Sources: NATO allies agree extra €20 billion euros in joint spending

A 10% increase in civilian and military budgets is envisioned from 2023 onwards while the NATO Security Investment Programme (NSIP), a major infrastructure fund, is to rise annually by as much as 25%.

NATO allies agreed to an extra €20 billion ($21 billion) in joint spending by 2030, a major annual increase in alliance budgets, participants in the talks in Madrid informed dpa on Thursday.

A 10% increase in civilian and military budgets is envisioned from 2023 onwards while the NATO Security Investment Programme (NSIP), a major infrastructure fund, is to rise annually by as much as 25%.
The additional funds are to facilitate increased investments to move equipment to the alliance's members in Eastern Europe after a summit decision to ramp up defences in the region.
In addition, there should also be more funds for exercises and cybersecurity, for example, as well as the promotion of partnerships with friendly countries outside of the alliance.
NATO did not make the spending public at the leaders' summit in Madrid over French objections, alliance sources informed dpa.
Paris has long objected to spending increases and only backed the investment on the basis the details would not be communicated until later, NATO sources said.
In his final press conference comments, NATO Secretary General Jens Stoltenberg only spoke of a "significant increase in NATO's common funded budgets."
France also insisted that the decision be reviewed in 2025, NATO sources said.
Currently, NATO's military and civilian budgets and programmes amount to about €2.5 billion.
For context, according to alliance documents, US defence spending alone last stood at $822 billion, or €786 billion, while Germany's stood at €55.6 billion.
Germany and the United States bear the largest share of NATO's joint costs, around €400 million, or 16.3% each, in 2021, according to the alliance's current contribution records.
Under pressure from former US president Donald Trump, the alliance recently agreed to revise the contribution scale. As a result, Germany's share rose significantly while the US contributions fell.
Trump had repeatedly criticized European members of NATO such as Germany for not contributing enough to defence funding among the alliance.

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