What are the key challenges facing NATO?

WorldPolitics
3 Jul 2026 • 7:16 PM MYT
Media Selangor (EN)
Media Selangor (EN)

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What are the key challenges facing NATO?

BRUSSELS, July 3 - North Atlantic Treaty Organisation (NATO) leaders gathering for a summit in Ankara, Turkiye, on July 7 and July 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.

Here is a look at the main challenges facing NATO in the months and years to come:

Image from: What are the key challenges facing NATO?
United States President Donald Trump seen during his meeting with European Commission President Ursula von der Leyen in Turnberry, Scotland, the United Kingdom, on July 27, 2025. - Picture by REUTERS

Keeping Trump in

NATO officials say one of their primary goals is to maintain unity and keep the United States (US) committed to the alliance’s Article 5, which states that an attack on one member is an attack on all.

The alliance faced two crises this year, which have fuelled tensions 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 war in Iran.

Trump branded the alliance a "paper tiger" and said he was considering withdrawing from NATO. Its 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.

Image from: What are the key challenges facing NATO?
An F-16 fighter jet takes off during a media day of Nato’s ‘Air Defender 23’ military exercise at the United States’ Spangdahlem Air Base near the Germany-Belgium border in Spangdahlem, Germany, on June 14, 2023. - Picture by REUTERS

Burden-shifting

The Trump administration has pushed European governments to take on primary responsibility for Europe's conventional defence as Washington seeks to dedicate more resources to the Indo-Pacific.

Some changes are already underway: 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 their defence. But some have also questioned the US approach, arguing that a transition requires time and raising concerns about the unpredictability of policy coming from Washington.

Image from: What are the key challenges facing NATO?
Euro, Hong Kong dollar, US dollar, Japanese yen, pound and Chinese 100 yuan banknotes are seen in this picture illustration, in Beijing, China, on January 21, 2016. - Picture by REUTERS

Spending more

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 significant increase in defence spending that Trump demanded, pledging to spend five per cent of their gross domestic product (GDP) on defence and defence-related measures within a decade.

Countries pledged to spend 3.5 per cent of GDP on core defence - such as troops and weapons - and 1.5 per cent on broader defence-related measures.

NATO's European allies and Canada increased defence spending by 20 per cent in real terms in 2025 compared with the previous year, according to alliance data. But not everyone is on a trajectory to meet the new goals, and a number of governments are starting to run into political difficulties with defence spending.

Image from: What are the key challenges facing NATO?
A steelworker of ThyssenKrupp stands amid sparks of raw iron coming from a blast furnace at a ThyssenKrupp steel factory in Duisburg, western Germany, on November 14, 2022. - Picture by REUTERS

Industry

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. But some officials have expressed frustration that production has not increased as quickly as they had hoped and that it still takes years to fulfil some orders.

NATO's leadership has called on industry to work together, open new production lines and deliver more quickly.

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A street cleaner walks near sculptures at the foot of skyscrapers of the Moscow International Business Centre, also known as Moskva-City, in Moscow, Russia, on October 2, 2025.

Deterring Russia

NATO leaders meeting in Ankara are expected to reiterate that Russia poses a long-term threat to Euro-Atlantic security.

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.

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Fire and smoke rise following an explosion during a missile and drone strike amid Russia's attack on Ukraine in Kyiv, Ukraine, on May 24, 2026.

Ukraine

European NATO members are continuing to finance aid for Kyiv, more than four years since Russia’s full-scale invasion.

Money is channelled in various ways, including bilateral assistance, a European Union loan, and the Prioritised Ukraine Requirements List initiative, in which European countries pay to supply Ukraine with US weapons.

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 European governments are contributing disproportionately more than others.

Image from: What are the key challenges facing NATO?
A member of the White Angel unit of Ukrainian police officers, who evacuate people from the front-line towns and villages, checks an area for residents, amid Russia’s attack on Ukraine, in Dobropillia, Donetsk, Ukraine, on December 9, 2025. - Picture by REUTERS
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