Global Economy News
LAST UPDATE: June 24, 2025
NATO’s Rutte: New baseline for allies will be to spend 5% of GDP on defense
Dutch Prime Minister Mark Rutte said that NATO will establish 5% of GDP as a new baseline defense spending target for member countries following discussions at the summit.
Insight
Rutte’s proposal marks a significant shift—raising burden-sharing expectations and testing member-state political will, especially in Europe where GDP-anchored targets have varied reception.
Spain and Rutte Locked in a Showdown on Eve of NATO Summit
Spanish PM Pedro Sánchez is resisting NATO’s proposed 5% defense spending baseline, prompting tense negotiations with Dutch leader Mark Rutte ahead of the summit (bloomberg.com).
Insight
Spain’s pushback underscores its reluctance to meet aggressive defense targets, while Rutte presses NATO unity—highlighting internal friction over burden‑sharing at a critical moment.
EU and Canada Sign Security Pact as Carney Pivots From US
The EU and Canada signed a security partnership in Brussels to boost interoperability, naval cooperation, and joint military procurement, signaling Canada’s effort to diversify beyond the U.S. .
Insight
This pact reflects Ottawa’s strategic recalibration, deepening ties with Europe and signaling a shift in defense alignment amid U.S. unpredictability.
WTO grants Chinese request for panel on Canadian tariffs, trade official says
The WTO accepted China’s request to form a dispute panel examining Canada’s additional tariffs on Chinese goods, escalating the trade conflict .
Insight
The step indicates mounting global trade tension, with China leveraging dispute mechanisms to challenge perceived Canadian protectionism—signaling a fraught path ahead for bilateral trade.
