Karoline Leavitt, the press secretary for Donald Trump, has advocated for Australia to adopt NATO member states’ recent decision to increase defence spending to 3.5% of GDP, viewing it as a model. During a press conference, she stated that if European allies can achieve this level of spending, then nations in the Asia-Pacific should be able to as well.
In response, Australian Prime Minister Anthony Albanese affirmed that Australia will not be pushed to increase its defence budget further. He highlighted that the nation has already raised its defence spending, committing to an additional $57 billion for its military. Additionally, Defence Minister Richard Marles previously announced a further investment of $50.3 billion into the defence sector by 2034, raising Australia’s defence expenditure from 2% to 2.3% of GDP.
While the majority of NATO members agreed to the proposed 5% increase, Spain diverged from the consensus, with Prime Minister Pedro Sánchez arguing that such a commitment would be unreasonable and potentially counterproductive to Spain’s optimal spending and the European Union’s efforts in bolstering its defence capabilities.
Although Australia has not committed to the suggested 3.5% spending benchmark, it is actively investing in defence, including payments for US Virginia-class submarines under the AUKUS pact, estimated at $368 billion. The Pentagon has recently indicated that it is reviewing this trilateral agreement, casting some uncertainty over its future.