NATO member state Latvia ranks first in military expenditure among allies

In a significant move, the people of Latvia are advocating for a declaration from the Hague summit on June 25, urging NATO member states to commit to allocating at least 5% of their GDP to defense and security by 2035.

Currently, Latvia is one of the top three NATO countries in military spending, accounting for 3.73% of its GDP. This is a notable increase from a year ago, where more than a dozen countries were lagging behind Latvia in military spending.

Neighbouring countries, such as Lithuania and Estonia, also contribute significantly to NATO's defense efforts. Lithuania is the second-highest NATO spender among the Baltic countries, with 4% of its GDP on military spending, while Estonia ranks fourth, with 3.38% of its GDP.

Poland, another key NATO ally, is ahead of Latvia in military spending, with 4.48% of its GDP dedicated to defense.

The United States, a cornerstone of NATO, covers more than half (60.2%) of the total NATO defense budget. With a contribution of $845 billion, the US will continue to shoulder the largest share of the budget.

The increase in European contributions to NATO's defense budget is evident. From $482 billion in 2024, European contributions are set to rise to $559 billion in 2025. This growth reflects a collective commitment by NATO members to strengthen their defense capabilities.

However, no NATO member countries have yet made a binding commitment to spend at least 5% of their GDP on defense and security by 2035. At the June 2025 Hague Summit, NATO members agreed to increase spending to at least 3.5% of GDP by 2032, plus an additional 1.5% for defense-relevant infrastructure, totalling 5%. This remains a collective aspirational goal rather than a firm, individual country pledge.

The total NATO defense budget for 2025 is projected to be $1.4 trillion, marking a significant rise from the current expenditures, which are approaching $1.4 trillion.

The military spending of Latvia and its Baltic neighbours is often praised within NATO. The Latvian Ministry of Defense has announced "historic achievements" in military spending, highlighting the country's commitment to the collective security of NATO.

It is worth noting that Iceland does not have its own armed forces.

The commitment and dedication of Latvia and other Baltic countries to NATO's defense efforts serve as an example within the alliance. As the world continues to grapple with geopolitical challenges, the importance of collective security and defense spending cannot be overstated.