Sunday, June 14, 2026 The English edition of ostwirtschaft.de Newsletter
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Poland leads NATO in defense spending

Poland leads NATO in defense spending

Poland continues to steadily build up its military strength—and is setting new standards within NATO. In 2025, the country will spend more than 166 billion złoty (about 38.8 billion euros) on defense. That amounts to 4.3 percent of gross domestic product—the highest share of any member state.

The figures come from NATO’s latest annual report, published on March 26. They highlight a trend that has been emerging for years: Poland is steadily and significantly increasing its defense spending. In 2024, it stood at 137.2 billion złoty, accounting for 3.76 percent of GDP. In 2023, it was 3.26 percent, and in 2022, just 2.21 percent.

As a result, Poland has evolved from an average member to a frontrunner within just a few years. Overall, military engagement within the alliance is also noticeably increasing. According to NATO Secretary General Mark Rutte, the Allies’ defense spending on core areas will exceed the 1.4 trillion U.S. dollar mark (at constant 2021 prices) in 2025.

European countries and Canada, in particular, have significantly increased their budgets. Between 2024 and 2025, their defense spending rose by more than 100 percent in real terms. In 2025 alone, they will collectively invest around $574 billion—a 20 percent increase compared to the previous year.

Alongside Poland, the Baltic states are also among the frontrunners. Lithuania accounts for around 4 percent of GDP, Latvia for 3.74 percent. They are followed by Estonia (3.42 percent), Denmark (3.34 percent), and Norway (3.2 percent). The U.S. is also in the upper range at 3.19 percent.

At the lower end of the scale, countries such as Portugal, Spain, Albania, Canada, and Belgium do meet NATO’s target of 2 percent of GDP—but lag significantly behind the leading nations. The trend is clear: the security situation is forcing many NATO members to significantly increase their spending. Poland is leading the way—and setting the standard for the new phase of rearmament in Europe.

Translated from the German original published on ostwirtschaft.de, March 31, 2026.

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