UK and NATO allies agree to boost spending on defence and related areas to 5% of GDP by 2035
The UK and its NATO allies have agreed to increase spending on defence and related areas to 5% of GDP by 2035, two diplomatic sources with knowledge of the deal have told Sky News.
Ambassadors of all 32 alliance member states signed off on the new spending pledge ahead of a major summit of leaders, including Donald Trump, this week, they said.
The boost - up from a current goal of 2% of GDP - is as much about keeping the US president onside as it is about responding to what is regarded by the allies as a growing threat from Vladimir Putin and the challenge posed by China.
The target will be formally rubber stamped when the heads of state and government meet in The Hague on Tuesday and Wednesday.
The ambitious spending goal - secured following a huge amount of persuasion by Mark Rutte, the NATO secretary general - is broken down into 3.5% of GDP spent on pure defence and 1.5% of GDP spence on related areas, which can include infrastructure and cyber security.
Spain had been the last to agree.
The UK had also been slow to sign up but is understood to have been pushing for the 2035 timeframe, which would mean it is pushed beyond the next parliament.
Sir Keir Starmer has said he has an ambition to increase UK defence spending to 3% of GDP from 2.3% by 2034.
The new 5% spending goal is the kind of level of defence spending invested by NATO allies during the Cold War.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
5 minutes ago
- Yahoo
Pope Leo XIV makes a strong appeal for peace during his Sunday Angelus prayer
Pope Leo XIV made a strong appeal for peace during his Sunday Angelus prayer in St. Peter's square, calling for international diplomacy to 'silence the weapons.'
The Hill
11 minutes ago
- The Hill
Hundreds protest in The Hague against NATO, days before the Dutch city hosts alliance summit
THE HAGUE, Netherlands (AP) — Hundreds of people protested Sunday against NATO and military spending and against a possible conflict with Iran, two days before a summit of the alliance in The Hague that is seeking to increase allies' defense budgets. 'Let's invest in peace and sustainable energy,' Belgian politician Jos d'Haese told the crowd at a park not far from the summit venue. Although billed as a demonstration against NATO and the war in Gaza, protesters were joined by Iranians who held up banners saying 'No Iran War,' the day after the United States launched attacks against three of Iran's nuclear sites. 'We are opposed to war. People want to live a peaceful life,' said 74-year-old Hossein Hamadani, an Iranian who lives in the Netherlands. Look at the environment. 'Things are not good. So why do we spend money on war?' he added. The Netherlands is hosting the annual meeting of the 32-nation alliance starting Tuesday, with leaders scheduled to meet Wednesday. The heads of government want to hammer out an agreement on a hike in defense spending demanded by U.S. President Donald Trump. The deal appeared largely done last week, until Spain's Prime Minister Pedro Sánchez wrote to NATO Secretary General Mark Rutte that committing Madrid to spending 5% of its gross domestic product on defense 'would not only be unreasonable, but also counterproductive.' U.S. allies have ramped up defense spending since Russian President Vladimir Putin ordered a full-scale invasion of Ukraine more than three years ago, but almost a third of them still don't meet NATO's current target of at least 2% of their gross domestic product. The summit is being protected by the biggest ever Dutch security operation, code named 'Orange Shield,' involving thousands of police and military personnel, drones, no-fly zones and cybersecurity experts. ___ Associated Press writer Molly Quell in The Hague contributed.
Yahoo
24 minutes ago
- Yahoo
Women are getting wealthier — and they don't invest the same way as men
Women's share of retail financial assets in the US and EU is set to reach between 40% to 45% by 2030. Factors like declining marriage rates and higher earnings have played a role in the trend. Commentators say women invest more cautiously than men, focusing on goals and values. Women are becoming richer, and they're changing the face of wealth. According to a report by McKinsey published last month, women control about a third of all retail financial assets in the US and the European Union. By 2030, that proportion is expected to rise to between 40% to 45%, wrote Cristina Catania, global co-convener and European lead for the risk and resilience practice, and Jill Zucker, senior partner and co-leader of McKinsey's global growth transformation service line. The report is based on a survey of about 13,000 American and European investors, nearly half of whom were female financial decision makers. It found that between 2018 and 2023, global wealth rose by 43%, but jumped by 51% for women. Women's expanding control of assets is being driven by a combination of factors, including a continuing decline in marriage rates, the ongoing boost in women's average earnings, demographic trends like longer life expectancies, and a broad shift in attitudes about women managing their own finances. As women become wealthier through investing, it's becoming clearer that they don't approach it the same way as men. "Women are much more risk-aware," Anna-Sophie Hartvigsen, cofounder of financial education and investment platform Female Invest, told Business Insider. "I would like to call it much more realistic in their own ability to invest." She said women are less likely than men to invest emotionally. "On average, men trade a lot more often than women because they believe they can beat the market or they read something in the news, and they get pumped up or afraid, and then they invest based on that," Hartvigsen said. Female investors, in her view, tend to be more calm, more realistic, and better at assessing risk. However, Katie Geery, an advisor at Rise Private Wealth Management, says being more cautious can also hold women back by leading them to miss out on opportunities to build wealth. "It is important to work with a trusted financial advisor who understands your risk tolerance and can walk you through making well-educated investment decisions based on your long-term goals," she told BI. The aims of investing also sometimes differ between men and women. "Women prefer to invest toward achieving specific goals rather than chasing the highest returns," said Avanti Shetye, financial planner at Wealthwyzr. Geery said female investors tend to be more focused on philanthropy and gifting. They often consider their values when buying stock and want their purchases to help make a better impact on the world. "Women often seek financial advisors who are empathetic and take the time to get to know them on a more personal level to gain a deeper understanding of their goals and values," she said. On Female Invest, Hartvigsen said the principles its members care about the most include climate, especially a firm's carbon footprint, and diversity in leadership, in terms of a board having a good gender balance. For Shetye, it's important to start investing early. "Women tend to be primary caregivers for children or aging parents and often take unpaid time off," she said. "Not only that, women statistically live longer than men, which implies that women would need to invest as much as they can as early as possible so that their portfolios last them through retirement." Hartvigsen said long-term financial planning is vital: "When you do that, it doesn't matter what happens today." Both agree that this plan should be grounded in expert advice. "Working with a financial planner whose planning process is rooted in financial education can help provide comfort and security to stay consistent even in the roughest of markets," Shetye said. But she also believes that practice is more important than perfection. "You are never going to know everything there is to know about investing," Shetye said. "The key is consistency, and time will do the heavy lifting." Hartvigsen advises her clients to invest monthly on the same day and to diversify their investments. "If you do that, historically, it has been near impossible not to make money in the long run." Read the original article on Business Insider 登入存取你的投資組合
