US Defence Secretary Pete Hegseth has accused some of America’s Nato allies of “free riding” and announced a six-month review of the US military presence in Europe, threatening to scale back forces in countries that do not increase their own defence budgets. The move is the latest attempt by the Trump administration to push European members of the alliance to take greater responsibility for their own security, particularly amid heightened tensions with Russia and after the US-led war with Iran.
Nato, the North Atlantic Treaty Organization, is a military alliance founded in 1949, currently comprising 32 members. Its core principle is collective defence: an attack on one member is considered an attack on all. For decades, the United States has been the dominant military power in Nato, providing the bulk of its high-readiness forces, nuclear deterrence, and key assets such as surveillance aircraft and air-to-air refuelling. However, successive US administrations have urged European allies to spend more on their own defence. In 2014, after Russia’s annexation of Crimea, Nato members agreed to move towards spending 2% of their gross domestic product (GDP) on defence by 2024. Many have not met that target. The Trump administration now wants members to reach 3.5% of GDP — 3.5% on core defence and 1.5% on related infrastructure — by 2035.
“Explains the US review of military presence in Europe and Nato defence spending pressures on allies.”
Hegseth’s announcement, made at a meeting of Nato defence ministers in Brussels, signals a tougher US stance. He said that “our annual Nato dues will be contingent on other countries meeting their defence spending targets” and that the review “some countries will fail, and others will pass with flying colours”. He also criticised allies that refused to allow their airbases to be used by US jets bombing Iran, calling their stance “shameful”. The US has already decided to scale back its commitments to the Nato Force Model (NFM), a high-readiness force that can be deployed rapidly. Details of the reductions, which include air and naval capabilities, have not been made public.
For UK readers, the row is especially significant. Britain is one of the largest defence spenders in Nato, but it too is under pressure. The previous defence secretary, John Healey, resigned after the prime minister would only commit to increasing UK military spending to nearly 2.7% of GDP by 2030, falling short of the 3.5% target that Healey wanted. His replacement, Dan Jarvis, attended the Brussels summit without a detailed defence investment plan, saying he is “working around the clock” to produce one. The UK has also announced it will spend £750m equipping Ukraine with drones. Allies that fail to meet spending targets could see US forces withdrawn, which would affect deterrence against Russia and the ability to monitor Russian submarines in Europe.
Q: Why is the US reviewing its military presence in Europe? The review aims to ensure that European allies take the lead on continental security. The US believes some Nato members have been “free riding” on American defence spending, particularly after many did not support US operations against Iran. The six-month review will assess which countries are meeting defence spending targets and decide where to reduce US forces.
Q: What are the new defence spending targets for Nato members? The US wants Nato members to spend 3.5% of their GDP on core defence and 1.5% on related infrastructure, totalling 5% of GDP — though the 1.5% infrastructure target is not universally agreed. All members except Spain signed up in principle at last year’s leaders’ summit in The Hague to lift defence spending to 3.5% of GDP by 2035.
Q: How might the changes affect the UK? The UK currently plans to spend nearly 2.7% of GDP on defence by 2030, below the 3.5% target. The new defence secretary, Dan Jarvis, is under pressure to produce a plan quickly. If the UK fails to show progress, it could risk US forces being redeployed away from British bases, weakening Nato’s overall deterrence posture.
Nato Secretary-General Mark Rutte said European defence spending rose by €90bn last year — a rise of almost 20% — and that Europeans are “already backfilling” resources the US is cutting. However, a senior Nato official conceded that “not everything” the US withdraws can be fully replaced. The changes are taking effect immediately, and the six-month review will report by the end of 2026.