Netherlands decides to increase defence spending to 3.5%

The Dutch government has approved a substantial boost in defense spending as NATO encourages its members to aim for 5% of GDP.

The caretaker coalition has reached an agreement to raise defense expenditure to 3.5% of GDP, with an additional 1.5% designated for infrastructure that enhances military readiness, according to a report from public broadcaster NOS.

Defense Minister Ruben Brekelmans labeled this a “historic decision” amid escalating tensions with Russia and calls for greater European defense independence.

It’s worth noting that the ruling coalition recently fell apart, leaving a caretaker administration until elections in the autumn.

While the Netherlands has not set a timeline for achieving this target, the plan aligns with the new NATO spending framework proposed by Secretary General Mark Rutte, which aims for 5% of GDP. NOS reports that the anticipated annual cost, estimated between €16 to €19 billion, has not yet been allocated in the budget and will be a matter for a future coalition.

This proposed increase follows pressure from Trump, who has urged NATO allies to boost their defense spending or face a diminished U.S. role in the alliance.

The plan is expected to be discussed—and potentially approved—at the NATO summit in The Hague on June 24 and 25, as noted by Politico.