
All members of NATO's 2025 generation graduated, all 32 members spent at least 2 percent of GDP on defense, which was the alliance's target.
But there were some stars, Poland and the Baltic countries, while others like Hungary and the Czech Republic are in danger of falling behind a grade.
NATO's annual report released Thursday showed how much progress the alliance made last year on defense spending; the 2 percent of GDP target was met by all members for the first time since it was set in 2014. Last year, allies agreed to increase spending to 5 percent of GDP by 2035.
In total, the alliance spent $1.4 trillion on defense last year, thanks in part to tough pressure from Donald Trump. Not that that's stopping the US president from harshly criticizing NATO. NATO chief Mark Rutte has blamed the US administration for the spending increase.
Despite achieving the old target, there are significant differences between member states, as shown by the POLITICO report.
Grades 9-10; (teacher's favorites)
At the top of the list are the frontline states that share a border with Russia, Poland (4.3 percent) and Lithuania (4 percent). They surpassed all other allies.
Not far behind were Latvia (3.7 percent), Estonia (3.4 percent), Denmark (3.3 percent) and Norway (3.2 percent).
Grade 7-8; (Above average)
Several countries also easily reached the historic 2 percent target. They included Finland (2.9 percent), Greece (2.8 percent), the Netherlands (2.6 percent), Sweden (2.5 percent), Germany (2.4 percent) and Turkey (2.3 percent).
Class bully: There is a special status for the United States, which received a 7-8 grade for spending 3.2 percent of GDP on defense last year, but that is a drop from 3.3 percent in 2024, putting it in the small group of those in decline.
Grade 6; (those who barely passed)
They were the United Kingdom (2.3 percent), Romania (2.2 percent), North Macedonia (2.1 percent), Luxembourg (2.1 percent), Bulgaria (2.1 percent), Croatia (2.1 percent), France (2.1 percent), Slovakia (2.1 percent) and Montenegro (2.1 percent). Doing particularly well were Slovenia, Italy, Albania, Belgium, Canada, Portugal and Spain, which all spent the minimum 2 percent.
However, Luxembourg, Belgium and Slovenia saw the largest year-on-year increases in spending.
Grade 5
Hungary (2.1 percent) and the Czech Republic (2 percent) may have officially met their spending target, but a closer look at the absolute figures shows that the countries are falling behind. Budapest spent 6 percent less on defense last year compared to 2024, while Prague's spending fell by a smaller 0.3 percent.
The Czech Republic has already been criticized by allies, including the United States, for its planned spending cuts, criticism from which Hungary, led by Trump ally Viktor Orbán, has so far been exempt. But if its spending continues to shrink, that is unlikely to last.
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