March 27 (UPI) — All 32 NATO nations met or exceeded the alliance’s target for defense spending last year, Secretary-General Mark Rutte said, as Canada and several ally nations increased their investment in defense amid war in Europe and the Middle East.
“We see clearly that our world is constantly changing. And we are adapting to ensure we remain prepared,” he said during a press conference in Brussels, as he released the alliance’s 2025 Annual Report.
“The threat picture across 2025 made clear that we need to do more. And throughout the year, NATO continued to come together to ensure that we are ready and able to respond to any threat, across all domains, both now and in the future.”
The defensive military alliance has called on member states to invest at least 2% of their gross domestic product in defense since at least 2006, with allies in 2014 pledging that those below the guideline would move toward it within a decade — though few nations did so for years.
Amid what he described as a more dangerous security environment — including Russia’s war against Ukraine, the Kremlin’s support from China, Iran, North Korea and Belarus, as well as the broader instability centered on Iran — countries are stepping up, he said, calling 2025 “a landmark year for NATO.”
Amid the protracted war in Europe and uncertainty about the United States’ cooperation with the alliance, defense ministers last year made a commitment to investing 5% of GDP annually in core defense requirements by 2035.
Among nations Rutte highlighted for reaching the 2% benchmark was Canada, which, under the Liberal government of Prime Minister Mark Carney, has sharply increased its defense spending as its once iron-clad relationship with the United States has frayed under the weight of U.S. President Donald Trump’s incendiary rhetoric, threats of annexation and tariffs.
In the last 10 months of the Carney government, Canada has spent more than $23.8 billion on defense and security, pushing it over the 2% threshold for the first time since the end of the Cold War — and well ahead of the 2032 pledge made by former Defense Minister Bill Blair in 2024.
“As a result of our efforts, this morning, NATO confirmed that Canada has achieved its 2% defense expenditure target — half a decade ahead of the original schedule,” Carney said during a press conference held Thursday aboard a Royal Canadian navy vessel in Halifax Harbor.
“Canadians are responding to our renewed commitment and call to serve.”
The Liberal leader described the 2% target as “the foundation” for further investment in the country’s defense expenditure, as he announced a further $2.1 billion defense package for Atlantic Canada.
“Over the past 11 months, one of our government’s key priorities has been to reinvest in rebuilding and rearming the [Canadian Armed Forces] to provide you with the support you need to achieve mission success,” he said.
“We will continue our efforts with the same speed and determination that we have shown from the very beginning.”
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