Story perspectives

Allies Add $258B; Germany Doubles Budget to Hit 5%

7/7/2026

Summary

Story summary

U.S. Defense Secretary Pete Hegseth announced a review linking NATO dues to the 5% GDP defense goal.
NATO Secretary-General Mark Rutte convened a summit in Ankara urging 5% defense-spending plans.
European allies and Canada will add $258 billion in defense in 2025-2026.
German Chancellor Friedrich Merz pledged to double Germany’s defense budget to reach 5% and a €110 billion budget, noting that the European Stability Mechanism warned debt financing raises a fiscal question.

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Story summary

U.S. Defense Secretary Pete Hegseth announced a review linking NATO dues to the 5% GDP defense goal.
NATO Secretary-General Mark Rutte convened a summit in Ankara urging 5% defense-spending plans.
European allies and Canada will add $258 billion in defense in 2025-2026.
German Chancellor Friedrich Merz pledged to double Germany’s defense budget to reach 5% and a €110 billion budget, noting that the European Stability Mechanism warned debt financing raises a fiscal question.