NATO says Europe and Canada lifted defense spending 20% in 2025

NATO says European allies and Canada increased defense spending by 20% in 2025 compared with 2024, a jump the alliance presented as evidence of a broader shift in military readiness and burden-sharing. NATO Secretary General Mark Rutte presented the 2025 annual report in Brussels on March 26, 2026. The report said the increase came after allies agreed at the 2025 summit in The Hague to move toward defense investment equal to 5% of gross domestic product.

What happened

According to NATO, the new figures show a major rise in defense spending by European allies and Canada. The alliance also said that, for the first time, all allies reported defense expenditure at or above NATO's long-standing 2% of GDP target first set in 2014. Rutte presented that as a response to a changed security environment and as proof that NATO members had started taking more responsibility for their own security.

NATO tied the higher spending to several priorities from 2025. Rutte pointed to Baltic Sentry, created to guard against potential threats to undersea infrastructure, and Eastern Sentry, which the alliance said strengthened deterrence along NATO's eastern flank. He also stressed that allied support for Ukraine remained important in 2025 and beyond. NATO highlighted JATEC, its joint center with Ukraine, and the Prioritised Ukraine Requirements List, which it said helped provide billions of euros worth of American military hardware paid for by allies and partners.

The Japan Times reported the development on April 8, 2026, framing it as a sharp year-on-year increase in European and Canadian defense outlays.

Why this matters

For foreigners in Japan, this is relevant less as a Europe-only budget story and more as a sign that defense policy across NATO is shifting quickly. The report shows that governments are putting more money into deterrence, infrastructure protection and support for Ukraine while moving beyond the older 2% benchmark.

For Japan, the significance is mainly international context. This announcement does not itself describe a new Japanese policy, but it does show a wider trend in how allied countries are being judged on defense spending and readiness. That broader shift matters to foreign residents, businesses and policy watchers in Japan because it helps explain why security debates abroad are becoming more urgent and more closely tied to concrete spending targets.

Sources

• The Japan Times: NATO says Europe and Canada spent 20% more on defense in 2025
• NATO: Secretary General's Annual Report shows significant increase in defence investment from Europe and Canada