Beyond defence and deterrence: Challenges ahead for Nato
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- July 3, 2026
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North Atlantic Treaty Organisation (Nato) leaders gathering for a summit in Ankara on July 7-8 will discuss a host of challenges facing the alliance, from Europe taking on more responsibility for the continent’s security to boosting defence industrial production. Some officials worry the Iran war could overshadow the gathering, but hope leaders will remain focused on the alliance’s core business: defence and deterrence. Nato officials say one of their primary goals is to maintain unity and keep the US committed to the alliance’s Article 5 clause, which specifies that an attack on one of its members is an attack on all. The alliance faced two crises this year which have fueled tension in the transatlantic relationship: US President Donald Trump’s demands for ownership of Greenland, an autonomous territory of Nato member Denmark, and his anger at Nato allies over their response to the Iran war. The US president has branded the alliance a “paper tiger” and said he was considering quitting Nato. The alliance’s secretary-general, Mark Rutte, has sought to smooth over tensions, using a mix of flattery and data to persuade Trump that European Nato members are fulfilling their promises. The Trump administration has pushed European governments to take on primary responsibility for the conventional defence of Europe as Washington seeks to dedicate more resources to the Indo-Pacific. Some changes are already under way: Washington has decided to shrink the pool of US military capabilities available to Nato in a crisis, and European Nato members have filled almost all the gaps. US Defence Secretary Pete Hegseth has also announced a new review of America’s troop deployments in Europe and threatened to withhold some US dues to Nato if “free-riding” allies did not meet their defence spending commitments. European officials say they are working to step up on defence. European Nato members and Canada are under significant pressure to boost defence investment both to improve deterrence and defence against Russia and to demonstrate to Trump that they are taking his demands for burden-shifting seriously. At a summit in the Hague last year, Nato leaders backed the big increase in defence spending that Trump demanded, pledging to spend 5% of GDP on defence and defence-related measures within a decade. Countries pledged to spend 3.5% of GDP on core defence – such as troops and weapons – and 1.5% on broader defence-related measures. Nato’s European allies and Canada increased defence spending by 20% in 2025 compared with the previous year in real terms, according to alliance data. With European Nato countries boosting defence investment, a major challenge for the alliance is how to turn money into new military capabilities in a short timeframe. In Ankara, Nato members are expected to announce tens of billions of dollars in new contracts. However, some officials have expressed frustration that production has not increased at the pace they had hoped. Nato’s leadership has called on industry to work together, open new production lines and deliver more quickly. While alliance officials say Russia is grappling with significant economic problems and Ukraine has strengthened its position, Rutte has cautioned that nearly half of Russia’s state budget is now dedicated to defence and that the alliance cannot be naive about Moscow. European Nato members are continuing to send aid to Kyiv, more than four years since Russia’s invasion. While most European leaders say they are committed to continuing to support Kyiv, sustaining a high level of funding remains a challenge amid other demands on national budgets and concern in some capitals that some governments are contributing more than others. — Reuters
