Sign up for our daily briefing
Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.
Stay on top of the latest market trends
Subscribe to Axios Markets for the latest market trends and economic insights. Sign up for free.
Sports news worthy of your time
Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.
Tech news worthy of your time
Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.
Get the inside stories
Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Catch up on coronavirus stories and special reports, curated by Mike Allen everyday
Want a daily digest of the top Denver news?
Get a daily digest of the most important stories affecting your hometown with Axios Denver
Want a daily digest of the top Des Moines news?
Get a daily digest of the most important stories affecting your hometown with Axios Des Moines
Want a daily digest of the top Twin Cities news?
Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities
Want a daily digest of the top Tampa Bay news?
Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay
Want a daily digest of the top Charlotte news?
Get a daily digest of the most important stories affecting your hometown with Axios Charlotte
The issue
NATO countries are supposed to spend 2% of their GDP on defense.
The facts
The NATO agreement to have member countries fund their own military with 2% of GDP is in place so that each country can defend itself without relying too much on other members — but of 28 NATO members, only five meet this requirement.
Romania pledged an increase in defense spending that is expected to bring it above 2%. Poland, which already meets the 2% line, pledged in October to increase the country's defense spending to at least 2.5% of GDP. NATO expects Latvia to meet the threshold by next year. Denmark expects to increase its spending to 1.3% of its GDP by 2023. Hungary expects to meet the 2% threshold by 2026. Canada is set to increase its defense budget to 1.4% by 2025. Slovenia said this year it would start increasing defense spending for the first time since 2010.
Why it matters
Donald Trump has criticized NATO as being "obsolete," though since becoming president he's softened his tone. Defense Secretary Mattis on his first trip to Europe warned NATO countries to meet their defense spending goals or the U.S. might "moderate its commitment" to the alliance.