- Allies whose current proportion of GDP spent on defence is below this level will: halt any decline; aim to increase defence expenditure in real terms as GDP grows; and aim to move towards the 2% guideline within a decade with a view to meeting their NATO Capability Targets and filling NATO's capability shortfalls.
While the 2% of GDP guideline alone is no guarantee that money will be spent in the most effective and efficient way to acquire and deploy modern capabilities, it remains an important indicator of the political resolve of individual Allies to contribute to NATO’s common defence efforts.
The Defence Investment Pledge endorsed in 2014 called for Allies to meet the 2% of GDP guideline for defence spending and the 20% of annual defence expenditure guideline on major new equipment by 2024...