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Why NATO’s defense spending imbalance lasted for decades
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This is part five of a series examining the challenges confronting the NATO alliance.
For more than three decades, the U.S. carried the largest share of NATO’s military burden while many European allies spent far less on defense than Washington wanted.
The imbalance survived the Cold War, multiple U.S. administrations and repeated debates over burden sharing. Only in recent years — following Russia’s 2022 invasion of Ukraine and renewed pressure from President Donald Trump — have many NATO members begun significantly increasing defense spending.
So why did the gap persist for so long?
Defense analysts say the answer lies in a combination of post-Cold War optimism, domestic political priorities and an American defense umbrella that convinced much of Europe it could safely spend less on defense without sacrificing its security.
For more than three decades, the U.S. carried the largest share of NATO’s military burden while many European allies spent far less on defense than Washington wanted. (Handout / Latin America News Agency via Reuters Connect)
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«For much of the post–Cold War period, it is fair to say that Europeans underinvested in defense, partly because threats were low, and partly because a series of U.S. presidents did everything they could to convince Europeans that we would stay there forever,» Barry Posen, a professor of political science at the Massachusetts Institute of Technology, told Fox News Digital.
The collapse of the Soviet Union reinforced that mindset.
With the primary threat NATO had been created to deter suddenly gone, governments across Europe moved to collect a so-called «peace dividend,» redirecting resources toward domestic priorities and away from their militaries.
Between 1992 and 1999, defense spending among European NATO members fell 22%, helping establish a pattern of underinvestment that would persist for decades even as the United States maintained troops in Europe and continued serving as NATO’s ultimate security backstop.
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As defense spending declined, many European governments expanded or maintained social welfare systems that consumed a growing share of public budgets. Programs such as healthcare, pensions and higher education became deeply embedded in domestic politics, often making them harder to cut than military spending.
With the U.S. continuing to provide the bulk of NATO’s military power, many governments faced little immediate pressure to reverse course. Critics of the alliance’s spending imbalance argued that American taxpayers were effectively subsidizing Europe’s security, allowing allies to devote a larger share of public resources to domestic priorities.
The result was what some defense analysts describe as a «moral hazard» problem: because the U.S. commitment to NATO was viewed as ironclad, allies could spend less on their own militaries without facing the full consequences of those decisions.
«For much of the post–Cold War period, it is fair to say that Europeans underinvested in defense, partly because threats were low, and partly because a series of U.S. presidents did everything they could to convince Europeans that we would stay there forever,» Barry Posen, a professor of political science at MIT, told Fox News Digital. (AP Photo/Darko Vojinovic, File)
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Over time, that dynamic became self-reinforcing. As European militaries shrank, many allies grew increasingly dependent on American capabilities ranging from logistics and intelligence to missile defense, strategic airlift and nuclear deterrence.
«We are still having a strong, conventional U.S. presence in Europe,» NATO Secretary-General Mark Rutte said earlier in 2026, «and, of course, the nuclear umbrella as our ultimate guarantor.»
American frustration over burden sharing is nearly as old as NATO itself.
«We are still having a strong, conventional U.S. presence in Europe,» NATO Secretary-General Mark Rutte said earlier this year, «and, of course, the nuclear umbrella as our ultimate guarantor.» (Omar Havana/Getty Images)
In 1953, President Dwight D. Eisenhower warned European allies that «the American well can run dry» and pressed them to assume a larger share of the alliance’s defense burden. The issue resurfaced repeatedly over the following decades as successive administrations sought greater European contributions to collective defense.
The concern persisted long after the Cold War. In a blunt 2011 farewell speech in Brussels, then-War Secretary Robert Gates warned of a «dim if not dismal future» for NATO if European governments continued underinvesting in their militaries. Gates cautioned that there would be «dwindling appetite and patience» among American lawmakers and taxpayers to bear a disproportionate share of the alliance’s defense costs.
Yet despite decades of warnings, the underlying incentives changed little.
Washington repeatedly reaffirmed its commitment to NATO and maintained a large military presence on the continent, reducing pressure on allies to rapidly increase defense spending.
«Every administration has been pushing allies to spend more money on their own defense,» former Deputy Assistant Secretary of Defense for Europe and NATO Jim Townsend told Fox News Digital.
The issue gained renewed urgency after Russia’s annexation of Crimea in 2014, when NATO established a benchmark for members to spend at least 2% of GDP on defense. While spending gradually increased, progress remained uneven across the alliance.
«Nations slowly began going to that. But it’s been slow,» Townsend said.
For years, burden-sharing disputes followed a familiar pattern: American officials urged allies to spend more, European leaders promised improvements and NATO continued to rely heavily on American military power. What finally broke that cycle, Townsend said, was the combination of Russia’s growing aggression and Trump’s willingness to challenge assumptions that had shaped the alliance for decades.
«What really woke everyone up were two things,» Townsend said. «One was the 2022 invasion by Putin the second time. And then the second was Trump.»
Unlike previous presidents, Trump openly questioned whether the United States should defend allies that failed to meet defense spending commitments. During his first term and again during his return to office, Trump argued that NATO members were taking advantage of American taxpayers and suggested U.S. protection should not be unconditional.
Whether European leaders viewed Trump’s approach as pressure, a warning or a negotiating tactic, it altered assumptions that had shaped the alliance since the end of the Cold War and accelerated a debate that had simmered for decades.
The shift culminated at NATO’s summit in The Hague, where allies agreed to a new goal of spending 5% of GDP on defense and defense-related investments by 2035. The agreement marked a dramatic leap from NATO’s long-standing 2% benchmark and reflected a growing consensus that the alliance faced a far more dangerous security environment than the one that emerged after the Soviet Union’s collapse.
The agreement also signaled that many allies had come to the same conclusion American presidents had voiced for decades: the post-Cold War era of reduced military spending was over.
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But analysts caution that rebuilding military power is far more complicated than increasing budgets.
Europe remains dependent on the U.S. for capabilities ranging from air defense and logistics to intelligence and defense industrial capacity, Townsend said. Even as governments commit more money to defense, translating those investments into military readiness will take years.
John Byrne of Concerned Veterans for America said the challenge extends beyond equipment and spending levels.
«They don’t have the experience,» Byrne told Fox News Digital, referring to the decades in which large multinational military commands were overwhelmingly led by American officers.
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Running large coalition military operations requires years of institutional knowledge and leadership experience, he said — something that cannot be rebuilt overnight.
«You can buy equipment,» Byrne said. «You can’t instantly buy command experience.»
nato, defense, alliances, spending, russia
INTERNACIONAL
Elecciones en Colombia: Abelardo de la Espriella, el polémico «Tigre» que seduce a la ultraderecha y admira a Bukele
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It hasn’t been a great last few days for Marxist political influencer Hasan Piker.
First, as Fox News Digital reported exclusively last week, the Treasury Department’s Office of Foreign Asset Control (OFAC) sent Piker an administrative subpoena seeking financial, logistical and communications records related to his March trip to Cuba as part of an investigation into whether he violated U.S. sanctions laws against doing business with the communist regime running the island nation.
Then last night, during protests outside an Immigration and Customs Enforcement facility in Newark, N.J., hecklers confronted Piker, calling him a «f—ing fraud, » «fake-a– grifter» and «dog abuser,» telling him, «Go back to the desktop.» (Piker has denied allegations he trained his dog, Kaya, with a shock collar.)
Now, Piker told his loyal following on the gaming platform Twitch that British authorities denied his Electronic Travel Authorization, or ETA, preventing him from traveling to the United Kingdom for a series of scheduled appearances, including events at SXSW London and the Oxford Union. Approved U.S. travelers to the UK can enter the country with a simple Electronic Travel Authorization, which is easier to get then a formal visa.
«I’ve been banned from the UK,» Piker told viewers. «I’ve been to the UK on numerous occasions, and all of the things they’re complaining about now are things I’ve said before.»
He went on to say, «It’s f—ing ridiculous.»
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Hasan Piker speaks with an interviewer during a protest in New Jersey. (Michael Dorgan/Fox News Digital)
Although Fox News Digital could not confirm Piker’s claim, such a move by the UK would be significant because it would mark a potential red line that a Western government has drawn regarding the importation of extremist ideas and ideological movements that officials believe may contribute to social unrest, extremism or political violence.
At the tail end of a long livestream, Piker said he was denied entry for alleged antisemitism, which he denied, and then proceeded to lash out at Jewish organizations that he said had campaigned against his visit, claiming they wielded excessive influence over British policy.
«Israel advocacy organizations have unbelievable amounts of power over what even the United Kingdom has to say and do,» Piker said. «If you’re an avowed anti-Zionist, your travel will be restricted.»
Piker accused the UK government of bowing to pressure from pro-Israel advocacy groups and described the decision as evidence of a growing crackdown on political dissent across Western democracies.
The comments came weeks after several British Jewish organizations publicly urged the government to block Piker’s entry into the country, citing remarks they described as antisemitic and supportive of extremist groups. Piker has said he believed the U.S. deserved the 9/11 attack as «backlash» for its foreign policy decisions. The Jewish Leadership Council and Community Security Trust argued that Piker’s presence in Britain would not be «conducive to the public good,» pointing to his comments about Hamas, Hezbollah, Zionism and Orthodox Jews.
Labour MP David Taylor also called on the Home Office to revoke Piker’s visa ahead of scheduled appearances at SXSW London, arguing that his rhetoric had contributed to concerns within Britain’s Jewish community.
Punctuating his commentary about the UK decision with deep sighs, cursing and rage at suggestions from his followers, Piker repeatedly rejected accusations of antisemitism, saying criticism of Israel was being conflated with hatred of Jews. He said the decision reflected a broader trend in which governments are suppressing anti-Israel voices.
«This is straight-up fascism,» Piker said. «Being critical of Israel while combating antisemitism is not a good enough reason to bar someone entry into the country.»
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(left) Cuba’s President Miguel Diaz-Canel raises his fist next to Progressive International’s general coordinator David Adler during an event at the Cuban Institute for Friendship with the Peoples in Havana on March 21, 2026. (right) Hasan Piker joins a convoy to Cuba in March 2026. (Ernesto Mastrascusa/AFP and CodePink via Storyful)
The streamer said he had planned a week-long trip that included appearances alongside former Greek finance minister Yanis Varoufakis, a live podcast recording and an event at Oxford Union.
Varoufakis is the co-founder of the 501(c)(3) nonprofit group, Progressive International, which Piker credits with getting him to Cuba for a March aid convoy that may have violated U.S. laws. A Fox News Digital investigation chronicled how Progressive International and its co-founder David Adler have allegedly been a critical part of a foreign influence operation by the Communist Party of Cuba. Progressive International and Adler didn’t respond to a request for comment.
The U.K. government didn’t respond to a request for comment. However, in recent weeks, Home Secretary Shabana Mahmood, a critic of Israeli policies, recently revoked the travel authorization of Piker’s uncle, Cenk Uygur, founder of «The Young Turks,» after concluding his presence would not be «conducive to the public good.»
During the livestream, Piker warned that the alleged UK decision could set a precedent for other Western countries, including Australia and Canada, potentially restricting his future travel.
HASAN PIKER NAMES PRO-CCP TYCOON SINGHAM AS FINANCIER OF ‘POLITICAL MOVEMENTS’ DESPITE NONPROFIT VENEER
Hasan Piker and Jodie Evans and Neville Roy Singham (Getty Images)
«I genuinely did not think this would happen,» he said. «We’re moving into a very different timeline.»
Piker said he and his team were exploring whether he could apply for a standard visa despite the denial of the Electronic Travel Authorization, though he acknowledged it was a long shot.
Piker’s case intersects with a broader inquiry into the influence of transnational activist networks operating in the United States. During a livestream this week, Piker said that the Treasury Department’s investigation into his Cuba trip may ultimately be focused on Neville Roy Singham, an American Marxist businessman living in Shanghai who has funded a network of nonprofit organizations and activist groups that have drawn scrutiny from lawmakers and administration officials.
Among the organizations funded by Singham is CodePink, which also received a Treasury Department administrative subpoena related to its participation in the March convoy to Cuba, as well as groups such as the Party for Socialism and Liberation and the ANSWER Coalition. All three organizations openly identify with socialist or communist political traditions and have been prominent organizers of anti-Israel demonstrations across the United States since the Oct. 7, 2023, attacks by Hamas against Israel.
Critics argue that some of those demonstrations have created hostile environments for Jews in the UK, U.S., and elsewhere, including the use of slogans such as «From the river to the sea,» which calls for the elimination of Israel.
Trump administration officials are investigating the groups tied to Singham as a transnational network advancing anti-American, pro-Chinese Communist Party and anti-Western narratives while exploiting political and social divisions inside the U.S.
Lawmakers, Treasury officials and national security analysts have increasingly examined whether such networks are helping to amplify polarization, social discord, and hostility toward democratic institutions. Meanwhile, last night at the ICE protest, Piker defended the groups as led by «wonderful» people.
The debate has been particularly acute in Europe, where governments have grappled with alliances between far-left activists and Islamist organizations that have joined forces around anti-Israel activism and antisemitism. Critics argue that some of these coalitions have fomented rhetoric and violence hostile to Jews, leading to rising antisemitism in the UK, much like in the U.S.
For his part, Piker ended his podcast defiant, angry and seemingly deflated for the moment, repeating again, «Bro, they banned me from the UK,» and then finally closing the podcast, saying, «I’m done for the day.»
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investigations, uk politics, foreign policy, travel, sanctions
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El precio del petróleo volvió a subir ante la posibilidad de una extensión en las negociaciones entre Estados Unidos e Irán
El precio del petróleo subió más de un 2% impulsado por el aumento de las tensiones en Medio Oriente y por las señales de que las negociaciones entre Estados Unidos e Irán para alcanzar un acuerdo podrían extenderse más de lo previsto. A ello se sumó una nueva escalada militar entre Israel y el grupo terrorista Hezbollah, lo que reforzó la tendencia alcista del crudo en las primeras operaciones.
El barril de West Texas Intermediate (WTI), referencia para el mercado estadounidense, avanzó cerca de un 2,5% hasta situarse en torno a los 89,60 dólares. En paralelo, el Brent del mar del Norte, utilizado como referencia internacional, superó los 93 dólares por barril, con una ganancia superior al 2% respecto al cierre de la semana anterior.
El movimiento representó un cambio de tendencia respecto de los últimos días. Durante la semana pasada, los precios habían registrado una caída acumulada superior al 11% impulsada por las expectativas de un entendimiento entre Washington y Teherán que facilitara la reapertura del estrecho de Ormuz, uno de los corredores marítimos más importantes para el comercio mundial de petróleo y gas.
Sin embargo, el escenario cambió durante este fin de semana. Informaciones conocidas en Estados Unidos señalaron que la administración de Donald Trump presentó a Irán una nueva propuesta de acuerdo con condiciones más exigentes que las discutidas previamente. La noticia redujo el optimismo de los inversores sobre una solución cercana al conflicto y volvió a instalar temores sobre posibles interrupciones prolongadas en el suministro energético.
A ello se sumó el deterioro de la situación en la frontera entre Israel y el Líbano. El ejército israelí ordenó ampliar sus operaciones terrestres en territorio libanés pese a la tregua anunciada semanas atrás. La decisión alimentó la percepción de que la inestabilidad regional podría extenderse y afectar aún más las perspectivas de seguridad para las rutas energéticas de Medio Oriente.
La posibilidad de una reapertura parcial o total del Estrecho de Ormuz había contribuido a la caída reciente de los precios. Sin embargo, nuevos reportes sobre actividades militares iraníes en las aguas cercanas volvieron a alterar las expectativas. Según distintas versiones, Teherán habría incrementado la colocación de minas marítimas en la zona, un factor que podría retrasar cualquier intento de normalización del tráfico comercial incluso si se alcanzara un acuerdo político.
El analista de mercados Tony Sycamore señaló que las preocupaciones sobre la seguridad en Ormuz continúan siendo determinantes para la evolución de los precios.
“Incluso si se alcanza un acuerdo, no traerá una avalancha de suministro”, afirmó. Según explicó, cualquier reapertura requerirá operaciones de seguridad y limpieza que podrían prolongarse durante semanas.
Las tensiones geopolíticas lograron eclipsar incluso los datos económicos procedentes de China. Durante el fin de semana se conocieron indicadores que mostraron un estancamiento de la actividad manufacturera en la segunda economía mundial, una señal que normalmente habría ejercido presión bajista sobre los precios del petróleo debido a las perspectivas de menor demanda.
Los inversores, sin embargo, concentraron su atención en los riesgos de oferta. La preocupación por posibles interrupciones en el flujo de crudo desde Medio Oriente terminó pesando más que las señales de desaceleración económica global.
Mientras continúan las negociaciones diplomáticas, el mercado energético permanece pendiente de cualquier avance entre Estados Unidos e Irán. También sigue de cerca la evolución de los combates en el sur del Líbano y la situación en el estrecho de Ormuz. En un contexto donde una parte significativa del suministro mundial depende de la estabilidad de la región, cualquier cambio político o militar tiene capacidad inmediata para alterar los precios internacionales del petróleo.
(Con información de AFP y Reuters)
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