NewsTrump's NATO defence demand: 'Imperial tax' sparks EU backlash

Trump's NATO defence demand: 'Imperial tax' sparks EU backlash

Donald Trump, the President-elect of the USA, has expressed a desire for NATO countries to allocate 5% of their GDP to defence spending. The Spanish newspaper "La Vanguardia" refers to this as an "imperial tax," suggesting that the move aims to boost American weaponry sales. European politicians have also responded to the proposal.

Donald Trump wants 5% of GDP defence spending in NATO
Donald Trump wants 5% of GDP defence spending in NATO
Images source: © Getty Images | 2024 Getty Images
Michał Wąsowski

Before assuming office, Donald Trump suggested that NATO member countries allocate 5% of their GDP to defence. He argued that nations with conventional military forces should dedicate 4%. In comparison, those in high-risk areas should increase their spending to 5%, emphasizing that all member states can meet this threshold.

"Imperial tax": Spanish media on Trump's proposal

European politicians and media outlets have provided commentary on the proposal. The Spanish daily "La Vanguardia" notes that during Trump's previous term, he required 2% of GDP for defence. Therefore, a 5% threshold represents a significant increase. This would mean additional expenses of almost £34 billion annually for Spain. The newspaper argues that "flooding the world with dollars is no longer sufficient," and in this way, the USA could reduce its trade deficit. At the same time, Europe's increase in expenditures would encourage buying American weaponry. The media labels Trump’s proposal as an "imperial tax."

Meanwhile, El Pais warns that European countries should avoid individual negotiations with Trump, as they might be disadvantaged. The newspaper reminds its readers that Trump does not value international agreements highly, undermining his credibility on peace negotiations with Russia.

The Spanish newspaper El País suggests that Vladimir Putin could be the primary beneficiary of Trump's position, viewing it as an endorsement of his actions in Ukraine. It also points out that Trump's rhetoric may encourage China to pursue similar Asian strategies.

How much does Europe spend on defence?

Politico reminds us that 5% of GDP is more than what any NATO member currently spends. Poland is closest to this level, reaching 4.12% of GDP in 2024, aiming for 4.7% this year. The United States, meanwhile, spent 3.4% of GDP last year. Estonia, for example, plans to allocate 3.7% of GDP this year.

Trump's proposals are causing a stir among European politicians. Some openly consider them unrealistic to implement. I don't think it will be 5%, which would be impossible for almost every nation in the world right now," commented Italy's Defence Minister Guido Crosetto. As Politico reminds us, Italy will reach a defence spending level of 2% of GDP in 2028.

The Chancellor of Germany, which is currently dealing with budgetary issues, cautiously stated that NATO countries "will strengthen defence capabilities." The UK aims for spending around 2.5% of GDP but hasn’t specified when. The Czech Prime Minister noted that a realistic goal for his country would be 3% within a few years.

Meanwhile, Sweden's Foreign Minister remarked that "there is a broad consensus that Sweden should spend more on defence." "For a long time, U.S. governments have urged European countries to increase defence spending and share more costs. We agree with this view," she emphasised.

As Politico highlights, in 2023, the United States accounted for 68% of NATO's defence spending, amounting to £754 billion. For European countries, it was 28%. The service underscores that Trump's proposal would be "extreme" for many countries' budgets to achieve, with one exception: Poland.

NATO Secretary General Mark Rutte stated he wants to persuade Donald Trump to ease the rules for European allies to purchase military equipment from the USA. Europe could buy more if it weren't for strict American export regulations, he emphasised on Thursday during a conversation with dpa.

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