User:Rasmih/NATO

NATO Defense Expenditure Budget
The increase in the number of NATO members over the years hasn’t been sustained by an increase in the defense expenditures. Being concerned about the decreasing defense budgets and aiming to improve financial equity commitments and boost the effectiveness of financial expenditure, NATO members met at the 2014 Wales Summit to establish the Defense Investment Pledge. Members considered it necessary to contribute at least 2% of their Gross Domestic Product (GDP) to defense and 20% of their defense budget to major equipment which includes allocations to defense research and development by 2024.

The implementation of the Defense Investment Pledge is hindered by the lack of legal binding obligation by the members, European Union fiscal laws, member states’ domestic public expenditure priorities, and political willingness. In 2021, 8 member states achieved the goal of 2% GDP contribution to defense spending. In 2020, 18 NATO members were able to reach the target of 20% contribution to major equipment. The improvements in the compliance with the Wales recommendations are facilitated by the increasing risk to the security of the members posed by the Russian Federation.