it has become clear that this metric, while useful for political signaling, does not fully capture the complexities of defense capability and readiness. The 2 percent target is increasingly viewed as a reductive way to assess burden-sharing within the Alliance, as it focuses on inputs rather than outputs—how much a nation spends versus what real military capabilities are being developed and deployed.
Russia’s first invasion of Ukraine in 2014 triggered a significant shift in NATO’s strategic calculations. At the time, the commitment to reach 2 percent of GDP in defense spending by 2024 seemed distant for many European nations. Progress toward this target has been inconsistent, and it wasn’t until Russia’s full-scale invasion of Ukraine in 2022 that the urgency of increasing defense budgets became apparent across the continent. German Chancellor Olaf Scholz’s historic Zeitenwende speech, delivered just days after Russia’s invasion, represented a pivotal moment in this regard. In his address, Scholz acknowledged that Germany had to fundamentally rethink its approach to defense, pledging an additional €100 billion to the country’s defense budget. This marked a significant shift for Germany, which had long resisted calls to significantly increase its military spending, particularly in light of its post-World War II pacifist orientation.
Image : NATO Working structures
At the 2023 NATO Summit in Vilnius, the Alliance not only renewed its commitment to the 2 percent target but also introduced a more comprehensive approach to defense planning and investment. The adoption of the Defense Production Action Plan was a critical development aimed at addressing more than just budgetary increases. The plan seeks to accelerate joint procurement, enhance interoperability, and boost both investment and production capacity across NATO member states. This approach reflects a growing recognition that the simple act of meeting a financial threshold is not enough; NATO allies must also focus on how those funds are allocated and what capabilities they generate.
In 2023, European NATO members increased their defense spending by 19 percent, according to the Stockholm International Peace Research Institute (SIPRI). This equated to an additional $78 billion in defense investment. In 2024, NATO anticipates that twenty-three of its thirty-two members will meet the 2 percent target, a significant increase from previous years. Moreover, this year marks the first time that European allies’ aggregate defense spending will exceed 2 percent of their collective GDP. While this signals that Europe is on the right track, the United States continues to be the dominant contributor to NATO’s defense budget, spending $916 billion in 2023, or 3.36 percent of its GDP.
However, as defense spending rises in Europe, the 2 percent target itself is increasingly seen as insufficient for capturing the full picture of NATO’s collective defense needs. China, for example, has increased its military spending more than thirteen-fold between 2000 and 2023, from $22 billion to $296 billion, while Russia’s defense budget has grown twelvefold, from $9 billion to $109 billion over the same period. These figures highlight that while NATO’s defense investments are increasing, so too are those of potential adversaries. Furthermore, estimates of Chinese and Russian defense spending often rely on educated guesswork and may underestimate the actual scope of their military expenditures.
The core issue with the 2 percent target is that it oversimplifies the complex realities of defense spending and military capability. It reduces the burden-sharing debate to a mathematical equation, focusing on how much countries spend rather than how effectively they spend it. For instance, a country may meet the 2 percent target but still lack critical military capabilities, such as modernized air defense systems, intelligence-gathering assets, or strategic mobility platforms. Similarly, some NATO members engage in creative accounting, inflating their defense budgets by including expenditures like pension payouts, which do little to enhance their actual military capabilities.
The 2014 NATO Summit not only set the 2 percent target but also established a requirement that by 2024, at least 20 percent of national defense spending should be allocated to frontline capabilities, including equipment and research and development. While all but two NATO members have met this standard, these figures fluctuate each year, further underscoring the inadequacy of focusing on a single metric like the 2 percent target.
Moving beyond the 2 percent threshold requires NATO members to focus on practical contributions to collective defense. European allies need to demonstrate tangible ways they are enhancing NATO’s deterrence and defense posture, particularly through contributions to multinational deployments on NATO’s eastern flank. In addition, Europe must address the gaps in strategic enablers—such as airlift capabilities, air-to-air refueling, and intelligence, surveillance, and reconnaissance (ISR) assets—that the United States currently supplies. Developing these capabilities will allow European nations to shoulder more responsibility for their own defense and reduce reliance on U.S. military assets.
Perhaps most importantly, NATO needs to shift its messaging around defense spending. The current discourse often frames collective defense as a “burden,” with debates focused on burden-sharing between the United States and Europe. Reframing this as “responsibility sharing” would help communicate a more positive and proactive message, emphasizing the collective responsibility of all NATO members to contribute to the Alliance’s defense. This shift in language would also help counter the narrative that NATO is overly dependent on U.S. military might, which is a concern in both European and American political circles.
The political context of the upcoming NATO Summit in Washington, D.C., is also critical. Taking place in July 2024, during the U.S. presidential election campaign, the summit presents an opportunity for European allies to send a clear signal to the American public that they are reliable and constructive partners. This messaging will need to appeal to both sides of the political aisle in the United States, particularly as defense spending and NATO commitments are often points of contention in U.S. domestic politics. Demonstrating that European allies are capable and willing to contribute to global security, especially in strategic regions like the Indo-Pacific, will be essential for maintaining strong transatlantic ties.
Ultimately, the 2 percent target has become a symbolic measure, but it is only one piece of the larger puzzle of NATO’s collective defense. As NATO members continue to increase their defense spending, it is essential that the conversation evolves beyond this simple metric. The focus should shift toward how these funds are being used to develop real military capabilities that contribute to NATO’s deterrence and defense posture. Allies must move away from fixating on the 2 percent figure and instead concentrate on ensuring that their investments translate into tangible military contributions.
The conversation surrounding NATO’s defense spending will likely continue for years to come. As more allies cross the 2 percent threshold, discussions around raising the target—already proposed by Poland and other nations—will intensify. Some U.S. lawmakers, such as Senator Roger Wicker, have even suggested that the United States should increase its own defense spending to 5 percent of GDP. As these debates unfold, it will become increasingly important for NATO to focus on qualitative, not just quantitative, measures of success.
In conclusion, NATO must begin telling a more nuanced story about defense spending and collective security. The 2 percent target has served its purpose as a political benchmark, but the real test lies in how effectively NATO members can convert their financial commitments into meaningful military capabilities. This is the challenge facing NATO as it enters its seventy-fifth year, and the Washington summit will be a critical moment for the Alliance to demonstrate that it is ready to meet it head-on.
| Cost share arrangements for civil budget, military budget and NATO Security Investment Programme | |
| Nation | Cost share “at 32” following the accession of Sweden Valid as from 7 March 2024 until 31 December 2024 |
| Albania | 0.0882 |
| Belgium | 2.0447 |
| Bulgaria | 0.3552 |
| Canada | 6.6840 |
| Croatia | 0.2910 |
| Czechia | 1.0259 |
| Denmark | 1.2744 |
| Estonia | 0.1213 |
| Finland | 0.9057 |
| France | 10.1940 |
| Germany | 15.8813 |
| Greece | 1.0273 |
| Hungary | 0.7380 |
| Iceland | 0.0624 |
| Italy | 8.5324 |
| Latvia | 0.1550 |
| Lithuania | 0.2493 |
| Luxembourg | 0.1645 |
| Montenegro | 0.0283 |
| Netherlands | 3.3528 |
| North Macedonia | 0.0756 |
| Norway | 1.7267 |
| Poland | 2.9015 |
| Portugal | 1.0194 |
| Romania | 1.1931 |
| Slovakia | 0.5014 |
| Slovenia | 0.2212 |
| Spain | 5.8211 |
| Sweden | 1.9277 |
| Türkiye | 4.5927 |
| United Kingdom | 10.9626 |
| United States | 15.8813 |
| TOTAL NATO | 100.0000 |
The civil budget
The civil budget supports Allies’ consultation and decision-making. It provides funds for personnel expenses, operating costs, and capital and programme 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 2024 is EUR 438.1 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 defence, 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 defence 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 defence 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 2024 is EUR 2.029 billion.
NATO at 75: Strengthening Collective Defense and Unity Amid Rising Global Threats
The July 2024 NATO summit in Washington, D.C., marks a momentous occasion as the Alliance celebrates its seventy-fifth anniversary. This summit is particularly significant, not only for its symbolic importance but for the tangible progress NATO has made in defense spending, military integration, and addressing collective security threats. Historically, one of NATO’s recurring challenges has been the uneven defense contributions among its members. The 2014 Wales Summit saw the establishment of a 2 percent of GDP defense spending target for all NATO members. However, many of these allies had failed to meet this commitment, placing a heavier financial burden on the United States and sparking ongoing debates about burden-sharing across the Alliance.
This year, the landscape has changed dramatically. A record twenty-three of NATO’s thirty-two member countries now meet the 2 percent defense spending target, a substantial increase from only six in 2021. This surge in military investment follows the geopolitical shock of Russia’s full-scale invasion of Ukraine in February 2022. The war, which has reshaped security dynamics across Europe and the world, has served as a clarion call for NATO members to take their defense responsibilities seriously. In response, European and Canadian NATO allies have collectively boosted their defense budgets by an unprecedented 18 percent in 2024. Overall, the Alliance is now spending 2.71 percent of its GDP on defense—a significant leap forward that underscores NATO’s renewed focus on collective security and deterrence.
The upcoming Washington summit will not only celebrate NATO’s longevity and achievements but will also serve as a platform for building on the positive momentum created by these defense spending increases. The summit is expected to highlight NATO’s unity, particularly its resolve in confronting Russia’s aggression, while also focusing on strengthening ties with Ukraine. Deepening the Alliance’s integration with Ukraine, a country that has long aspired to NATO membership and has been fighting to defend its sovereignty against Russian aggression, will be a central theme of the summit.
Poland has emerged as the leader in defense spending, dedicating 4.12 percent of its GDP to military expenditures—well above the 2 percent target. Poland’s proximity to the conflict in Ukraine and its historical wariness of Russian intentions have driven this significant investment in its military capabilities. As a frontline state bordering Belarus, a key ally of Russia, Poland’s military preparedness is seen as critical to NATO’s eastern defense posture. Additionally, the Polish government’s consistent investment in defense serves as a model for other NATO members, particularly those in Eastern Europe, who share similar concerns about Russian expansionism.
Sweden’s newly increased defense spending is another notable development. Since Russia’s invasion of Ukraine in 2022, Sweden has dramatically scaled up its military budget, marking a significant shift for a country that had previously maintained a more restrained defense posture. Sweden’s first participation in a NATO summit as an official member state, following its accession in March 2024, adds to the sense of renewal and expansion within the Alliance. Sweden’s membership bolsters NATO’s presence in the strategically important Baltic Sea region and sends a clear message to Moscow about NATO’s growing influence and unity in northern Europe.
The Washington summit is also an opportunity for NATO to reaffirm its commitment to Ukraine. Since the Russian invasion, NATO has provided extensive military, financial, and humanitarian assistance to Ukraine. However, as the war continues, Ukraine’s integration with NATO remains a complex and politically sensitive issue. While full membership is not expected imminently, the Washington summit is likely to explore further avenues of cooperation, including expanded military aid, intelligence sharing, and perhaps formal security guarantees. These steps would further solidify Ukraine’s position as a close partner of NATO, even if full membership remains a longer-term goal.
The significant increase in defense spending across the Alliance is more than just a response to immediate threats; it is also an investment in NATO’s future. As NATO adapts to an increasingly uncertain global security environment, characterized by not only state actors like Russia and China but also non-state threats such as cyber warfare, terrorism, and climate-related instability, the Alliance will need to remain agile and forward-looking. The heightened defense budgets reflect NATO members’ recognition of these challenges and their willingness to invest in the necessary capabilities to address them.
This collective increase in defense spending also speaks to the ongoing relevance of the NATO 2030 agenda, which was endorsed by NATO leaders at the 2021 summit. The agenda calls for the Alliance to address emerging security challenges and enhance its ability to operate in new domains, including space and cyberspace. The Washington summit will likely serve as a checkpoint for the progress made on these initiatives, as NATO continues to evolve its capabilities to confront the multifaceted threats of the modern world.
The 75th anniversary of NATO is more than just a commemoration of the Alliance’s historical achievements; it is a testament to its enduring relevance in a rapidly changing world. The surge in defense spending among NATO members signifies a renewed commitment to collective defense, burden-sharing, and deterrence. With twenty-three countries now meeting the 2 percent defense spending target, the Alliance is better prepared to face the threats of today and tomorrow. The Washington summit will build on this momentum, highlighting the successes of the past while charting a course for NATO’s future, with a focus on deepening its partnership with Ukraine and continuing to adapt to the global security challenges of the 21st century.
NSIP: Fiscal Year 2025 U.S. Budget Requirements
The United States’ contribution to the North Atlantic Treaty Organization (NATO) Security Investment Program (NSIP) holds profound significance not only in terms of fulfilling critical military infrastructure and capability requirements but also in cementing its pivotal leadership role in transatlantic affairs. The NSIP, as a program for NATO’s common defense funding, underpins many strategic initiatives, including the deployment of forward forces and upgrading military bases across NATO member states. For the United States, active participation in the NSIP enables it to retain a front-line influence in shaping the collective defense policies and actions of the NATO alliance. Additionally, the program’s operational outputs, such as military facility construction, serve U.S. military service members stationed in Europe, especially along NATO’s eastern flank and at forward-deployed positions.
In Fiscal Year (FY) 2025, the U.S. Department of Defense requested $433.9 million for the NSIP, marking a significant increase from previous fiscal year budgets. Specifically, the budget represents an increase of $140.4 million from the FY 2024 request. This increase is driven by various factors: firstly, it is aligned with the enhanced levels of common funding agreed upon at the NATO Summit in Madrid, Spain in 2022. Secondly, the revised cost-sharing agreements among NATO allies have been factored into the U.S. contribution, and lastly, adjustments for anticipated foreign exchange rates have also influenced the final budget request.
The U.S. government’s significant financial commitment to NATO’s common fund is not merely about defense infrastructure but also serves as an essential investment in global stability and security. This commitment ensures that the U.S. has a powerful voice in NATO’s priorities and strategies, contributing directly to the collective security of NATO’s 31 member nations. As Sweden’s accession process moves forward, bringing the Alliance to 32 nations, NATO remains the cornerstone for collective defense in a security environment that is increasingly volatile, with challenges emerging from various strategic directions.
NATO’s mission as a defensive Alliance has evolved since its inception. Historically, it has always been responsible for ensuring the collective defense of its member states. However, recent global events, such as Russia’s aggressive foreign policy and war against Ukraine, have emphasized NATO’s readiness to act decisively. China’s rise, with its predatory economic policies and growing military capabilities, has also introduced new challenges to the Euro-Atlantic security landscape. Simultaneously, new forms of warfare, including cyber and hybrid threats, present continuous challenges for the Alliance.
The modern security environment is characterized by uncertainty and rapid changes. It is within this context that NATO has embarked on a series of transformations aimed at strengthening its military posture and infrastructure. Since Russia’s invasion of Ukraine in 2014, NATO has worked intensively to address military readiness and forward presence. Starting with the 2014 Readiness Action Plan (RAP) and continuing through summits in Warsaw in 2016, Brussels in 2018, and Madrid in 2022, NATO has consistently aimed to bolster its defensive posture and enhance its readiness to respond to emerging threats. Initiatives like the NATO Readiness Initiative (NRI) and the Deterrence and Defense of the Euro-Atlantic Area (DDA) are aimed at ensuring that NATO’s forces can rapidly deploy and are properly equipped to counter any threat from any direction.
Under the leadership of NATO’s military command structures, including the Supreme Allied Commander Europe (SACEUR), the Alliance has moved forward with the development of comprehensive operational plans. For the first time since the Cold War, NATO now has theater-wide war plans, providing the strategic blueprint for all member nations to contribute toward collective defense. A key aspect of these plans is the infrastructure and enablement that will support the rapid movement and integration of allied forces. For NATO, and particularly for the U.S., the development and modernization of infrastructure is key to its ability to respond quickly to threats, whether from Russia in the east or other global actors.
The fiscal request for FY 2025 is reflective of the broader increase in NATO’s common-fund budgets, which began following the 2021 NATO Summit. At that time, NATO’s leadership agreed on the need for transformative increases in defense spending, both in terms of national defense budgets and NATO common funding, to meet the security needs outlined in the new NATO Strategic Concept. The concept recognized the emerging threats posed by state and non-state actors alike, from cyberattacks to more traditional military confrontations. This Strategic Concept, endorsed at the 2022 NATO Summit, sets forth NATO’s objectives and establishes a path for the Alliance’s transformation over the next decade.
As NATO’s security environment continues to evolve, common-fund budgets like the NSIP will be critical for addressing infrastructure shortfalls and enhancing NATO’s readiness capabilities. Much of the infrastructure investment will be directed toward supporting NATO’s force deployment and sustainment capabilities. This includes building or upgrading military bases, enhancing command and control networks, and ensuring logistics systems are capable of supporting large-scale military movements. NATO has already begun to implement these enhancements in line with the objectives outlined in the DDA framework.
At the 2014 Wales Summit, NATO members committed to a Defense Investment Pledge, which requires each member to spend at least 2% of its GDP on defense by 2024. In the subsequent years, defense spending by NATO members has steadily increased. Notably, European NATO members and Canada have increased defense spending for nine consecutive years, resulting in an additional $450 billion in cumulative defense investments since 2014. These increases are necessary to remedy existing shortfalls in NATO’s defensive capabilities and ensure that the Alliance remains ready to respond to future threats.
A key component of NATO’s strategy moving forward is its emphasis on interoperability and common standards. This extends beyond simply ensuring that NATO members’ forces can operate together in the field but also includes ensuring that infrastructure investments are coordinated across the Alliance. By integrating military planning with infrastructure development, NATO can ensure that it has the capacity to support large-scale military operations when necessary. This includes facilities for the pre-positioning of military equipment, fuel storage facilities, secure communication networks, and the construction of logistics hubs that can support the rapid movement of troops and supplies.
The NSIP plays a critical role in these efforts by funding a wide range of infrastructure projects across NATO member states. These projects include building ports, airports, and rail facilities capable of supporting NATO forces, as well as constructing military bases, ammunition depots, and command and control centers. Furthermore, the NSIP funds the construction of cross-border fuel pipelines, ensuring that NATO forces have access to the fuel necessary for sustained operations.
NATO’s efforts to enhance its infrastructure go hand-in-hand with its investments in new technologies. The modernization of NATO’s communication systems, including the development of secure and resilient networks, is crucial for ensuring that NATO forces can operate effectively in a contested environment. These networks are designed to link NATO command centers with national headquarters, providing the Alliance with the ability to coordinate operations across multiple theaters simultaneously.
While much of NATO’s focus is on infrastructure within Europe, the NSIP also supports U.S. military operations abroad. The U.S. European Command (USEUCOM), which oversees U.S. military operations in Europe, benefits directly from NSIP investments. These investments have helped upgrade existing NATO operational facilities in Europe, as well as construct new ones, supporting the U.S. military’s ability to deploy forces rapidly in response to crises. For example, NATO recently completed a $285 million storage facility in Poland, which prepositions equipment for a U.S. Armored Brigade Combat Team. This facility ensures that U.S. forces can deploy to the region quickly and be fully operational within days.
The maritime domain is another area where the NSIP has supported U.S. military operations. At Naval Station Rota in Spain, NATO has invested $190 million in port infrastructure upgrades. These upgrades have enabled the U.S. Navy to berth Aegis-equipped vessels at the port, supporting NATO’s missile defense program. NATO has also approved a $550 million investment in maritime bulk fuel infrastructure, with nearly half of this funding directed toward Rota.
In the air domain, NATO has approved over $3 billion in NSIP funding to enhance infrastructure for various airborne capabilities, including airborne early warning, alliance ground surveillance, and air-to-air refueling. These investments help address critical infrastructure shortfalls at bases used by U.S. forces in Europe.
The NSIP’s contributions to the U.S. military’s presence in Europe underscore the importance of maintaining a strong U.S. presence in the region. U.S. leadership within NATO remains essential for addressing the evolving security challenges in Europe and beyond.
