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International media report: Rutte proposes a new formula for calculating NATO expenses to satisfy Trump’s demands

Chas Pravdy - 02 May 2025 19:17

In light of ongoing pressure from Washington and tense discussions regarding the fair distribution of commitments within NATO, NATO Secretary General Mark Rutte has proposed a new concept for financing the defense costs of member countries. According to Reuters, citing sources familiar with the details of this initiative, the proposal has the potential to change the approach to calculating annual defense expenditures to better align with the goal previously set by former U.S. President Donald Trump — 5% of GDP. Under the new model, member countries are proposed to increase their defense spending to 3.5% of GDP, and additionally allocate a further 1.5% to broader, so-called “wide costs,” which would include the defense sector as a whole. This context refers not only to military budgeting but also to investments in infrastructure, such as repairs and modernization of roads, bridges, and transportation communications, which are critically important for the quick movement of equipment and military personnel during conflicts. At the same time, there have been no official confirmations from NATO regarding the preparation of such a proposal. Sources indicate that the exact definition of “wide costs” still needs to be agreed upon. They emphasize that this concept must be coordinated among allies ahead of the Hague summit. One possible approach is that these costs could encompass not only traditional defense expenditures but also investments in the infrastructure and institutional capacity of member states. This might include funding for the modernization of roads and bridges to support operational movements of military equipment, as well as programs to increase national resilience against cyberattacks and other security challenges. Commenting on the initiative, NATO spokesperson Allison Hart told “European Truth” that the Secretary General constantly emphasizes the need to increase funding to achieve the alliance’s shared goals. She pointed out that it’s not only about individual investments in the military sphere but also supporting related sectors such as infrastructure and improving readiness for response. “Rutte is actively consulting with partners and working on concrete proposals ahead of the summit. This is an important and timely topic, especially considering the words of U.S. NATO envoy Matthew Wirtaker, who allegedly informed German diplomats that the White House may ignore this year’s Alliance summit if member countries do not commit to increasing spending,” the statement read. According to sources, this issue is particularly acute for European countries, which have had to review their defense budgets in light of the new requirements. Under Trump’s leadership, official Washington advocated that allies spend at least 5% of GDP on defense. This was a key point in Trump’s demands from NATO, which caused tensions and criticism from other countries — especially EU countries and new Alliance members. At the same time, it should be noted that in early April, Polish officials announced receiving confirmation from Donald Trump about the planned participation of the U.S. president in the 2025 summit, indicating efforts by both sides to find a compromise on this issue. As for the upcoming summit — it is expected that not only NATO member leaders will attend in The Hague, but likely also Ukrainian President Volodymyr Zelenskyy, highlighting the strategic importance of this forum for regional security. In the context of the new proposals regarding expenses and strengthening defense capabilities, discussions at the summit will be especially significant. Thus, attempts to change the approach to defense funding within NATO demonstrate allies’ efforts to find a compromise between U.S. demands and the interests of European countries seeking to maintain balance and strengthen collective security amid complex geopolitical conditions.

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