The statement has the green light from all 32 NATO members, diplomats said, but will only become official when it is approved by leaders including US President Donald Trump at their summit in The Hague on Wednesday.
Spanish Prime Minister Pedro Sanchez had blocked an earlier version of the text, saying that committing to a five per cent target would be unreasonable and counterproductive. Spain spent 1.24 per cent of GDP on defence in 2024, according to NATO estimates
Diplomats overcame Sanchez's objections by adjusting the text on the spending pledge, changing the language from "we commit" to "allies commit", diplomats said on Sunday. That allowed Sanchez to claim the commitment would not apply to Spain.
"We fully respect the legitimate desire of other countries to increase their defence investment, but we are not going to do so," Sanchez said in an address on Spanish television Sunday.
NATO operates by consensus so all of its 32 members have to approve a statement for it to be adopted.
NATO officials argue that big defence spending increases are needed to counter a growing threat from Russia and to allow Europe to take on more responsibility for its own security as the United States shifts its military focus to China.
The alliance's current defence spending target is two per cent of GDP but Trump insisted it should rise to five per cent - although he suggested on Friday that target should not apply to the United States.
Under a plan by NATO boss Mark Rutte, countries would reach five per cent of GDP by boosting their core defence spending goal from two to 3.5 per cent and spending a further 1.5 per cent on related items like adapting roads and bridges for military vehicles and cyber security.
Rutte had originally proposed countries meet the new target by 2032 but the deadline in the final text is 2035, according to diplomats. There will also be a review of the target in 2029.
