Latest news with #defenceSpending
Reuters
6 hours ago
- Business
- Reuters
Latvian president believes NATO will overcome obstacles, meet 5% goal
RIGA, June 20 (Reuters) - Latvia's president expressed confidence NATO would agree to a new higher defence spending target demanded by U.S. President Donald Trump, despite Spanish objections, saying the alliance had little choice given the growing threat from Russia. Spain on Thursday asked to opt out of the plan to increase members' defence spending to 5% of their gross domestic product, as requested by Trump, a move which could derail next week's NATO summit at the Hague. Any agreement to raise defence spending needs unanimous approval by the 32 member states. Latvian President Edgars Rinkevics told Reuters on Friday he understood why countries further from Russia might have difficulties convincing their voters to spend more on defence. But he said the need was pressing. 'I do hope there is the understanding in Madrid that this is a critical time for the Alliance, both when it comes to (increasing) its defence capabilities, but also to the Trans-Atlantic relationship,' he said in an interview in Riga. 'I think that they don't have much of a choice,' he added. At an estimated 1.28% of GDP, Spain had the lowest proportion of expenditure on defence in the alliance last year, according to NATO estimates. Latvia and fellow Baltic states Lithuania and Estonia are urgently ramping up their militaries, fearing that their neighbour and former overlord Russia could push on from its 2022 invasion of Ukraine to take more territory. They spent more than 3% of GDP on defence this year, and have committed to top 5% for the next few years. "We are saying that we need to spend as soon as possible now in order to avoid a worst-case scenario, spending much more later," Rinkevics said. "While Russia is stuck in Ukraine, that possibility of a direct military attack is not very high," he said. "But it may change very, very quickly ... if a development in Ukraine leads Russian leadership to believe that NATO is weak, that Ukraine is defeated, that NATO is divided".
Yahoo
a day ago
- Business
- Yahoo
Spain rejects NATO plans for 5% defence spending target
Spain is opposing NATO's plans to increase defence spending to 5% of gross domestic product (GDP), public broadcaster RTVE reported on Thursday. Spanish Prime Minister Pedro Sánchez informed NATO Secretary General Mark Rutte of his country's opposition to the new target in a letter, according to reports from RTVE and other media outlets that have seen the letter. The government in Madrid confirmed the report to dpa upon request. Sánchez wrote that an increase in defence spending to a total of 5% of GDP by 2032, as proposed, was "not only unreasonable but even counterproductive" for his country. Therefore, he said, Madrid would "not be able to commit to a specific spending target" at the NATO summit next week in The Hague. The statement from Sánchez is not surprising. At the end of May, Foreign Minister José Manuel Albares stressed during a visit from his German counterpart Johann Wadephul at a joint press conference that Spain was making greater efforts in the defence sector than ever before. The existing NATO target of 2% of GDP was "realistic," he said. Defence Minister Margarita Robles even described the NATO plans as a "big mistake." "We believe that the process cannot consist of first setting a percentage and then determining the capabilities; it must be the other way around," she said. With military expenditure of around 1.3% of GDP, Spain is among the lowest spenders on defence in the alliance. However, in April, the left-wing government announced that it wanted to achieve the 2% target this year. Originally, this was planned for 2029. Madrid intends to spend an additional €10.5 billion ($12 billion), about 50% more than previously planned.
Daily Mail
a day ago
- Business
- Daily Mail
Spain threatens to block NATO's 5% defense spending target
Spain 's government is preparing to block an agreement among NATO countries to raise defence spending to 5% of GDP just days out from a major summit, Spanish media has reported. NATO Secretary General Mark Rutte is pushing for members of the transatlantic security bloc to boost their defence spending to 5% GDP by 2032, after US President Donald Trump declared America's allies were shirking their responsibilities. The proposal stipulates that 3.5% of GDP should be earmarked for core military spending with a further 1.5% dedicated to broader security-related areas such as infrastructure. US Defence Secretary Pete Hegseth said he expected the agreement to be sealed at next week's NATO summit, set to be held in the Netherlands on June 24-25. 'We are very close, almost near consensus, on a five per cent commitment for NATO in The Hague later this month,' Hegseth said after a recent meeting with his NATO counterparts in Brussels. 'This alliance, we believe, in a matter of weeks, will be committing to five per cent... we think every country can step up.' But El Pais reported this week that Madrid is set to send a formal letter to Rutte rejecting the proposal, which must be agreed upon unanimously. For Spain, spending 5% of GDP on defence would mean boosting its annual defence budget by around €80 billion - nearly half the size of the country's entire pensions bill and a move the government is unwilling to accept. Madrid has been signalling its opposition to a mandated defence spending increase for weeks, with Defence Minister Margarita Robles declaring at a NATO Minister's meeting earlier this month: 'We think that two per cent is enough to meet the responsibilities we have committed to.' More than a decade ago, NATO stipulated that its members must spend a minimum of 2% GDP on defence. The push to increase this threshold to 5% comes amid concerns over Russia's ongoing war in Ukraine and the Trump administration's desire to reduce Europe's dependency on Washington for defence and security as Washington turns its focus to China and the Indo-Pacific. The US is by far the biggest spender on defence overall in terms - forking out a total of $967.7billion, equivalent to 3.38% of GDP. But America falls behind Poland and Estonia in percentage spend. These nations contribute 4.12% and 3.43% of their respective GDP on defence. The UK by comparison spends around $81.4billion, equivalent to 2.33% of its GDP, with Sir Keir Starmer 's government insisting it is on a 'path' to increasing this to 2.5 per cent. But no member of the alliance is close to spending 5% of GDP on defence at present, and some nations - including Spain , Canada , Italy and Portugal - are still lagging below the 2% threshold. Madrid is at the bottom of the pile, spending just 1.28% as of this year. Speaking earlier this month, the Spanish Defence Minister said Madrid would not veto the decision to raise the defence spending target but said that the government would only focus on meeting self-imposed targets. 'What is important is that each country is able to meet the objectives it has set itself,' she added. Now, however, El Pais claims the Spanish government will formally push back in a move that could scupper the deal. Sources told the paper that Madrid is not ruling out Europe eventually reaching the 5% target, especially if Russia's militarisation continues, but said that it was 'premature' to set an official figure now. 'Spain is not in favour, and there's a coalition of countries that share that view,' one official said. Earlier this month, NATO ministers signed off on new capability targets for the weaponry needed to deter Russia as they began finalising the 5% spending target. German Defence Minister Boris Pistorius estimated the new requirements meant Berlin would need to add 'around 50,000 to 60,000' more soldiers to its army. His Dutch counterpart Ruben Brekelmans said reaching the level requested would cost the Netherlands at least 3.5% of GDP. 'The new defence investment plan, of course, is rooted in what we need in terms of the hard capabilities,' Rutte said.
CBC
3 days ago
- Politics
- CBC
Carney greets non-G7 leaders at Alberta summit, including India's Modi, after pledging $2B in aid to Ukraine
Good morning! I'm J.P. Tasker, a reporter travelling with Prime Minister Mark Carney at the G7 summit in Kananaskis, Alta. We were just on hand to watch Mark Rutte, the NATO secretary general, greet Carney before their bilateral meeting this morning here at the picturesque resort that's playing host to this gathering of the world's most powerful democratic leaders. Rutte was clearly impressed by the Rocky Mountain landscape. 'This is amazing!' he shouted as he approached the podium where leaders pose for photographs. The beautiful scenery has been a conversation point all week among members of the foreign delegations — some say they are simply mesmerized by just how majestic it is in this part of Alberta. U.S. President Donald Trump himself yesterday seemed struck by the landscape, where massive mountains poke out of the forest. 'It's so beautiful,' he said as he greeted Carney at this same spot. Rutte isn't here for the mountains alone, of course. The former Dutch prime minister, who has a close relationship with Canada, has been urging NATO allies to step up their defence spending — to meet and exceed the long-standing target of two per cent of GDP. Carney has committed to that, saying there may be more spending to come to better prepare Canada for an increasingly dangerous world. We'll see what, if anything, he promises Rutte today on these matters. Just last week, Rutte warned NATO allies to prepare for war, given global uncertainty. 'History has taught us that to preserve peace, we must prepare for war. Wishful thinking will not keep us safe. We cannot dream away the danger. Hope is not a strategy. So NATO has to become a stronger, fairer and more lethal alliance,' he said in a speech in the U.K.
News.com.au
6 days ago
- Business
- News.com.au
‘Dangerous place': Calls to increase defence spending amid China-Taiwan tensions
Defence industry specialist Brent Clark discusses the need to increase defence spending as China and Taiwan exhibit massive tensions in the Asia Pacific region. 'The world's a fairly dangerous place,' Mr Clark told Sky News host Ed Boyd. 'Clearly, there are massive tensions in our own area from a Chinese perspective with Taiwan. 'It's quite clear that we need to have that insurance policy, so therefore expenditure on defence is the way we achieve that insurance policy.'
