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In a particularly stunning statistic highlighted by French political analyst François Valentin,
<><>govt-paid pensions play an outsized role in the country’s public finances
<><>they accounted for one-sixth of the ministry of defence budget last year,
<><>without them France would not meet Nato’s 2 per cent target for military spending.

FYI——NATO’s long-standing target has been for member countries to spend 2% of their Gross Domestic Product (GDP) on defense annually, a guideline established in 2014. However, NATO leaders agreed in June 2025 to more than double this to a new target of 5% of GDP by 2035.
Key Aspects of the 2% Target (now being superseded)

The 2% target was a guideline to ensure members contributed to common defense, signaling political resolve and boosting military readiness after Russia’s 2014 annexation of Crimea.

It was a benchmark, and though not legally binding, it became a focal point for public discourse and a gauge of political commitment to the alliance’s core task of European security.

This guideline included a “2/20” component, meaning 2% of GDP for defense, and at least 20% of that defense budget allocated to major equipment and research & development.
The New 5% Target

In June 2025, NATO members agreed to a new, more demanding target of 5% of GDP by 2035, as stated in a joint declaration from the summit in The Hague.

This “historic” shift reflects a renewed focus on military preparedness in the face of evolving and persistent security threats, particularly from Russia.

Allies committed to providing annual plans to show a credible, incremental path to reaching this 5% goal.