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

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  • Brzoska, Michael

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.

Suggested Citation

  • Brzoska, Michael, 2026. "Impacts of the NATO 5% Military Spending Decision on the Economies of European NATO Member States," MPRA Paper 128863, University Library of Munich, Germany, revised 25 Apr 2026.
    • Handle: RePEc:pra:mprapa:128863
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    References listed on IDEAS

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    Keywords

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    JEL classification:

    • H56 - Public Economics - - National Government Expenditures and Related Policies - - - National Security and War
    • H60 - Public Economics - - National Budget, Deficit, and Debt - - - General

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