Selim Ibraimi- NATO Secretary General Mark Rutte hosted a summit of Baltic Sea states last week. At the meeting in Helsinki, Secretary Rutte announced the launch of a new NATO military exercise to strengthen critical infrastructure. “Baltic Sentry” is NATO’s latest initiative to protect the Nordic and Baltic states from Russian attacks. According to NATO, this military exercise will increase NATO’s military presence in the Baltic Sea. It will also improve the ability of alliance member states in the event of a major conflict with Russia.
In this context, European member states of the alliance have increasingly called for an increase in the budget. They propose raising the budget to 5% of GDP on defense. Some alliance countries such as Poland have spent more than 3%, promising to reach 5%. Germany has expressed reservations, but the Baltic states have pledged that they can reach 5%.
In this regard, Rutte told EU lawmakers that Europe must increase its defense spending. “We are secure now, but we will not be secure in the next five years,” he said. He said that NATO countries need to spend 3.6-3.7% of their GDP on defense against potential threats. Various analysts say that the proposal of some European countries is difficult to achieve. They find the American proposal of up to 5% even more challenging. It will require many sacrifices from European countries. This challenge is related to military spending and has consequences in lowering the economic standard. At the NATO Summit in The Hague this June, member states will reach an agreement. This agreement will only be in principle. This agreement will involve military spending of up to 3%. They will consider future threats. Member states fear threats from the administration of US President Donald Trump. They will be forced to agree on spending. There also must be a supplementary plan if the US withdraws from NATO.
But, according to estimates in Washington, the likelihood of the US leaving the alliance is very small. The disputes between the US and European countries are efforts to ensure defense spending reaches at least 3%. According to NATO calculations, the combined spending of member states amounts to 1.474 trillion dollars. Among that, 968 billion dollars come from the US. The remaining 507 billion dollars come from the alliance’s member states.
NATO has announced that the overall average defense spending is around 2.71% of GDP. Meanwhile, in the Balkans, things are different. According to the Balkan Defense Monitor (BDM), Serbia is not a NATO member. However, it still has the highest defense spending as a share of GDP with 2.0%. No NATO member state in the region has reached the 2% GDP threshold for defense spending in 2023. Albania and North Macedonia had initially planned their 2023 budgets. They aimed to reach the 2% of GDP threshold. However, actual spending in both countries was below 2% of their GDP. Bosnia and Herzegovina has the lowest military spending in the Balkans, keeping it below 1% of GDP. As for North Macedonia, the defense budget has increased significantly. This increase has been in the field of modernization since the country joined NATO. The 2024 budget was an increase of 38% compared to the previous year.
North Macedonia’s defense budget for 2024 was forecast at 263 million dollars. This amounts to 2.22% of its GDP, according to the latest NATO report on defense spending. How are NATO countries’ military spending calculated and reported? The Ministry of Defense of each NATO member state reports actual and projected defense spending. Reports by other organizations that cover economic ups and downs differ. However, governments must report concrete data on defense. This includes spending on military retirees. So the data to NATO must be accurate and comprehensive.
Finally, the discussions in the US and the EU about spending are happening because the US is tired. It carries a huge burden in the field of security on the backs of American taxpayers. Washington is demanding that Europeans themselves pay more for security if they want to be better protected. International affairs have changed significantly since the Cold War. NATO has expanded eastwards and into the Balkans. Since 2014, the challenges with the Russian invasion of Ukraine have made it inevitable. States must prioritize security as a key component. Some governments feel uncertainty due to additional plans for a European army. They are considering whether to remain neutral. This neutrality can help them avoid involvement in future conflicts. The best approach currently is to focus on defense spending. Innovation is also crucial to prepare for the unforeseen wars of tomorrow.
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