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As NATO member countries announce higher targets for defense spending to reach 5% of GDP by 2035, further EU incentives and more jointly funded initiatives may prove necessary. Security concerns often collide with economic constraints, as defense-spending goals are challenged by political realities, budget constraints and the significant rise in government debt levels in recent years.
We revisit our October 2024 report on global defense spending to account for how President Trump’s second White House term has shifted the landscape and ushered in different priorities from those of President Biden. As with our earlier report, our goal is to address the outlook for defense spending, provide insight into Western allies’ spending, and assess the players in this evolving landscape.
https://www.citigroup.com/global/insights/money-and-might-2-0-balancing-choices
