logo
NATO leaders to meet amid growing geopolitical instability

NATO leaders to meet amid growing geopolitical instability

Arab News11 hours ago

https://arab.news/v2jf4
The 32 leaders of NATO's member states will gather in The Hague from Tuesday for a major summit. This will be the alliance's first summit since US President Donald Trump returned to the White House and it comes at a time of growing geopolitical instability. From war in Ukraine to tensions in the Middle East and the increasing assertiveness of China, there is no shortage of serious challenges. If this week's G7 meeting in Canada is any indicator, this NATO Summit will be short and unlikely to produce a common position on most of the major challenges confronting the alliance.
Already, the signs suggest that this summit will be more modest in ambition and structure than previous gatherings. The number of scheduled sessions is lower than usual and a draft of the summit communique circulating through NATO capitals is significantly shorter in both length and scope than past declarations.
However, despite these limitations, the alliance's leaders will be eager to project unity. The summit will likely feature strong public messaging on those areas where consensus exists — especially the issue Trump cares about most: increasing European defense spending. More divisive issues, such as the future of Ukraine, the threat posed by China and the ongoing war between Israel and Iran, will be relegated to closed-door meetings.
Defense spending will dominate the public agenda. Since the 2006 NATO Summit, member states have committed to spending at least 2 percent of their gross domestic product on national defense. For many years, this pledge was largely ignored. By the time Russia first invaded Ukraine in 2014, only three member states were meeting the target. That same year, at the NATO Summit in Wales, alliance leaders reaffirmed the 2 percent goal and agreed to reach it by 2024. While meaningful progress has been made — 23 countries now meet or exceed the 2 percent threshold — there is no question that Trump views the current level of spending as insufficient.
The signs suggest that this summit will be more modest in ambition and structure than previous gatherings
Luke Coffey
That is why Trump is now pushing for a new benchmark: a combined 5 percent of GDP, to be phased in over the next several years. Under this proposal, NATO members would spend 3.5 percent of GDP on core defense capabilities, with an additional 1.5 percent allocated to defense-adjacent areas such as cybersecurity, critical port infrastructure, strategic transportation networks and national resilience efforts.
A few countries have already stepped forward. Poland, the Netherlands and Sweden have laid out detailed and credible plans to reach the new targets. Other countries, such as Spain, have shown greater reluctance, but recent weeks have seen a shift in attitude due to pressure from both Washington and key European allies.
Another area where consensus is building is on defense industrial cooperation. Russia's full-scale invasion of Ukraine in 2022 and the West's response exposed serious deficiencies in the defense production capabilities of NATO countries. The war has revealed that many allies lack the industrial base to sustain high-intensity conflict, replenish munitions and scale up production quickly. These shortcomings have alarmed policymakers and pushed NATO to take a more active role in coordinating defense production.
While NATO, as an intergovernmental security alliance, cannot dictate national industrial policies, it can play a vital coordinating role. It can identify capability gaps, establish common standards and promote the interoperability of weapons and munitions among member states.
Still, not all issues lend themselves to consensus. Some of the most pressing matters will be discussed privately. First among them is Ukraine. With US congressional funding for Ukraine set to expire by the end of summer, and with the Trump administration showing decreasing interest in leading peace talks, European countries will soon need to shoulder a much larger share of the burden.
The Trump administration is expected to push its European allies to reduce Chinese influence on the continent
Luke Coffey
How they will do this — and whether they are politically willing to do so — remains unclear. It will require significant political will, financial resources and a united approach that has so far been lacking across much of Europe. As long as Trump is in office, NATO is unlikely to take a leading role in organizing or funding long-term assistance to Kyiv.
Another issue looming over the summit is China. The Trump administration is expected to push its European allies to reduce Chinese influence on the continent, particularly in areas such as telecommunications infrastructure, port ownership and advanced technologies like artificial intelligence and quantum computing. However, NATO's mandate as a military alliance limits what it can directly do. It lacks the tools to regulate investment or economic policy. The responsibility will therefore fall to national governments and the EU. Even so, the Trump administration will almost certainly use the summit to press the point behind the scenes.
Finally, the war between Israel and Iran will feature prominently in closed-door discussions. Although NATO has no formal mandate in this conflict, the issue is of vital concern to many members. A prolonged or expanded war — particularly if it spills into Iranian territory — could create massive regional instability, including refugee flows, terrorism and economic disruption.
Moreover, Turkiye, a NATO member, shares a border with Iran, adding to the alliance's concern. Allies will be watching carefully for signals about how this conflict may evolve and what role, if any, NATO should play in contingency planning.
It is in everyone's interest that this summit is perceived as a success. Privately, Trump administration officials have reassured their European counterparts that there will be no surprises. American officials know that Europe remains vital to US interests. Europe is America's largest export market and the biggest source of foreign investment.
NATO is not only a military alliance — it is the foundation of the transatlantic economic and strategic order. And in the end, that reality will likely keep Trump invested in the alliance's success.
• Luke Coffey is a senior fellow at the Hudson Institute. X: @LukeDCoffey

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

How Senate Republicans Want to Change the Tax Breaks in Trump's Big Bill
How Senate Republicans Want to Change the Tax Breaks in Trump's Big Bill

Al Arabiya

timean hour ago

  • Al Arabiya

How Senate Republicans Want to Change the Tax Breaks in Trump's Big Bill

House and Senate Republicans are taking slightly different approaches to the tax cuts they want to include in their massive tax and spending cuts bill. Republicans in the two chambers disagree on the size of a deduction for state and local taxes. They also disagree on issues such as allowing people to use their health savings accounts to help pay for their gym memberships and whether electric vehicle and hybrid owners should pay an annual fee. The House passed its version shortly before Memorial Day. Now the Senate is looking to pass its version. While the two bills are similar on the major tax provisions, how they work out their differences in the coming weeks will determine how quickly they can finalize a bill. President Donald Trump is pushing to have the legislation on his desk by July 4. Here's a look at some of the key differences between the two bills: Tax break for families: The child tax credit currently stands at $2,000 per child. The House bill temporarily boosts it to $2,500 for the 2025 through 2028 tax years –– roughly the length of President Donald Trump's second term. It also indexes the credit amount for inflation beginning in 2027. The Senate bill provides a smaller initial bump-up to $2,200, but the bump is permanent, with the credit amount indexed for inflation beginning next year. Trump campaign promises: Trump promised during the campaign that he would seek to end income taxes on tips, overtime, and Social Security benefits. He also said he would give car buyers a new tax break by allowing them to deduct the interest paid on auto loans. The House and Senate bills incorporate those promises with temporary deductions lasting from the 2025 through 2028 tax years, but with some differences. The House bill creates a deduction on tips for those working in jobs that have customarily received tips. The House also provides for a deduction for overtime that's equal to the amount of overtime a worker has earned. The Senate bill comes with more restrictions. The deduction for tips is limited to $25,000 per taxpayer, and the deduction for overtime is limited to $12,500 per taxpayer. The House and Senate bills both provide a deduction of up to $10,000 for interest paid on loans for vehicles made in the US. And on Social Security, the bills don't directly touch the program. Instead, they grant a larger tax deduction for Americans age 65 and older. The House sets the deduction at $4,000. The Senate sets it at $6,000. Both chambers include income limits over which the new deductions begin to phase out. More SALT: The caps on state and local tax deductions (known in Washington as the SALT cap) now stand at $10,000. The House bill, in a bid to win over Republicans from New York, California, and New Jersey, lifts the cap to $40,000 per household with incomes of less than $500,000. The credit phases down for households earning more than $500,000. The Senate bill keeps the cap at $10,000. That's a non-starter in the House, but Republicans in the two chambers will look to negotiate a final number in the coming weeks that both sides can accept. Medicaid providers: The House bill prohibits states from establishing new provider taxes or increasing existing taxes. These are taxes that Medicaid providers, such as hospitals, pay to help states finance their share of Medicaid costs. In turn, the taxes allow states to receive increased federal matching funds while generally holding providers harmless through higher reimbursements that offset the taxes paid. Such taxes are now effectively capped at six percent. The Senate looks to gradually lower that threshold for states that have expanded their Medicaid populations under the Affordable Care Act (or Obamacare) until it reaches 3.5 percent in 2031, with exceptions for nursing homes and intermediate care facilities. Industry groups have warned that limiting the ability of states to tax providers may lead to some states making significant cuts to their Medicaid programs as they make up for the lost revenue in other ways. The Medicaid provision could be a flashpoint in the coming House and Senate negotiations. Sen. Josh Hawley, R-Mo., was highly critical of the proposed Senate changes. 'This needs a lot of work. It's really concerning, and I'm really surprised by it,' he said. 'Rural hospitals are going to be in bad shape.' Tax breaks for business: The House bill would allow companies for five years to fully deduct equipment purchases and domestic research and development expenses. The Senate bill includes no sunset, making the tax breaks permanent, which was a key priority of powerful trade groups such as the US Chamber of Commerce. Clean energy tax credits: Republicans in both chambers are looking to scale back the clean energy tax credits enacted through then-President Joe Biden's climate law. It aimed to boost the nation's transition away from planet-warming greenhouse gas emissions toward renewable energy, such as wind and solar power. Under the Senate bill, the tax credits for clean energy and home energy efficiency would still be phased out, but less quickly than under the House bill. Still, advocacy groups fear that the final measure will threaten hundreds of thousands of jobs and drive up household energy costs. Odds and ends: The House bill would allow millions of Americans to use their health savings accounts to pay for gym memberships, with a cap of $500 for single taxpayers and $1,000 for joint filers. The Senate bill doesn't include such a provision. The House reinstates a charitable deduction for non-itemizers of $150 per taxpayer. The Senate bill increases that deduction for donations to $1,000 per taxpayer. Republicans in the House bill included a new annual fee of $250 for electric vehicle owners and $100 for hybrid owners, which would be collected by state motor vehicle departments. The Senate bill excludes the proposed fees.

Japan scraps US meeting after Washington demands more defense spending: Report
Japan scraps US meeting after Washington demands more defense spending: Report

Arab News

timean hour ago

  • Arab News

Japan scraps US meeting after Washington demands more defense spending: Report

WASHINGTON: Japan has canceled a regular high-level meeting with its key ally the United States after the Trump administration demanded it spend more on defense, the Financial Times reported on Friday. Secretary of State Marco Rubio and Defense Secretary Pete Hegseth had been expected to meet Foreign Minister Takeshi Iwaya and Defense Minister Gen Nakatani in Washington on July 1 for the annual 2+2 security talks. But Tokyo scrapped the meeting after the US asked Japan to boost defense spending to 3.5 percent of gross domestic product, higher than an earlier request of 3 percent, the newspaper said, citing unnamed sources familiar with the matter. Japan's Nikkei newspaper reported on Saturday that President Donald Trump's government was demanding that its Asian allies, including Japan, spend 5 percent of GDP on defense. A US official who asked not to be identified told Reuters that Japan had 'postponed' the talks in a decision made several weeks ago. The official did not cite a reason. A non-government source familiar with the issue said he had also heard Japan had pulled out of the meeting but not the reason for it doing so. State Department spokesperson Tammy Bruce said she had no comment on the FT report when asked about it at regular briefing. The Pentagon also had no immediate comment. Japan's embassy in Washington did not respond to a request for comment. The nation's foreign and defense ministries and the Prime Minister's Office did not answer phone calls seeking comment outside business hours on Saturday. The FT said the higher spending demand was made in recent weeks by Elbridge Colby, the third-most senior Pentagon official, who has also recently upset another key US ally in the Indo-Pacific by launching a review of a project to provide Australia with nuclear-powered submarines. In March, Prime Minister Shigeru Ishiba said that other nations do not decide Japan's defense budget after Colby, in his nomination hearing to be under secretary of defense for policy, called for Tokyo to spend more to counter China. Japan and other US allies have been engaged in difficult trade talks with the United States over President Donald Trump's worldwide tariff offensive. The FT said the decision to cancel the July 1 meeting was also related to Japan's July 20 upper house elections, expected to be a major test for Ishiba's minority coalition government. Japan's move on the 2+2 comes ahead of a meeting of the US-led NATO alliance in Europe next week, at which Trump is expected to press his demand that European allies boost their defense spending to 5 percent of GDP.

Trump says two weeks is ‘maximum' for Iran decision
Trump says two weeks is ‘maximum' for Iran decision

Al Arabiya

time2 hours ago

  • Al Arabiya

Trump says two weeks is ‘maximum' for Iran decision

President Donald Trump said Friday that Iran had a 'maximum' of two weeks to avoid possible US air strikes, indicating he could take a decision before the fortnight deadline he set a day earlier. Trump added that he was not inclined to stop Israel attacking Iran because it was 'winning,' and was dismissive of European efforts to mediate an end to the conflict. 'I'm giving them a period of time, and I would say two weeks would be the maximum,' Trump told reporters when asked if he could decide to strike Iran before that. He added that the aim was to 'see whether or not people come to their senses.' Trump had said in a statement on Thursday that he would 'make my decision whether or not to go within the next two weeks' because there was a 'substantial chance of negotiations' with Iran. Those comments had been widely seen as opening a two-week window for negotiations to end the war between Israel and Iran, with the European powers rushing to talks with Tehran. But his latest remarks indicated Trump could still make his decision before that if he feels there has been no progress toward dismantling Iran's nuclear program. For all the latest headlines, follow our Google News channel online or via the app: Trump meanwhile dismissed talks that European powers Britain, France, Germany and the EU held with Iran's foreign minister in Geneva on Friday. 'They didn't help,' he said as he arrived in Morristown, New Jersey, ahead of a fundraising dinner at his nearby golf club. 'Iran doesn't want to speak to Europe. They want to speak to us. Europe is not going to be able to help in this.' Iranian Foreign Minister Abbas Araghchi said after the talks in Geneva that Tehran would not resume negotiations with the United States until Israel stopped its attacks. But Trump was reluctant. 'It's very hard to make that request right now,' Trump said. 'If somebody's winning, it's a little bit harder to do than if somebody's losing, but we're ready, willing and able, and we've been speaking to Iran, and we'll see what happens.' Trump meanwhile doubled down on his claims that Iran is weeks away from being able to produce a nuclear bomb, despite divisions in his own administration about the intelligence behind his assessment. Tulsi Gabbard, Trump's director of national intelligence, said in a report in March that Iran was not close to having enough enriched uranium for a nuclear weapon. 'She's wrong,' Trump said of Gabbard, a longtime opponent of US foreign intervention whom Trump tapped to coordinate the sprawling US spy community.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store