NATO countries slashed spending as tensions eased after the Cold War. But Russia's 2014 annexation of Ukraine's Crimean Peninsula was a wake-up call. The allies agreed then to halt cuts, boost budgets and move toward spending 2% of gross domestic product on defence by 2024.
Importantly, this is about national military budgets, not NATO funding. No one owes the United States money, even though Washington spends more on defence than all the other allies combined. While budgets have risen since 2014, NATO headquarters chooses to use 2016 -- the year Donald Trump was elected U.S. president-- as its reference point for spending increases. Officials concede privately that this is to mollify Trump.
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