NATO Defence Expenditure Definitions and the 5% GDP Commitment by 2035 (nato.int)

• NATO's definition includes payments for armed forces, R&D, pensions, and operational costs, but excludes war damage and civil defence.
• The 2025 Hague summit set a target of 5% GDP by 2035, with 3.5% on core defence and up to 1.5% on resilience and industrial base.
• In 2025, all NATO Allies met the previous 2% GDP target, and European Allies and Canada increased spending by 20% from 2024.

"NATO provides a detailed definition of defence expenditure, encompassing payments for armed forces, R&D, pensions, and more, while excluding war damage and civil defence. At the 2025 The Hague Summit, Allies committed to investing 5% of GDP annually in defence and security by 2035, with at least 3.5% on core defence requirements. This builds on the 2014 Wales pledge of 2% of GDP, which all Allies met by 2025. The article outlines the evolution from 2% to 5%, emphasizing the need for modernization and interoperability."