The North Atlantic Treaty Organization, or NATO, was established in 1949 — partially as a check against Soviet expansion in Europe at the outset of the Cold War. Beginning with just 12 member-states — including Canada, France, Great Britain, and the United States — NATO has expanded to include 32 members, and is now considered the largest peace-time military alliance in the world.

24/7 Wall St. Key Points:

• NATO — the world’s largest peace-time military alliance — is centered on a collective defense agreement designed to deter acts of aggression from foreign adversaries. 
• However, many NATO member states have been underinvesting in their militaries for years, potentially jeopardizing the alliance’s efficacy and military capabilities at a time of heightened geopolitical instability.
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At the core of NATO’s founding articles is a collective defense agreement, which states that an attack against one member-state will be considered an attack against all — effectively meaning that every NATO country will come to the defense of any NATO country in the event of a conflict.

While this agreement is intended as a deterrence to help maintain peace, it also appears to have incentivized some alliance members to keep their own military budgets small while relying on the national security umbrella offered by their allies.

In recognition of this free rider problem, and to better ensure the alliance’s military preparedness in the context of growing geopolitical instability, NATO member states agreed in 2014 to spend at least 2% of their gross domestic product on defense. Now, over a decade later, fewer than half of all NATO member states are meeting that threshold.

Using data from the Stockholm International Peace Research Institute, or SIPRI, 24/7 Wall St. identified the NATO countries not paying their fair share. We ranked 31 NATO members on their military spending as a share of GDP in 2023, the latest year of available data. Countries are ranked in order of those spending the most relative to the size of their national economy, to those spending the least.

Although Iceland has been a NATO member since 1949, it was excluded from analysis as it does not have a standing military. It is important to note that while Sweden appears on this list, it is ranked on its military spending for the year before it joined the NATO alliance. All additional supplementary data on defense spending by country is also from SIRPI.

Among the 31 NATO countries on this list, military spending ranges from 3.8% of GDP to less than 1%. In dollar terms, the United States spends far more on its military than any other NATO member, with an estimated defense budget of over $900 billion in 2023, according to SIRPI. In relative terms, the U.S. invests about 3.4% of its annual GDP in defense, the second most of any NATO country.

NATO is currently involved in ongoing talks to once again raise the threshold of defense spending. Mark Rutte, the former Prime Minister of the Netherlands and current head of NATO, recently stated that alliance members should be prepared to invest over 3% of their GDP in defense. The Trump administration, meanwhile, has called for an even higher 5% threshold. (Here is a look at how NATO forces compare to Russia’s military.)

If, and to what degree, military spending targets are raised remains to be seen. But what is already clear, 20 of the 31 alliance members with a standing military will first need to meet the guidelines established over a decade ago before they can comply with any higher standards. (This is what would happen if NATO were to disband.)

These are the NATO countries that are not paying their fair share.

Why it Matters

The ongoing war in Ukraine and escalating tensions between the West and China has driven geopolitical instability to levels not seen in recent memory. In this context, NATO — the world’s largest peace-time collective defense alliance — is reevaluating its policies to better ensure defensive capabilities and military efficacy. While member states will likely be encouraged to increase their defense budgets, most NATO members have been ignoring similar, previously established guidelines for years.

31. Poland

• Defense spending as a share of GDP in 2023: 3.8%
• Total defense budget in 2023 (current USD): $31.6 billion (6th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 8.1% (2nd highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $771 (13th highest of 30 NATO members with available data)
• NATO member since: 1999

30. United States of America

• Defense spending as a share of GDP in 2023: 3.4%
• Total defense budget in 2023 (current USD): $916.0 billion (the highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 9.1% (the highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $2,694 (the highest of 30 NATO members with available data)
• NATO member since: 1949

29. Greece

• Defense spending as a share of GDP in 2023: 3.2%
• Total defense budget in 2023 (current USD): $7.7 billion (14th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 6.6% (5th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $747 (14th highest of 30 NATO members with available data)
• NATO member since: 1952

28. Estonia

• Defense spending as a share of GDP in 2023: 2.9%
• Total defense budget in 2023 (current USD): $1.2 billion (25th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 6.8% (4th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $899 (9th highest of 30 NATO members with available data)
• NATO member since: 2004

27. Lithuania

• Defense spending as a share of GDP in 2023: 2.7%
• Total defense budget in 2023 (current USD): $2.2 billion (22nd highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 6.9% (3rd highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $795 (12th highest of 30 NATO members with available data)
• NATO member since: 2004

26. Finland

• Defense spending as a share of GDP in 2023: 2.4%
• Total defense budget in 2023 (current USD): $7.3 billion (16th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 4.4% (11th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $1,325 (4th highest of 30 NATO members with available data)
• NATO member since: 2023

25. Latvia

• Defense spending as a share of GDP in 2023: 2.3%
• Total defense budget in 2023 (current USD): $1.0 billion (26th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 5.6% (6th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $571 (18th highest of 30 NATO members with available data)
• NATO member since: 2004

24. United Kingdom

• Defense spending as a share of GDP in 2023: 2.3%
• Total defense budget in 2023 (current USD): $74.9 billion (2nd highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 5.2% (8th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $1,106 (5th highest of 30 NATO members with available data)
• NATO member since: 1949

23. Hungary

• Defense spending as a share of GDP in 2023: 2.1%
• Total defense budget in 2023 (current USD): $4.4 billion (19th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 4.4% (12th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $429 (22nd highest of 30 NATO members with available data)
• NATO member since: 1999

22. France

• Defense spending as a share of GDP in 2023: 2.1%
• Total defense budget in 2023 (current USD): $61.3 billion (4th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 3.6% (19th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $947 (7th highest of 30 NATO members with available data)
• NATO member since: 1949

21. Slovakia

• Defense spending as a share of GDP in 2023: 2.0%
• Total defense budget in 2023 (current USD): $2.7 billion (21st highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 4.2% (14th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $460 (21st highest of 30 NATO members with available data)
• NATO member since: 2004

20. Denmark

• Defense spending as a share of GDP in 2023: 2.0%
• Total defense budget in 2023 (current USD): $8.1 billion (13th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 4.1% (15th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $1,378 (3rd highest of 30 NATO members with available data)
• NATO member since: 1949

19. Bulgaria

• Defense spending as a share of GDP in 2023: 1.8%
• Total defense budget in 2023 (current USD): $1.9 billion (23rd highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 5.0% (9th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $287 (26th highest of 30 NATO members with available data)
• NATO member since: 2004

18. Croatia

• Defense spending as a share of GDP in 2023: 1.8%
• Total defense budget in 2023 (current USD): $1.4 billion (24th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 3.9% (17th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $359 (25th highest of 30 NATO members with available data)
• NATO member since: 2009

17. Albania

• Defense spending as a share of GDP in 2023: 1.7%
• Total defense budget in 2023 (current USD): $397.6 million (29th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 5.6% (7th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $140 (29th highest of 30 NATO members with available data)
• NATO member since: 2009

16. North Macedonia

• Defense spending as a share of GDP in 2023: 1.7%
• Total defense budget in 2023 (current USD): $266.6 million (30th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 4.7% (10th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $128 (30th highest of 30 NATO members with available data)
• NATO member since: 2020

15. Montenegro

• Defense spending as a share of GDP in 2023: 1.6%
• Total defense budget in 2023 (current USD): $114.5 million (31st highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 3.7% (18th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $183 (28th highest of 30 NATO members with available data)
• NATO member since: 2017

14. Romania

• Defense spending as a share of GDP in 2023: 1.6%
• Total defense budget in 2023 (current USD): $5.6 billion (17th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 4.4% (13th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $282 (27th highest of 30 NATO members with available data)
• NATO member since: 2004

13. Norway

• Defense spending as a share of GDP in 2023: 1.6%
• Total defense budget in 2023 (current USD): $8.7 billion (12th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 4.0% (16th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $1,584 (2nd highest of 30 NATO members with available data)
• NATO member since: 1949

12. Italy

• Defense spending as a share of GDP in 2023: 1.6%
• Total defense budget in 2023 (current USD): $35.5 billion (5th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 3.0% (27th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $604 (17th highest of 30 NATO members with available data)
• NATO member since: 1949

11. Netherlands

• Defense spending as a share of GDP in 2023: 1.5%
• Total defense budget in 2023 (current USD): $16.6 billion (9th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 3.4% (21st highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $944 (8th highest of 30 NATO members with available data)
• NATO member since: 1949

10. Czechia

• Defense spending as a share of GDP in 2023: 1.5%
• Total defense budget in 2023 (current USD): $5.1 billion (18th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 3.3% (22nd highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $482 (20th highest of 30 NATO members with available data)
• NATO member since: 1999

9. Germany

• Defense spending as a share of GDP in 2023: 1.5%
• Total defense budget in 2023 (current USD): $66.8 billion (3rd highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 3.1% (25th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $802 (11th highest of 30 NATO members with available data)
• NATO member since: 1955

8. Portugal

• Defense spending as a share of GDP in 2023: 1.5%
• Total defense budget in 2023 (current USD): $4.2 billion (20th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 3.4% (20th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $412 (24th highest of 30 NATO members with available data)
• NATO member since: 1949

7. Spain

• Defense spending as a share of GDP in 2023: 1.5%
• Total defense budget in 2023 (current USD): $23.7 billion (8th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 3.2% (23rd highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $499 (19th highest of 30 NATO members with available data)
• NATO member since: 1982

6. Turkey

• Defense spending as a share of GDP in 2023: 1.5%
• Total defense budget in 2023 (current USD): $15.8 billion (10th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: N/A
• Per capita defense spending in 2023: N/A
• NATO member since: 1952

5. Sweden

• Defense spending as a share of GDP in 2023: 1.5%
• Total defense budget in 2023 (current USD): $8.8 billion (11th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 3.1% (26th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $825 (10th highest of 30 NATO members with available data)
• NATO member since: 2024

4. Slovenia

• Defense spending as a share of GDP in 2023: 1.3%
• Total defense budget in 2023 (current USD): $907.5 million (27th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 2.8% (28th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $428 (23rd highest of 30 NATO members with available data)
• NATO member since: 2004

3. Canada

• Defense spending as a share of GDP in 2023: 1.3%
• Total defense budget in 2023 (current USD): $27.2 billion (7th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 3.1% (24th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $702 (15th highest of 30 NATO members with available data)
• NATO member since: 1949

2. Belgium

• Defense spending as a share of GDP in 2023: 1.2%
• Total defense budget in 2023 (current USD): $7.6 billion (15th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 2.2% (29th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $653 (16th highest of 30 NATO members with available data)
• NATO member since: 1949

1. Luxembourg

• Defense spending as a share of GDP in 2023: 0.7%
• Total defense budget in 2023 (current USD): $662.5 million (28th highest of 31 NATO members with a standing military)
• Defense spending as a share of government budget in 2023: 1.6% (30th highest of 30 NATO members with available data)
• Per capita defense spending in 2023: $1,011 (6th highest of 30 NATO members with available data)
• NATO member since: 1949

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