Frugal no more: new NATO chief Mark Rutte urges members increase defence spending

“To truly match the capabilities with the needs, we need significantly more defence spending,” says Rutte in his inauguration speech to NATO members.

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The Dutchman - despite his reputation as a frugal spender - insisted several times members of the alliance should allocate more cash to defence. [EPA-EFE/OLIVIER HOSLET]

Aurélie Pugnet Euractiv 01-10-2024 14:22 3 min. read Content type: News Euractiv is part of the Trust Project

The former Dutch Prime minister, who proudly called himself a frugal, insisted countries must spend more in his first remarks as NATO head on Tuesday (1 October), putting defence expenditure high on the list of priorities.

With a big smile on his face, and full of energy, Mark Rutte took charge of the highest job of the world's largest and most powerful military alliance on Tuesday - even though he has to leave his home town the Hague, and is no longer allowed to cycle to work.

In NATO's Brussels headquarters, which found a new breath of life for its existence, when Russia attacked Ukraine more than two years ago, he will have the immense responsibility of making sure its members are ready for war if need be.

When laying down his priorities, he also mentioned supporting Ukraine and working with the European Union - which is stepping up its defence role in supporting joint procurement and defence production.

He also promised more cooperation with countries in the Pacific, meaning keeping an eye on China, working with Japan, South Korea, Australia and New Zealand, and the southern countries grappling with terrorism and the influence of Beijing and Moscow.

Spend more 

The Dutchman - despite his reputation as a frugal spender - insisted several times in his first remarks to the 32 ambassadors to NATO, that alliance members should increase defence spending, regardless of who occupies the White House after the November US elections.

"To keep NATO strong and ensure our defence remains effective and credible against all threats, we need more forces, better capabilities faster innovation; this requires more investment," said Rutte.

"To truly match the capabilities with the needs, we need significantly more defence spending – we will make sure to invest enough in the right areas – we must each bear our fair share," he added when talking to the press.

Currently, 23 members spend more than 2%, of GDP on defence, with record high figures,  compared to ten years ago when there were only three.

During the Cold War, however, NATO countries spent around 3.5% of their GDP on defence-related expenditures. Eastern countries are pressing for a debate to increase the target for minimum spending on defence from 2% to 3% of each country's GDP.

Rutte did not specify whether he supported this move, or whether, he saw it as necessary.

Not all agree on spending more. As Prime Minister of the Netherlands, Rutte himself refrained from increasing defence spending until after Russia attacked Ukraine, in the winter of 2022.

New budgetary priorities

He will have to battle against countries who believe the 2% measure is not perfect in measuring the share of the burden they carry, with some calling for a new definition of the criteria, or saying the size of their economies does not allow them to spend that much cash on armies.

After spending years calling on his European colleagues to balance their books and reduce debt and deficit, proudly calling himself a frugal, the situation is now different said Rutte.

Balancing the books "is an issue facing many governments but this is what politicians are meant to do," and this means ensuring "the priorities are financed," said Rutte, suggesting defence should be a higher priority.

"We have to defend. If someone attacks, we will win. But we have to make sure that this is also the case in the coming years".

Rutte will also need to take on board his predecessor Jens Stoltenberg's advice, of not to forget about the risks coming from China, particularly on critical infrastructures, in a letter the Norwegian published on his last day.

[Edited by Rajnish Singh]

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