The five-paragraph statement outlined that the new spending target will be split between two key categories: 3.5% for core defense and 1.5% for related areas, including critical infrastructure, networks, and defense industrial capabilities.

The plan will undergo a review in 2029, taking into account the strategic environment and revised capability targets, the document added.

United States (US) President Donald Trump hailed the agreement at a press conference after the summit, asserting that the US had long carried more than its fair share of the alliance's defense burden.

However, he singled out Spain, criticising it as the only country refusing to meet its full commitment. Trump said the US is negotiating a trade deal with Spain and warned that the country could be made to "pay twice as much" through trade measures.

Spain has agreed with NATO to limit its military spending to 2.1% of GDP, Spanish Prime Minister Pedro Sanchez announced on Sunday, ahead of the NATO summit. In his Sunday statement, Sanchez warned that "rushing toward 5%" would lead to rising prices and public spending, and reduce investment in key sectors such as education and digital development.

Calling the 5% target "disproportionate and unnecessary" for Spain, Sanchez emphasised that Spain is "one of the five NATO countries with the most troops deployed worldwide," Sanchez said.

--Reuters--