NATO's New 5% Target For Defense A Win for Trump; Carney Turns To Critical Minerals

NATO's 32 member states agreed to increase defense spending to 5% of GDP by 2035, representing a significant increase from the long-standing 2% benchmark.

The new target is the most ambitious in the alliance's 76-year-old history and a major political win for U.S. President Donald Trump, who had long criticized European allies for underfunding their militaries.

"Our investments will ensure we have the forces, capabilities, resources, infrastructure, warfighting readiness, and resilience needed to deter and defend in line with our three core tasks of deterrence and defence, crisis prevention and management, and cooperative security," the press release stated.

The agreement includes a 3.5% floor for core defense spending, encompassing troops, weapons, and ammunition, and allows up to 1.5% for related areas, such as infrastructure, cybersecurity, and civilian preparedness.

Members must follow credible annual progress plans, ...