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NATO allies agree to higher 5% defense spending target

NATO allies agree to higher 5% defense spending target

NBC News5 hours ago

NATO allies on Wednesday agreed to more than double their defense spending target from 2% of gross domestic product to 5% by 2035, in the most decisive move from the alliance in over a decade.
In a joint declaration, the Western military bloc said it was 'united in the face of profound security threats and challenges,' in particular the long-term threat posed by Russia to Euro-Atlantic security and the 'persistent threat' of terrorism.
'Allies commit to invest 5% of GDP annually on core defence requirements as well as defence-and security-related spending by 2035 to ensure our individual and collective obligations.,' it continued.
The 5% figure is made up of 'at least' 3.5% of GDP that should be spent on 'pure' defense, with the remainder going to security and defense-related 'critical infrastructure' to ensure, the statement said, 'our civil preparedness and resilience, unleash innovation, and strengthen our defence industrial base.'
Allies will be required to submit annual plans 'showing a credible, incremental path to reach this goal,' NATO said, following pushback from some member states, particularly Spain.
Some member states have yet to meet the 2014 target to spend 2% of GDP on defense.
The historic move comes against a backdrop of tensions in the Middle East and ongoing war between Ukraine and Russia. Members have also been pushed to the new target after years of pressure across both terms of U.S. President Donald Trump for Washington's Canadian and European allies to share more of the burden of collective defense.
The alliance on Wednesday also reaffirmed its 'ironclad commitment to collective defence' as enshrined in Article 5 that an attack on one is an attack on all, following question marks over the U.S.′ reliability when it came to that central pillar of NATO.
'We remain united and steadfast in our resolve to protect our one billion citizens, defend the Alliance, and safeguard our freedom and democracy,' the statement read.
'Quantum leap'
Addressing the summit, NATO Secretary General Mark Rutte said the agreement would fuel a 'quantum leap' in the alliance's collective defense.
The deal would 'not only increase our security but also create jobs,' Rutte continued, saying allies had made 'significant commitments to meet significant threats.'
Allies recognised the severity of the threats facing the alliance, he said, and were 'united in understanding that we need to step up to stay safe.'
He said President Trump had emphasized that America is committed to NATO but expects European allies and Canada to contribute more, 'and that is exactly what we see them doing,' Rutte said.
Rutte acknowledged that this was 'Day One' of the effort needed to increase the alliance's defense capabilities and said 'we need to innovate and we need to act fast.'
'The decisions made today will make NATO much stronger, they also make nato a fairer alliance. The resolve of allies is clear: we are in this together, committed to Article 5, and we are determined to stand firm,' he said.
As he took questions from the press on his relationship with Trump, Rutte said, 'I think he deserves all the praise.'

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On June 5, 2013, a major step was taken towards the harmonization of card payments in Europe. I had the privilege of executing the very first live transaction based on the protocols and standards that would become nexo standards, in an Auchan store in Faches-Thumesnil, France, for a symbolic amount of €1. This pioneering moment, realized in partnership with Ingenico and Crédit Mutuel-CIC, under the umbrella of the OSCar consortium, marked the first operational implementation of a universal card payment solution built on SEPA standards. --> First SEPA card transaction – June 5, 2013 – France, using the French CB brand From a Merchant's Vision: Solving Fragmentation in Payments In 2012, I joined the OSCar consortium as the first merchant. Our goal was clear: overcome the fragmentation that plagued international merchants, who had to maintain different payment solutions for each country, leading to operational complexity and significant costs. At the time, the lack of harmonization across card schemes forced merchants to adapt to local protocols, resulting in fragmented acceptance, complex technical setups, and high maintenance costs. For large retailers like Auchan, a standardized, pan-European solution promised major operational efficiencies. The OSCar initiative, backed by key players such as American Express, Visa Europe, Mastercard Europe, GIE CB, Consorzio Bancomat, Ingenico, Verifone, Atos Worldline, and others, aimed to create this breakthrough by combining: SEPA-FAST payment application (common terminal application) payment application (common terminal application) EPAS ISO 20022 Acquirer protocol (standardized POS-to-acquirer communication) From France to Europe: Proving Cross-Border Interoperability Just three months after the first French transaction, the solution was successfully replicated in the Jumbo Paõ de Açucar store in Amoreiras, Lisbon. This second live pilot confirmed the cross-border capabilities of the solution — no local adaptation was required. A single, unified payment application and protocol could now be deployed across different European countries, in line with the SEPA Cards Framework objectives set by the European Payments Council (EPC). The pilot demonstrated: No impact on customer experience: payment remained seamless at checkout. on customer experience: payment remained seamless at checkout. Significant simplification of the technical architecture for merchants. of the technical architecture for merchants. Interoperability across multiple domestic and international card schemes without cobadging constraints. across multiple domestic and international card schemes without cobadging constraints. New opportunities for card issuers to extend their acceptance reach. --> SEPA card transaction – September 30, 2013 – Portugal, using Visa and Mastercard brands A Turning Point for the Entire Payment Ecosystem This milestone had profound implications for all stakeholders: Stakeholder Benefit Merchants Simplified acceptance infrastructure, lower costs, faster innovation, cross-border reach Banks / Acquirers Standardized acquiring infrastructure, reduced integration costs, pan-European services Domestic Card Schemes Extended acceptance without dependency on international brands (e.g., no mandatory cobadging). nexo standards also help domestic schemes to accelerate the deployment of new functionalities, thanks to the native integration of features already available internationally. For example, contactless acceptance and PIN Online have been supported in nexo protocols since the beginning, whereas some countries took over 10 years to roll them out. International Schemes Opportunity to simplify multi-country deployment, foster open competition Solution Providers Ability to offer standardized, scalable, SEPA-compliant solutions. Reduced development and maintenance costs, easier multi-country deployments. A single solution deployable anywhere, for everyone. Consumers Faster, consistent, and secure payment experiences across Europe The open, universal, and standardized approach also allowed merchants and acquirers to anticipate regulatory evolutions, notably around interchange fee regulations, brand choice obligations, and the broader European card payments harmonization agenda. In particular, brand choice — mandated under PSD2 and its Regulatory Technical Standards (RTS) — is natively supported by nexo protocols. Merchants and consumers can select their preferred payment brand on co-badged cards. nexo integrates and configures brand selection flows in full compliance with regulatory obligations and with guidelines from the European Payments Stakeholders Group (EPSG), as specified in the SEPA Cards Standardisation Volume (Book). Furthermore, brand choice is not only a European requirement: nexo standards enable merchants globally to address similar needs wherever brand selection is expected or mandated. nexo Standards: From a Vision to a Global Reality Following these first pilots, the initiative evolved rapidly: EPASOrg transitioned to become nexo standards in 2014 . transitioned to become . The initial protocols were refined, expanded, and formalized into a globally recognized suite of ISO 20022-based standards. nexo protocols have since been adopted by major players across Europe and beyond — not only for card payments but also supporting mobile and QR Code-based payments. They are now evolving to incorporate Instant Payments, and will likely move to integrate the Digital Euro in the future. Key Milestones: Year Evolution 2013 First live transaction (France), Cross-border validation (Portugal) 2014 Formal launch of nexo standards 2016 Publication of nexo Retailer Protocol for POS-to-ECR communication based on ISO20022 2018 Increased adoption in major payment infrastructures 2021 nexo standards began exploratory work on mobile acceptance and SoftPOS integration. 2022 Launch of nexo QR Code initiatives for dynamic merchant-presented QR acceptance 2024 Extension toward Instant Payment use cases 2025 Preparatory study on Digital Euro nexo standards now used by leading retailers, acquirers, and solution providers globally nexo standards protocols are now referenced in European regulatory frameworks and recognized by major payment organizations, reinforcing their position as a global standard for card and payment acceptance interoperability. Looking Ahead: The Open Standard for the Future of Payments Today, nexo standards is an established, open, flexible, and scalable framework. The standards are used in diverse environments, from traditional POS to SoftPOS and e-commerce acceptance. Initiatives are also exploring Instant Payment use cases based on nexo frameworks. It supports: Interoperability across multiple payment types and acceptance environments — including in-store, e-commerce, SoftPOS, cards, mobile, and QR codes. Work is actively underway to integrate Instant Payments use cases . Discussions are also progressing toward the adoption of nexo standards for the future Digital Euro , already recognized by the European Central Bank (ECB) as a key technical framework. across multiple payment types and acceptance environments — including in-store, e-commerce, SoftPOS, cards, mobile, and QR codes. Work is actively underway to . Discussions are also progressing toward the adoption of nexo standards for the , already recognized by the European Central Bank (ECB) as a key technical framework. Future-proofing with ISO 20022 compliance, worldwide migration to this modern structure providing flexibility for new and future services (cards, Instant Payment, CBDC, e-Invoicing, …). with ISO 20022 compliance, worldwide migration to this modern structure providing flexibility for new and future services (cards, Instant Payment, CBDC, e-Invoicing, …). Innovation through standardized, open APIs and cloud-native architectures (in progress) through standardized, open APIs and cloud-native architectures (in progress) Global reach with deployments in Europe, Africa, Americas, Middle East, Australia and Asia By providing a common language for the industry, nexo standards empowers all players — merchants, banks, payment schemes, and technology providers — to build a more connected, efficient, and secure payments ecosystem. Twelve years on, the journey continues — driving payments toward a more open, interoperable, and innovative world. What started with a symbolic €1 transaction has grown into a global movement shaping the future of harmonized, secure, and innovative payments worldwide.

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