NATO Summit: NATO allies agree to spend 5% of GDP per year on defence by 2035
NATO leaders have endorsed a major new defence spending target at their summit in The Hague. Members have committed to invest 5 per cent of their GDP per year by 2035 on core defence and defence-related spending.
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Straits Times
an hour ago
- Straits Times
Turkey's Erdogan calls for permanent Iran-Israel ceasefire, Gaza truce
Turkey's President Tayyip Erdogan speaks during a press conference at the NATO summit in The Hague, Netherlands June 25, 2025. REUTERS/Piroschka Van De Wouw ANKARA - Turkish President Tayyip Erdogan told leaders at a NATO summit on Wednesday that a ceasefire between Israel and Iran needed to be made permanent, his office said, and called for a ceasefire in Gaza to alleviate the humanitarian crisis there. NATO member Turkey has been fiercely critical of Israel and its assault against Palestinian Hamas militants in Gaza, which has been reduced to rubble after two years of war and had its population displaced. Ankara has also said Israel's "state terrorism" against Iran - with which it shares a 560-kilometer border - heightened the risks of a wider conflict, and welcomed the ceasefire between the two. At the NATO summit in The Hague, Erdogan held talks with the leaders of France, Germany and Britain on regional tensions, bilateral ties and relations with the EU, and defence industry cooperation. Erdogan met U.S. President Donald Trump late on Tuesday. "Our President said he welcomed the ceasefire between Israel and Iran, that the de facto situation needs to turn into lasting calm as soon as possible, that the humanitarian crisis in Gaza is increasingly continuing, and that a lasting ceasefire is also needed there urgently," Erdogan's office said after his meeting with French President Emmanuel Macron. He repeated that call to German Chancellor Friedrich Merz, adding that a solution needed to be found to the humanitarian crisis in Gaza. Erdogan also told British Prime Minister Keir Starmer that "these tensions must not leave the humanitarian crisis in Gaza - which has reached a disastrous level - forgotten". Erdogan said the problems between Tehran and Washington could only be solved through diplomacy, adding that everyone must contribute to achieving lasting peace in the Middle East. "We welcome the ceasefire achieved through the efforts of U.S. President Trump," he told a press conference following the summit. "We expect the parties to unconditionally abide by the call of my friend Trump." REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
an hour ago
- Straits Times
NATO's Trump flattery buys time but dodges tough questions
Turkey's President Tayyip Erdogan speaks during a press conference at the NATO summit in The Hague, Netherlands June 25, 2025. REUTERS/Piroschka Van De Wouw THE HAGUE - Lavishing praise, playing the royal card and copying his slogans – NATO pulled out all the stops to keep Donald Trump happy and hold the alliance together at a summit in The Hague. The plan came off, although it largely avoided tough topics of vital importance to NATO such as the war in Ukraine, Russia strategy and a likely drawdown of U.S. troops in Europe. Sooner or later, NATO will have to deal with them too. As NATO boss Mark Rutte had planned, the main summit outcomes were a vow by the allies to heed Trump's call to spend 5% of GDP on defence - a big increase on the current 2% target - and a renewed U.S. commitment to NATO's mutual defence pact. That is a far cry from a few months ago, when transatlantic ties were so tense that Friedrich Merz, now Germany's chancellor, wondered openly after his election win whether NATO would exist in its current form by the time of the Hague summit. There was nothing subtle about NATO's strategy to keep Trump on board. Rutte gushed with compliments in a message to Trump, made public by the U.S. president as he flew to The Hague. "You will achieve something NO American president in decades could get done," the former Dutch prime minister said in his message, putting some of his words in capitals like Trump. "Europe is going to pay in a BIG way, as they should, and it will be your win." Right before the summit, in another sign of chumminess with Trump, Rutte reacted to the U.S. president's comments berating Iran and Israel by saying that "daddy has to sometimes use strong language". Given Trump's threats to quit NATO in his first term and not to protect allies who failed to spend enough on defence, the stakes for NATO have been high. Most NATO members see Russia as an increasingly direct threat to their security following the 2022 invasion of Ukraine, and know they would struggle badly to defend themselves against attack without their nuclear-armed superpower ally. After the summit, Trump's previously harsh rhetoric on NATO had been replaced by something very different. "I left here saying that these people really love their countries. It's not a rip-off, and we're here to help them, protect them," he told reporters. Trump only criticised Spain for not signing up to the new defence spending target and said it would pay up another way - in its trade relations with the United States. Many European nations will find it tough economically to meet the target, but that issue was left for another day. CHARM OFFENSIVE As part of NATO's Hague charm offensive, Trump was granted the rare honour of staying overnight at the ornate royal palace of Dutch King Willem-Alexander before the summit. The king hosted a three-course meal for leaders prepared by 20 chefs and served by 18 footmen in the baroque 17th century "Orange Hall" in the Huis ten Bosch palace. At the start of the summit, other NATO leaders lined up to praise Trump. Lithuanian President Gitanas Nauseda suggested the alliance adopt the motto "Make NATO Great Again". Rutte kept the summit short and simple, minimising the risks of any blow-ups with Trump. Ukrainian President Volodymyr Zelenskiy had to settle for a seat at the pre-summit dinner rather than the main meeting, although he held a separate meeting with Trump after the summit. The summit's final statement ran to just five paragraphs - compared with 38 in the text from last year's leaders' meeting in Washington. It does not explicitly describe Russia's military action in Ukraine as a war or invasion, nor does it repeat or reaffirm a previous pledge that Ukraine will one day join the alliance. By focusing on reaffirming commitments to NATO and the new spending pledge, it papered over major differences between Washington and many European allies on Russia and Ukraine. To the discomfort of many Europeans, Trump has taken a more conciliatory stance with Moscow and been less supportive of Kyiv than his predecessor Joe Biden as he seeks to end the war. While such diplomatic fudges may hold NATO together for now, it will be hard for the alliance to function effectively if there is a major long-term difference between the United States and Europe on a question as fundamental as how to handle Russia. "A NATO summit that essentially ignores the war that is still raging in Ukraine should worry all of us," said Julianne Smith, who served as the U.S. ambassador to NATO under the Biden administration. Peter Bator, Slovakia's former ambassador to NATO, said "we have just missed an opportunity to send a strategic message to the ruler in the Kremlin. And it will cost us in our security". NATO officials will now be watching to see whether Trump's newfound enthusiasm for the alliance is reflected in his administration's ongoing review of U.S. military posture, as Europe relies heavily on U.S. forces for its security. European leaders say they are committed to taking on more of that responsibility but they are anxious to ensure any transfer is done in an orderly and gradual way. "You can feel the anxiety when talking to senior European officials about this," said Oana Lungescu, distinguished fellow at RUSI and former NATO spokesperson. "Most expect the Pentagon to start pulling out some troops and capabilities, but nobody knows how many and how soon." REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
CNA
2 hours ago
- CNA
European Commission to allow stablecoin interchangeability
MILAN :The European Commission is set to clarify that the European Union's crypto rules allow stablecoins issued by a company with an EU licence to be treated as interchangeable with those issued by a company's non-EU entities, a source close to the matter said on Wednesday. The Commission will provide the clarification in the near future, the person said, without giving further details. Stablecoins are a type of crypto asset designed to maintain a stable value by being pegged to a traditional currency, like the U.S. dollar. The guidance is the latest in a series of attempts by regulators to grapple with the risks around stablecoins. ECB President Christine Lagarde on Monday told European policymakers stablecoins posed risks for monetary policy and financial stability, urging European lawmakers to introduce legislation backing the launch of a digital euro. The EU in 2023 adopted an extensive set of rules for crypto assets, known as MiCA, under which issuers of stablecoins must receive supervisory clearance to create their tokens in the EU - referred to as e-money tokens (EMTs). EMT-issuers must hold most of the reserves which back those tokens in an EU-based bank, to ensure that they can meet redemption requests from customers who wish to swap the crypto back into fiat currency. In April 2024, France's banking supervisor posed a query which the Commission is now set to answer seeking clarity on whether identical tokens issued by different arms of the same company - one with an EU-licence and one outside the EU - would be considered interchangeable, or "fungible". The European Central Bank has previously warned of the risk of this approach, saying the reserves held in the EU could be used to meet redemption requests by non-EU token holders. This could "risk undermining EU strategic autonomy/sovereignty", it said in a document in April. A European Commission spokesperson said that a run on a "well-governed and fully collateralised stablecoin" was very unlikely. Non-EU holders of a stablecoin which is jointly issued in the EU and outside the EU would make their redemption requests to the non-EU entity, the spokesperson added. "Moreover, issuers of EMTs that also issue fungible tokens abroad can be required to have a re-balancing mechanism to ensure that reserves in the EU match token holdings in the EU," the spokesperson added.
