
Trying to satisfy Trump, NATO is running into difficulties
In any case, his influence is certain to loom over the gathering.
Advertisement
It has already driven an effort by NATO Secretary-General Mark Rutte to increase military spending by each of the alliance's 32 members to meet a figure suggested by Trump. He has demanded it be raised to 5 percent of each country's gross domestic product, up from the current level of 2 percent. Rutte has proposed widening the definition of military spending to help meet that objective.
The new benchmark would include 3.5 percent of GDP on core military spending — weapons, capabilities, troops — and the rest on what NATO calls 'defense and security-related investment, including in infrastructure and resilience.'
In the weeks since Rutte's idea gained steam, its details, and shortcomings, have become clearer, according to officials and experts. The timeline to increase spending may be different for everyone, and officials are confused about the requirements. Even if countries do allocate the sums, European and even American defense industries may not be able to absorb the money or deliver in a timely fashion.
Advertisement
And while NATO countries generally agree it is past time to spend more on security in Europe, where officials believe a militarized Russia might be tempted to test the alliance within years, some nations already struggle to reach the existing target on military spending. They are unlikely to meet Trump's demand soon, if ever.
The discussion about Rutte's proposal, experts said, has devolved into a debate over spending billions of dollars to fund an ever-widening range of priorities.
'It is largely a shell game,' said Jeremy Shapiro, a former State Department official and now research director of the European Council on Foreign Relations. 'There is some reality there, because defense spending is increasing across Europe, but more because of Vladimir Putin than Donald Trump.'
Trump first demanded the 5 percent figure two weeks before his inauguration, although his ambassador to NATO, Matt Whitaker, insisted recently that the United States was not 'driving the timeline' for allies to spend more on defense.
'The threats are driving the timeline,' he said. 'Europe keeps telling us that Russia is their biggest threat, and we agree, in the Euro-Atlantic it is. And so we need to make sure everybody's investing.'
Initially, Trump's ambitions seemed both abstract and implausible: Only 23 NATO members were meeting their spending goals by the end of last year. But Rutte's proposal allows for some spending on what NATO calls 'military-adjacent' projects. In practical terms, that could include investments in advanced technology; rebuilding roads, bridges, and other infrastructure; civic defense; education; improved health services; and aid to Ukraine.
Advertisement
In effect, the Trump benchmark 'is both real and not real,' said Nathalie Tocci, director of Italy's Institute of International Affairs. 'The real thing is 3.5 percent, which has nothing to do with Trump and everything to do with NATO's getting what it judges it needs,' she said.
'The unreal part is the 1.5 percent, the PR move for Trump,' she said. 'Of course infrastructure is important, and diplomacy and education, so lump it all together for Trump. And if the magic figure of 5 percent ensures benign indifference rather than malign hostility, that's all to the good.'
The proposal may have helped Rutte balance the president's desires with those of European leaders, but it has also created complications. Defense ministers meeting at NATO headquarters in Brussels this month appeared confused over how the money should be spent, and how soon, and over whether aid to Ukraine could count.
'We have to find a realistic compromise between what is necessary and what is possible, really, to spend,' said Germany's defense minister, Boris Pistorius.
Luxembourg's defense minister, Yuriko Backes, was more blunt. 'It will be the capabilities that will keep us safe, not percentages,' she said. 'This is what should be driving our investments, not the other way around.'
Luxembourg will reach the current spending threshold — which was set in 2014 to be accomplished in a decade — only this year.
Allies are debating how to count the aid to Ukraine. The current plan is to consider it core military spending. But some of the countries nearest to Russia's borders do not want to dilute their domestic defense and want aid to Ukraine categorized as 'related investments.'
Advertisement
There is also uncertainty about when allies would be expected to meet the higher spending threshold.
Rutte initially proposed 2032, but countries on NATO's eastern flank want it to happen sooner. NATO intelligence suggests that, without a credible military deterrent, Russia could mount an effective offensive against the alliance in five years after the Ukraine war ends.
'We don't have time even for seven years,' Defense Minister Hanno Pevkur of Estonia said recently. 'We have to show that we have everything we need to defend our countries.'
This article originally appeared in
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
27 minutes ago
- Yahoo
U.S. Soccer Star Dishes On 'Weird' Oval Office Moment With Donald Trump
U.S. Men's National Soccer Team star Timothy Weah has opened up about what he described as the 'weird' experience of standing behind Donald Trump in the Oval Office while the president fielded questions on the Iran-Israel war and attacked the idea of transgender women competing in women's sports. Weah was at the White House with his Juventus teammates on Wednesday as part of a promotional event for the FIFA Club World Cup, ahead of the Italian side's 5-0 victory over the United Arab Emirates' Al-Ain FC. Advertisement Trump invited questions from reporters about the game and the 2026 FIFA World Cup, which the U.S. will host alongside Mexico and Canada. But the Juventus players stood uncomfortably behind POTUS as he instead answered queries about the more pressing political questions of the day. Weah, the son of former Liberian soccer star-turned-former president George Weah, later told reporters that the players had been made to attend the event. 'They told us that we have to go and I had no choice but to go,' he explained, reported The Athletic. 'I was caught by surprise, honestly. It was a bit weird,' he added. 'When he started talking about the politics with Iran and everything, it's kind of like, I just want to play football, man.' Related...


Bloomberg
36 minutes ago
- Bloomberg
Bassiri Tabrizi: Promising To See Diplomacy Back on Table
President Trump says he is putting off US action on Iran, for now. The White House says he'll decide within two weeks whether to attack, adding that his goal remains halting uranium enrichment, and he remains open to diplomacy if possible. Gulf leaders are assessing the possibility of the Islamic Republic's clerical regime falling as an impact of the war between Israel and Iran. Aniseh Bassiri Tabrizi, Senior Analyst at Control Risks told Bloomberg's Horizons Middle East and Africa anchor Joumanna Bercetche on the next steps ahead. (Source: Bloomberg)
Yahoo
36 minutes ago
- Yahoo
Investors in Master Drilling Group (JSE:MDI) have seen splendid returns of 212% over the past five years
The most you can lose on any stock (assuming you don't use leverage) is 100% of your money. But when you pick a company that is really flourishing, you can make more than 100%. One great example is Master Drilling Group Limited (JSE:MDI) which saw its share price drive 170% higher over five years. On top of that, the share price is up 20% in about a quarter. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. One imperfect but simple way to consider how the market perception of a company has shifted is to compare the change in the earnings per share (EPS) with the share price movement. During five years of share price growth, Master Drilling Group achieved compound earnings per share (EPS) growth of 2.7% per year. We do note that extraordinary items have impacted its earnings history. This EPS growth is lower than the 22% average annual increase in the share price. So it's fair to assume the market has a higher opinion of the business than it did five years ago. And that's hardly shocking given the track record of growth. The company's earnings per share (over time) is depicted in the image below (click to see the exact numbers). Dive deeper into Master Drilling Group's key metrics by checking this interactive graph of Master Drilling Group's earnings, revenue and cash flow. It is important to consider the total shareholder return, as well as the share price return, for any given stock. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. As it happens, Master Drilling Group's TSR for the last 5 years was 212%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. It's nice to see that Master Drilling Group shareholders have received a total shareholder return of 36% over the last year. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 26% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Even so, be aware that Master Drilling Group is showing 2 warning signs in our investment analysis , you should know about... If you are like me, then you will not want to miss this free list of undervalued small caps that insiders are buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on South African exchanges. — Investing narratives with Fair Values Vita Life Sciences Set for a 12.72% Revenue Growth While Tackling Operational Challenges By Robbo – Community Contributor Fair Value Estimated: A$2.42 · 0.1% Overvalued Vossloh rides a €500 billion wave to boost growth and earnings in the next decade By Chris1 – Community Contributor Fair Value Estimated: €78.41 · 0.1% Overvalued Intuitive Surgical Will Transform Healthcare with 12% Revenue Growth By Unike – Community Contributor Fair Value Estimated: $325.55 · 0.6% Undervalued View more featured narratives — Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.