Netherlands Approves 5% Defense Spending Target Amid NATO Summit Preparations

The Dutch Cabinet has agreed to increase defense and security spending to 5% of GDP by 2032, in line with NATO's proposed target. The decision may conflict with parliament, which opposed the target in a non-binding vote. The increase is expected to cost the Netherlands up to €19 billion ($22 billion). NATO leaders will adopt the target at a summit in The Hague on June 24-25, with President Trump expected to attend.

The Dutch caretaker cabinet has agreed to increase defense and security spending to 5% of gross domestic product (GDP) by 2032, aligning with the North Atlantic Treaty Organization's (NATO) proposed target. This decision comes as NATO leaders prepare to adopt the target at a summit in The Hague on June 24-25, with U.S. President Donald Trump expected to attend [1].

The cabinet's decision, which may face opposition from parliament, includes 3.5% of GDP for core defense spending and 1.5% for broader security measures. The increase is expected to cost the Netherlands up to €19 billion ($22 billion) [2].

Dutch Defense Minister Ruben Brekelmans stated that the cabinet is open to debate on the exact year and growth path to reach the target. Some countries may need flexibility with the timeline, he noted [2]. The caretaker coalition parties, VVD, BBB, and NSC, will need support from the opposition parties for the proposal, which will be debated in the Tweede Kamer, the lower house of Dutch parliament, on Tuesday [3].

The Netherlands currently spends 2% of its GDP on defense, with Brekelmans indicating that further investment is necessary given the increasing threats [2]. The increase in defense spending is expected to result in budget cuts in other sectors by the government.

President Trump has demanded that allies spend 5% of GDP on defense, threatening to pull out of the alliance if the target is not met. The new NATO spending framework aims for a combined total of 5% of GDP, with 3.5% allocated to core defense spending and 1.5% to infrastructure [1].

The Netherlands' decision may put it in conflict with parliament, which last week opposed NATO’s new target in a non-binding vote. Without majority backing from parliament, Prime Minister Dick Schoof will host the summit without a strong mandate to implement its central goal [1].

References:
[1] https://www.bloomberg.com/news/articles/2025-06-13/dutch-cabinet-approves-nato-s-5-defense-spending-target
[2] https://nltimes.nl/2025/06/13/caretaker-cabinet-backs-nato-plan-raise-defense-spending-5-gdp
[3] https://www.politico.eu/article/dutch-caretaker-sets-to-raise-defense-spending-to-3-5-percent-of-gdp/