US President Donald Trump holds a bilateral meeting with NATO Secretary General Mark Rutte at the World Economic Forum (WEF) in Davos, Switzerland on January 21, 2026.
Jonathan Ernst | reuters
NATO will spend hundreds of billions of dollars on defense in the coming years, its Secretary-General Mark Rutte said on Friday, hours after US President Donald Trump promised to deploy thousands of new troops to its eastern flank.
“The money is really coming,” Rutte said, speaking to reporters ahead of a NATO meeting in Helsingborg, Sweden on Friday, with allies “more and more committed.”
Last year, NATO member states agreed to increase their defense spending target from 2% to 5% of GDP, with the aim of reaching that level by 2035.
Rutte said on Friday that many of the coalition’s 32 members were on pace to meet the 5% spending commitment.
“This has literally meant hundreds of billions (of dollars) of additional defense spending over the last few years,” he told reporters.
Rutte said NATO’s newest member, Sweden – which this week announced a $4 billion defense investment – is on track to reach the 5% target by 2030.
“There’s a lot of money, but we need to spend it not only on the men and women in uniform, but also on making sure they have what they need to stop and defend, and that’s defense industrial production,” he said.
“There is intense debate going on with the defense industry, the financial sector to ensure that they do what is necessary to increase production, not to raise prices but to produce more. The good news is coming, we are making progress, but there is still a lot to be done.”
Rutte’s comments on Friday came after US President Donald Trump pledged to deploy 5,000 new troops to Poland, a week after the Pentagon reversed course. has been canceled There are plans to send 4,000 military personnel to the country bordering Ukraine.
“Based on the successful election of Karol Nawrocki, the current President of Poland, whom I am proud to support, and our relationship with him, I am pleased to announce that the United States will send an additional 5,000 troops to Poland,” Trump said on Truth Social on Thursday.
CNBC contacted the Polish government for comment on Trump’s announcement.
The Pentagon said in a statement Tuesday that Poland “has demonstrated both the capability and determination to defend itself.”
“Other NATO allies should follow suit,” it added.
In 2025, Poland will spend an estimated 4.48% of its gross domestic product (GDP) on defence, making it NATO’s largest defense spender as a percentage of its economy.
The US spent an estimated 3.22% of its GDP on defense last year, making it the sixth-biggest spender in the alliance under the same metric.
Nevertheless, in dollar value, the US remains by far the alliance’s largest spender on defence. NATO data shows the US spent an estimated $845 billion on defense last year, less than the $559 billion spent by the rest of the alliance.
NATO member states committed to increasing defense spending last year after the Trump administration pressured Europe to take greater responsibility for its own security.
Trump remains critical of NATO, and is threatening to pull the US out of the alliance over its reluctance to assist in reopening the Strait of Hormuz.
He hosted Poland’s Nawrocki at the White House in 2025, when the right-wing Nawrocki defeated a candidate representing Polish Prime Minister Donald Tusk’s centrist, pro-European party in the country’s presidential race.
US President Donald Trump welcomes Polish President Karol Nawrocki to the White House during an arrival ceremony at the South Portico in Washington, DC on September 3, 2025, during which military aircraft conduct a flyover.
Alex Wong | getty images
Asked Friday about Trump’s plan to deploy new troops to NATO’s eastern flank, Rutte said he welcomed the announcement and that alliance military commanders were working on the details.
He said, “Let’s be clear: the path we are on is a stronger Europe and a stronger NATO, while ensuring that over time we become less dependent on just one ally, as we have been for so long, which is the United States.” He said this would give Washington “the option to move on to other priorities.”
Rutte said, “European allies are spending more. This is necessary not only to equalize what we are spending with the US, but also to make sure we have what it takes to deter and defend against adversaries, including our long-term threat, Russia.” “The US will play an important role in Europe… but what you will see over time is a step-by-step process where the Europeans step in more.”
David Stubbs, chief investment strategist at Alphacore Wealth Advisory, told CNBC’s “Squawk Box Europe” on Friday that Rutte has done a “tremendous job” as NATO leader, adding that the US is still engaged in the alliance despite the Trump administration’s “sharp” rhetoric.
“For investors, European defense spending is coming – it’s going to be a megatrend over the next 10 to 15 years,” he said. “The future belongs to a strong Europe within a strong NATO.”