Impacts of the NATO 5% Military Spending Decision on the Economies of European NATO Member States

Michael Brzoska

MPRA Paper from University Library of Munich, Germany

Abstract: This discussion paper analyses the consequences of the NATO ‘5% decision’ adopted at the Hague summit in 2025, when all NATO members, excepting Spain, consented to raise military spending in a broad sense to at least 5% of GDP by 2035. The analysis focuses on the fiscal, economic, industrial and environmental impacts for European NATO members, while also comparing them with the United States.

Keywords: H56; H60 (search for similar items in EconPapers)
JEL-codes: H56 H60 (search for similar items in EconPapers)
Date: 2026-03-09, Revised 2026-04-25
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:128863

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