NATO's Burden-Sharing Dispute: A Shift in Power Dynamics

NATO Defense Spending Europe U.S. Relations Power Dynamics

May 1, 20263 min readEurope

NATO's Burden-Sharing Dispute: A Shift in Power Dynamics

Europe's defense spending surge reshapes NATO's power balance.

NATO’s Burden-Sharing Fight Turns Into a Power Struggle

Washington still holds NATO’s security umbrella, but Europe’s spending surge is reducing dependence while widening disputes over strategy.

Reuters’ warning that the Atlantic alliance is creaking captures the real shift: Washington still has the hard-power leverage, but Europe is no longer arguing mainly about money — it is arguing about control.Atlantic alliance creaks as U.S. and Europe fail to see eye-to-eye | Reuters In April, the Trump administration’s confrontation over Iran spilled directly into NATO politics, with Reuters reporting U.S. anger at allies that would not fully back its military line and renewed threats around America’s role in Europe.Trump's anger over Iran thrusts NATO into fresh crisis | Reuters Turkey says US withdrawal from European security architecture could be 'destructive' | Reuters

Washington’s leverage is real — but changing

The old U.S. complaint was that Europe underpaid for its own defense. That argument is weaker than it was even a year ago. All 32 NATO members hit the 2% spending target in 2025, while Europe and Canada raised defense spending by 19% to about $574 billion; the U.S. still accounted for roughly 59% of total alliance defense expenditure, which preserves American leverage but narrows the case that Europeans are simply free-riding.NATO countries hit 2 percent of GDP spending target – POLITICO

What Washington appears to want now is not just higher spending, but strategic alignment. That is a harder demand. Reuters and other outlets reported discussion of punishing allies such as Spain over Iran, but NATO has no treaty mechanism to suspend or expel a member, making the threat political rather than legal.Trump's anger over Iran thrusts NATO into fresh crisis | Reuters Nato says 'no provision' to expel members after report US could seek to suspend Spain

Europe is rearming — and hedging

Europe’s answer is not to replace NATO. It is to build a stronger European pillar inside it. Emmanuel Macron and Kyriakos Mitsotakis said the EU’s defense push is meant to reinforce NATO, not supplant it, while pushing harder for European industrial consolidation.Leaders of France and Greece say the EU's defense splurge is no alternative to the NATO alliance | AP News Germany is moving the same way financially: Berlin approved budget targets that would lift defense spending to 3.1% of GDP in 2027, with a path toward 3.7% by 2030.Germany approves key targets for 2027 budget, higher defence spending in focus | Reuters

That benefits France’s defense-industrial agenda, Germany’s rearmament drive, and eastern allies that can now claim both higher spending and higher frontline risk. For readers tracking Global Politics, the important point is that Europe is becoming less financially dependent on the United States while remaining militarily tied to it.

What to watch next

The next decision point is the July NATO summit in Ankara, where allies will try to convert higher European spending into a new bargain over troop posture, command influence, and how far NATO should follow Washington beyond the Russia file.Turkey says US withdrawal from European security architecture could be 'destructive' | Reuters Watch three things: whether the U.S. links force levels in Europe to political compliance; whether Berlin and Paris turn spending into joint procurement; and whether dissenters such as Spain can resist pressure without paralyzing alliance business.

Originally published by Reuters.

Sources (13)

Leaders of France and Greece say the EU's defense splurge is no alternative to the NATO alliance | AP News

apnews.com

Germany approves key targets for 2027 budget, higher defence spending in focus | Reuters

reuters.com

Turkey says US withdrawal from European security architecture could be 'destructive' | Reuters

reuters.com

Europe pushes back on reported U.S. plans to punish NATO allies : NPR

npr.org

Germany faces Trump's threat to reduce US military presence in Europe | AP News

apnews.com

NATO's European allies and Canada boosted military spending by 20% in 2025 - France 24

france24.com

NATO countries hit 2 percent of GDP spending target – POLITICO

politico.eu

NATO says all countries to finally hit 2-percent spending goal

france24.com

NATO members all hit 2% target, but only 3 meet new goal

dw.com

The Nato countries that missed their defence spending targets

bbc.com

Nato says 'no provision' to expel members after report US could seek to suspend Spain

bbc.com

Trump's anger over Iran thrusts NATO into fresh crisis | Reuters

reuters.com

Spain's leader sidesteps NATO dispute over reported Pentagon email | AP News

apnews.com

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