The West has been free riding on US defence spending
Western nations have been free riders on American defence spending for decades. We shouldn’t be surprised Trump is now calling us to account, writes Paul Ormerod
Keir Starmer has announced an increase in defence spending to 2.5 per cent of GDP ahead of his crucial summit with Donald Trump on Thursday. But even this hasty announcement falls short of what the President has called for Nato countries to ramp their spending up to five per cent of GDP.
Even the United States itself does not meet this target, with defence accounting for some 3.3 per cent of the total economy. But its economy is so vast that the level of American spending dwarfs that of any other country.
Which countries spend the most on defence?
According to the International Institute of Strategic Studies, in 2025 the US defence budget will be almost a trillion dollars. China is the next biggest spender with an estimated $235bn, not much more than a quarter of the American budget.
........© City A.M.
