Greek Prime Minister Kyriakos Mitsotakis expressed skepticism about the feasibility of meeting U.S. President Donald Trump’s demands for increased NATO defense spending. In an interview with Finance Newso, he indicated that achieving a target of 5% of gross domestic product set forth by the U.S. leader would be a significant challenge for NATO members.
Trump’s insistence on higher contributions from NATO allies has been a consistent theme during his presidency, but Mitsotakis cast doubt on whether this ambitious figure could realistically be achieved. “I think 5% frankly, is very, very difficult,” he stated during his conversation with Finance Newso’s Silvia Amaro, which aired on “Europe Early Edition” on Friday.
The Prime Minister suggested that a more attainable ceiling might be around 3.5% for defense spending, noting that a long-term goal of 5% could be conceivable if broader security expenditures, such as critical infrastructure, were included in the calculations. “So it really depends on how we do the accounting,” he remarked.
NATO Secretary-General Mark Rutte has reportedly advocated for an increased defense spending target of 3.5% of GDP, with an additional 1.5% earmarked for broader security-related expenses.
Historically, many NATO nations have struggled to meet the existing target of 2%, a situation that has drawn Trump’s criticism. An estimate from NATO indicated that the United States had allocated approximately 3.4% of its GDP to defense in 2024, with only Poland and Estonia committing a larger share of their economies to defense efforts during the same period.
Poland has pledged to ramp up its defense budget to as high as 5% in the coming years, although other countries have remained cautious, citing concerns over managing such financial commitments. Recently, German Foreign Minister Johann Wadephul expressed support for Trump’s target, indicating that the 5% benchmark is in alignment with NATO’s objectives.
A decision regarding new defense spending targets is anticipated at the next NATO summit scheduled for late June.
During his interview, Mitsotakis acknowledged Trump’s assertion that NATO allies needed to step up their defense spending, admitting, “Donald Trump was right when in 2017 he said you’re not doing your fair share, because we didn’t. We understand now that there is no free lunch and we cannot free ride.”
Greece spent nearly 3.1% of its GDP on defense last year, according to NATO estimates, well above the 2% target, a trend that has been ongoing for several years. The country has been increasing its defense budget since 2020 in response to heightened tensions with Turkey over maritime border disputes.
Mitsotakis emphasized the necessity of Greece’s substantial spending, citing specific security concerns. He also noted ongoing advocacy for revised European rules that would facilitate greater defense expenditures, claiming that there has been progress in this regard.
The European Union has previously imposed fiscal rules limiting member states’ debt and budget deficits. Recently, however, the European Commission has moved toward loosening these fiscal constraints as part of a broader security strategy.
While discussing potential adjustments to defense spending, Mitsotakis pointed out the importance of continuing dialogues regarding the establishment of a European facility aimed at supporting defense budgets.
