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Tuesday, October 14, 2025

NATO, how much does it cost and who pays?

First, it should be clarified that NATO has political and military coordination roles, but does not have its own army. Military forces are made up of contingents from member countries, which voluntarily make soldiers, equipment and bases available, according to needs. That is, each country retains full control of its armed forces, but decides to make them available to allies in case of need.

The axis of European defense still remains NATO, the North Atlantic Treaty Organization, founded in Washington in 1949 by twelve countries. Italy was among them. The organization’s main task is defined by Article 5 of the Treaty: all countries intervene to help a partner that is attacked by an external enemy. This article has only been invoked once, in 2001, when the allies supported the American mission in Afghanistan, after the September 11 attacks on the Twin Towers.

Throughout these years, there have been developments and changes: the number of member countries has increased to 32, but the basic mechanisms of operation have remained the same. First, it should be clarified that NATO has political and military coordinating roles, but does not have its own army. The military forces are made up of contingents of member countries, which voluntarily make soldiers, equipment and bases available, according to needs. Therefore, each country retains full control of its armed forces, but decides to make them available to allies in case of need.

CHAIN ​​OF COMMAND

It is clear that joint missions cannot be launched without command and control centers. NATO has two levels of coordination: Political level: The North Atlantic Committee, a body made up of ambassadors from 32 countries, which usually meets every Wednesday morning at NATO headquarters in Brussels. There, the partners discuss and take operational decisions, always unanimously. The most recent case occurred on September 10, when it was decided to strengthen the eastern flank of Europe after a Russian drone attack on Polish territory.

Military level: consists of various structures. The Military Committee, currently headed by Italian Admiral Giuseppe Cavo Dragone, brings together the chiefs of general staff of the armed forces of 32 countries and plays a linking role between them. But the key operational point is SHAPE (Supreme Command Allied Powers Europe), headquartered in Mons, Belgium. All information from NATO Regional commands and the armies of the member countries is collected here. From here, instructions for missions such as border monitoring or military training come from. The supreme commander is always an American (today: General Alexus Grynkewich), while the deputy is a British (today: Keith Blount).

HOW IS NATO ACTIVATED?

NATO’s response begins with a political decision at the highest level: the North Atlantic Committee, which can also include heads of state and government. They consult the Military Committee, and then it is up to SHAPE to provide the operational, military response. It seems like a contradiction that unanimity is required for decisions, but each state can choose whether or not to participate with troops. In fact, this avoids paralysis: a state that does not want to participate can give political approval without committing militarily and without blocking others.

HOW DO MEMBER STATES CONTRIBUTE?

Historically, Americans have led NATO strategies. In the 1950s, there were 430 American soldiers in Europe. After the fall of the Berlin Wall, the number decreased to 63.835 in 2021, but today it has grown to about 100, especially in Poland, Romania and the Baltic states. The US contributes to NATO missions, but also acts independently. After the Russian invasion of Ukraine in 2022, President Biden sent 20 soldiers to Poland. There, the US has established the V Corps Command, to coordinate combat forces on the flank most threatened by Russia.

WHAT IS ITALY DOING?

The Putin factor has forced NATO to change course. Since 2014, after Russia’s illegal annexation of Crimea, NATO has created a rapid reaction force (“Response Force”), to mobilize up to 100 soldiers within 10 days of a potential attack and another 200 within 20-30 days. In 2017, four battalions were created in Estonia, Latvia, Lithuania and Poland, with 500-1000 soldiers each. In 2022, four more were added in Slovakia, Hungary, Romania and Bulgaria. Italy has a leading role in Bulgaria and contributes troops to Hungary and Latvia. It also participates in air surveillance missions in Poland, Romania, Lithuania and naval missions in the Baltic Sea and the Mediterranean.

WHO PAID AND HOW MUCH?

This system has an operating cost: NATO’s budget for 2025 is 4,6 billion euros and 5,3 billion for 2026. These expenses are for buildings, organization, training, salaries, etc. Each country pays based on a formula that also takes into account Gross Domestic Product (GDP). For example, the US pays about 16%, Italy about 8,5%. But the bulk of the cost is the countries’ own military spending. According to NATO data for 2024, the amount is 1.421 billion dollars (935 billion from the US and 516 from Europe and Canada). According to a more recent report by the SIPRI Institute in Stockholm, the spending for 2024 is 1.506 billion, of which 997 are from the US (3,4% of GDP), while the rest from other countries, on average 2% of GDP. There are big differences: 1,4% for Spain, 1,6% for Italy, 4,2% for Poland, 3% for the Baltic countries.

TRUMP AND THE NEW NATO PLAN

At the last summit held in June in The Hague, 32 heads of state agreed to increase the contribution from 2% to 5% of GDP by 2035. It is a political commitment, not legally binding. This 5% was proposed by Donald Trump as a way to redistribute the financial burden more equitably within NATO. But the real number to consider is 3,5%. This is the key figure for NATO rearmament: $1.750 billion, which the 32 governments must spend on the armed forces over 10 years. While the other 1,5% will be used for infrastructure, communications, electronic control systems, etc.

First, it should be clarified that NATO has political and military coordination roles, but does not have its own army. Military forces are made up of contingents from member countries, which voluntarily make soldiers, equipment and bases available, according to needs. That is, each country retains full control of its armed forces, but decides to make them available to allies in case of need.

The axis of European defense still remains NATO, the North Atlantic Treaty Organization, founded in Washington in 1949 by twelve countries. Italy was among them. The organization’s main task is defined by Article 5 of the Treaty: all countries intervene to help a partner that is attacked by an external enemy. This article has only been invoked once, in 2001, when the allies supported the American mission in Afghanistan, after the September 11 attacks on the Twin Towers.

Throughout these years, there have been developments and changes: the number of member countries has increased to 32, but the basic mechanisms of operation have remained the same. First, it should be clarified that NATO has political and military coordinating roles, but does not have its own army. The military forces are made up of contingents of member countries, which voluntarily make soldiers, equipment and bases available, according to needs. Therefore, each country retains full control of its armed forces, but decides to make them available to allies in case of need.

CHAIN ​​OF COMMAND

It is clear that joint missions cannot be launched without command and control centers. NATO has two levels of coordination: Political level: The North Atlantic Committee, a body made up of ambassadors from 32 countries, which usually meets every Wednesday morning at NATO headquarters in Brussels. There, the partners discuss and take operational decisions, always unanimously. The most recent case occurred on September 10, when it was decided to strengthen the eastern flank of Europe after a Russian drone attack on Polish territory.

Military level: consists of various structures. The Military Committee, currently headed by Italian Admiral Giuseppe Cavo Dragone, brings together the chiefs of general staff of the armed forces of 32 countries and plays a linking role between them. But the key operational point is SHAPE (Supreme Command Allied Powers Europe), headquartered in Mons, Belgium. All information from NATO Regional commands and the armies of the member countries is collected here. From here, instructions for missions such as border monitoring or military training come from. The supreme commander is always an American (today: General Alexus Grynkewich), while the deputy is a British (today: Keith Blount).

HOW IS NATO ACTIVATED?

NATO’s response begins with a political decision at the highest level: the North Atlantic Committee, which can also include heads of state and government. They consult the Military Committee, and then it is up to SHAPE to provide the operational, military response. It seems like a contradiction that unanimity is required for decisions, but each state can choose whether or not to participate with troops. In fact, this avoids paralysis: a state that does not want to participate can give political approval without committing militarily and without blocking others.

HOW DO MEMBER STATES CONTRIBUTE?

Historically, Americans have led NATO strategies. In the 1950s, there were 430 American soldiers in Europe. After the fall of the Berlin Wall, the number decreased to 63.835 in 2021, but today it has grown to about 100, especially in Poland, Romania and the Baltic states. The US contributes to NATO missions, but also acts independently. After the Russian invasion of Ukraine in 2022, President Biden sent 20 soldiers to Poland. There, the US has established the V Corps Command, to coordinate combat forces on the flank most threatened by Russia.

WHAT IS ITALY DOING?

The Putin factor has forced NATO to change course. Since 2014, after Russia’s illegal annexation of Crimea, NATO has created a rapid reaction force (“Response Force”), to mobilize up to 100 soldiers within 10 days of a potential attack and another 200 within 20-30 days. In 2017, four battalions were created in Estonia, Latvia, Lithuania and Poland, with 500-1000 soldiers each. In 2022, four more were added in Slovakia, Hungary, Romania and Bulgaria. Italy has a leading role in Bulgaria and contributes troops to Hungary and Latvia. It also participates in air surveillance missions in Poland, Romania, Lithuania and naval missions in the Baltic Sea and the Mediterranean.

WHO PAID AND HOW MUCH?

This system has an operating cost: NATO’s budget for 2025 is 4,6 billion euros and 5,3 billion for 2026. These expenses are for buildings, organization, training, salaries, etc. Each country pays based on a formula that also takes into account Gross Domestic Product (GDP). For example, the US pays about 16%, Italy about 8,5%. But the bulk of the cost is the countries’ own military spending. According to NATO data for 2024, the amount is 1.421 billion dollars (935 billion from the US and 516 from Europe and Canada). According to a more recent report by the SIPRI Institute in Stockholm, the spending for 2024 is 1.506 billion, of which 997 are from the US (3,4% of GDP), while the rest from other countries, on average 2% of GDP. There are big differences: 1,4% for Spain, 1,6% for Italy, 4,2% for Poland, 3% for the Baltic countries.

TRUMP AND THE NEW NATO PLAN

At the last summit held in June in The Hague, 32 heads of state agreed to increase the contribution from 2% to 5% of GDP by 2035. It is a political commitment, not legally binding. This 5% was proposed by Donald Trump as a way to redistribute the financial burden more equitably within NATO. But the real number to consider is 3,5%. This is the key figure for NATO rearmament: $1.750 billion, which the 32 governments must spend on the armed forces over 10 years. While the other 1,5% will be used for infrastructure, communications, electronic control systems, etc.

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