In the lead-up to the NATO Summit scheduled for June 24–25 in The Hague, the United Kingdom and Germany unveiled ambitious plans to significantly boost their defence budgets. The UK also introduced its new National Security Strategy (NSS) 2025, integrating key elements from recent strategic reviews including the Strategic Defence Review (SDR), Strategic Security Review, AUKUS Review, and various Industrial and Trade Strategies.
The UK has committed to raising its defence expenditure to 5% of GDP by 2035, a notable increase that underscores its focus on strengthening national security. Meanwhile, Germany has pledged to allocate 3.5% of its GDP to defence by 2029, outlining a draft budget that proposes a rise from €95 billion ($110.3 billion) in 2025 to €162 billion in 2029. This increase is supported by a newly approved debt exemption specifically for defence spending and a €500 billion infrastructure fund.
The UK’s NSS echoes several priorities from the SDR, reaffirming a “NATO-first, not NATO-only” approach, while emphasizing the protection of critical infrastructure such as gas pipelines and fibre-optic cables. The strategy is framed around three key pillars: securing the homeland, projecting strength internationally, and enhancing sovereign and asymmetric defence capabilities. Addressing broader security concerns, the UK also highlights the threat posed by Russia and calls for more robust border controls and upstream actions to combat illegal migration.
Significant investments remain planned within the UK’s broader defence agenda, including £15 billion ($20.4 billion) for the sovereign warhead programme and £31 billion for the Dreadnought-class submarine fleet. However, further details are expected to be provided in the forthcoming Defence Industrial Strategy, which, despite an original target of late June, may face delays.
As part of the NSS rollout, the UK government announced an £86 billion investment in research and development aimed at advancing technologies critical for future economic and military competitiveness.
UK Prime Minister Keir Starmer emphasized the government’s dedication to defence funding, stating, “We are committed to spending 5% of GDP on national security. This represents a vital step in deepening our NATO commitment and bolstering the nation’s security and resilience.”
The UK anticipates that the 5% national security spending target will be divided roughly into 3.5% for core defence activities and 1.5% for resilience and security efforts, with formal agreement expected at the NATO summit.
Germany’s Defence Spending Surge
Germany’s draft budget, passed on June 24, signals a dramatic uplift in defence funding, moving from €95 billion in 2025 to €162 billion by 2029. Although this draft may not be formally approved until later in the year—potentially after the 2026 budget—it reflects a historic shift supported by the government’s special infrastructure fund and new exemptions from debt restrictions on military expenditure.
German Defence Minister Boris Pistorius, ahead of his trip to the NATO Summit, called this a “historic turning point” for Germany, acknowledging the high expectations placed on the country by NATO and its allies.
Among the notable allocations in Germany’s budget is funding for the procurement of KNDS Germany Boxer wheeled infantry fighting vehicles, intended to establish a new ‘Medium Forces’ category. This acquisition is valued at approximately €3.9 billion and includes additional related services and equipment, as reported by German outlet Hartpunkt.
