A new NATO agreement is set to significantly impact European defense capabilities, potentially shifting the balance of power within the alliance and providing incentives for increased defense spending among member nations. The agreement, lauded by experts, includes a commitment from allies to submit annual plans demonstrating a credible path toward achieving specified defense spending goals.

The agreement compels countries to face immense pressure to allocate more funds to their defense budgets. According to Peter Viggo Jakobsen, a lecturer at the Defense Academy’s Institute for Strategy and War Studies, several countries are already nearing the target of 3.5 percent of GDP, which will bolster defense capabilities, especially around the Baltic Sea.

Mikkel Vedby Rasmussen, a professor and researcher in security policy at the University of Copenhagen, highlights the crucial element of the agreement which lies in the commitment to annual plans that outline a step-by-step approach to reaching the set objectives. This mechanism, aligning with Denmark’s five-year defense budget cycles, ensures government leaders promise actions that extend beyond their current terms, including future administrations.

The agreement also has significant implications for Denmark. For the first time, Denmark meets the required two percent spending threshold. Moreover, the agreement addresses key priorities of the Danish government, including the inclusion of donations to Ukraine in defense spending calculations. While Denmark’s defense capabilities remain limited, its contributions to Ukraine are recognized, positioning the nation favorably within the alliance.

The new agreement will change NATO by possibly allowing Europe to have more influence within NATO. As Europe enhances its capacity to defend itself, it can be anticipated that it will wield greater influence within the alliance.