Nato’s Defence Spending and Membership Updates

January 9, 2025

Nato, the North Atlantic Treaty Organization, has been a very important military alliance since its formation in 1949. In light of recent geopolitical tensions, particularly following Russia’s invasion of Ukraine, discussions around defence spending among member states have intensified. US President-elect Donald Trump has urged European Nato members to increase their defence spending to 5% of their national incomes, above the current target of 2%. This call aligns with Nato Secretary-General Mark Rutte’s recent emphasis on adopting a “wartime mindset”.

What is Nato?

Nato was established in 1949 in Washington DC by 12 founding countries. It was created to counter the influence of the Soviet Union in Europe. The alliance operates on the principle of collective defence, where an attack on one member is considered an attack on all. Although Nato does not possess its own military force, it coordinates military actions among member states.

Nato Membership Overview

As of 2025, Nato comprises 32 member countries, including the original 12 founders and 20 additional nations. After the Soviet Union’s dissolution, many Eastern European countries joined. The latest additions include Finland in April 2023 and Sweden in March 2024. Both countries applied for membership in May 2022, motivated by security concerns following Russia’s aggressive actions in Ukraine.

Ukraine’s Nato Aspirations

Ukraine has expressed a desire to join Nato, but its membership has been hindered by Russian opposition. In 2008, Nato indicated that Ukraine could join in the future. Following the invasion, Ukrainian President Volodymyr Zelensky sought to expedite this process. However, Nato’s leadership has stated that membership will only be possible after the ongoing conflict concludes.

Defence Spending Requirements

Nato currently mandates that member countries allocate at least 2% of their GDP to defence. In 2024, approximately 23 countries met this benchmark, increase from just three in 2014. The US and nations bordering Russia, such as Poland and the Baltic states, are among those with the highest defence spending. The UK plans to increase its spending to 2.5% of GDP by 2025.

Military Support for Ukraine

Nato has not deployed troops to Ukraine but has recognised the invasion as threat to member security. Individual countries have provided military assistance, with the US contributing nearly €60 billion and European members supplying over €52 billion since the conflict began. This support includes anti-tank weapons, missile defence systems, and long-range missiles from various member states.

Nato’s Enhanced Defence Posture

In early 2025, Nato will conduct a military exercise named Steadfast Dart 25 in Bulgaria and Romania. This exercise aims to prepare troops for potential enemy attacks and reinforce eastern borders. Nato has also increased its readiness by raising the number of troops on high alert from 40,000 to over 300,000 and establishing eight battlegroups along its eastern flank.

Nato was founded in 1949 by 12 countries.
Finland and Sweden joined in 2023 and 2024, respectively.
Nato’s collective defence principle is known as Article 5.
Ukraine’s membership process has been delayed due to Russian opposition.
The US has provided the most military aid to Ukraine among Nato members.

Future of Nato and Defence Spending

Nato continues to adapt to the changing security landscape in Europe. The emphasis on increased defence spending reflects a broader commitment to collective security. Member nations are expected to reassess their military capabilities to respond effectively to emerging threats.

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