Trump’s 5% NATO spend target ‘very, very difficult’ to meet: Greek PM

Meeting U.S. President Donald Trump’s defense spending demands would be a tough feat for NATO members, according to Greece’s prime minister in an interview with CNBC.

Trump has consistently urged NATO nations to increase their security contribution to 5% of their gross domestic product, a target that Kyriakos Mitsotakis of Greece doubts can be achieved.

“I think 5% frankly, is very, very difficult,” Mitsotakis said in an interview with CNBC’s Silvia Amaro aired on “Europe Early Edition” Friday.

“If we’re talking about hard defense spending, I think 3.5% is probably the ceiling of what could be sort of accepted,” he added.

However, Mitsotakis mentioned that the 5% mark could be a long-term goal if broader expenses like critical infrastructure were included in the spending.

“So it really depends on how we do the accounting,” he emphasized.

NATO chief Mark Rutte has proposed that NATO members increase defense spending to 3.5% of GDP, with an additional 1.5% allocated to broader security-related matters.

Many NATO countries have struggled to meet the current 2% target, drawing criticism from Trump.

According to NATO estimates, the U.S. spent around 3.4% of its GDP on defense in 2024, with Poland and Estonia being the only other allies allocating a larger share of their economic power to security.

Poland has committed to increasing its defense spending to potentially 5% in the near future, while other countries have expressed caution, citing difficulties in managing such expenditures.

German Foreign Minister Johann Wadephul also indicated Germany’s support for Trump’s target, stating that the 5% demanded by President Trump are necessary.

A decision on new defense spending targets could be made at the upcoming NATO summit in late June.

Mitsotakis of Greece, speaking to CNBC, agreed with Trump’s call for higher defense expenditures from NATO allies.

“Donald Trump was right when in 2017 he said you’re not doing your fair share, because we didn’t,” Mitsotakis acknowledged. “We understand now that there is no free lunch and we cannot free ride.”

Greece allocated nearly 3.1% of its GDP to defense spending last year, according to NATO estimates. The country has consistently surpassed the 2% target for many years and increased defense expenses further in 2020 amidst tensions with Turkey.

“We spend more than 3% for very specific reasons, and we were also advocating very much for a change in European rules to encourage us to be able to spend more,” Mitsotakis explained, noting some progress in this area.

European Union fiscal rules have traditionally limited member countries’ debt and budget deficits. The European Commission has recently shown willingness to ease fiscal constraints as part of a broader security initiative.

Mitsotakis emphasized the importance of ongoing discussions regarding a potential European facility to support defense spending.