NATO Secretary General Mark Rutte has set out a significant increase in defence spending and a strengthened deterrence posture in the Alliance 2025 Annual Report.
The report outlines a shift in response to what Rutte described as a more dangerous and complex security environment, stating that “Russia remains the most significant and direct threat to our security and to peace and stability in the Euro-Atlantic area.”
He said the Alliance has taken “decisive action” over the past year, adding that “we took big decisions… to defend the Alliance, protect our way of life, and keep one billion people safe on both sides of the Atlantic.”
A central element of the report is a new defence spending framework agreed at the 2025 NATO Summit in The Hague, where Allies committed to investing 5% of GDP on defence and related areas by 2035. This includes 3.5% on core defence and 1.5% on broader security and resilience measures.
Rutte said the plan is intended to rebalance contributions across the Alliance, noting that “European Allies and Canada are doing more and investing more,” with defence spending more than doubling in real terms since 2014.
In 2025 alone, European Allies and Canada spent a combined USD 574 billion on defence, a 20% real-term increase compared to the previous year. Total NATO defence expenditure is estimated to have exceeded USD 1.4 trillion.
The report also highlights ongoing efforts to strengthen deterrence, including new initiatives such as Baltic Sentry and Eastern Sentry, launched in response to increased Russian activity including airspace violations, sabotage and cyber operations.
Rutte said NATO’s response has been “swift, clear and decisive,” with increased force readiness across land, sea and air intended to reinforce deterrence along the eastern flank.
Support for Ukraine remains a central focus, with NATO continuing to coordinate military assistance and training. Rutte noted that “this is essential firepower that only the United States can provide at speed and at scale,” referring to efforts to channel US equipment to Ukraine through Allied funding.
The Alliance has also expanded its command structure, including extending Joint Force Command Norfolk’s responsibilities and establishing a new Combined Air Operations Centre in Norway to strengthen operations in the High North and Arctic.
Looking ahead, Rutte said Allies must maintain momentum, warning that “there is no room for complacency and no time to waste, because the security of one billion people is at stake.”
He added that the transatlantic relationship remains central to NATO’s future, stating that “North America and Europe have always been stronger together in NATO and that is how we will continue to stay safe in a more dangerous world.”
