NATO Summit 2025: What It Means for Defence Procurement and Tech Stakeholders
Written By
Partner
UK
As a Partner in the Tech Transactions team, I primarily advise clients on technology contracts across the Technology and Defence sectors. I focus on emerging and cutting edge technology (Artificial Intelligence in particular), more 'traditional' defence contracting, and the intersection of the two - helping clients navigate the rapidly evolving Defence Tech sector.
Partner
UK
As a London-based partner in our Commercial practice, I support clients at the intersection of government and business.
Partner
UK
I am a specialist in outsourcing and large scale technology projects and co-head the firm's Technology Transactions and International Outsourcing practice groups.
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The NATO Summit in The Hague (24–25 June 2025) has reshaped the defence and security agenda for the decade ahead. With Allies pledging to increase defence spending and fast-track innovation, the outcomes of this summit will significantly impact defence procurement, tech development, and investment strategies across NATO member states.
Hike in Spending Baseline: 5% of GDP
As for the centrepiece, NATO’s 32 members have committed to spend 5% of GDP annually on defence by 2035. This includes:
- A minimum of 3.5% on core defence requirements for Allied militaries and to meet the NATO Capability Targets.
- Up to 1.5% on civil preparedness, critical infrastructure, cybersecurity, and innovation.
This is a clear shift from the 2% benchmark that had defined NATO defence policy for years. Governments must now draw up national implementation plans, with the first round due imminently. For businesses, this should mean increased defence procurement activity, more public money flowing into tech and infrastructure, and new compliance expectations.
Tech and Cyber at the Forefront
The summit prioritised hybrid threats like cyber attacks and infrastructure sabotage. NATO will strengthen collective deterrence across land, sea, air, cyber, and space. For defence tech companies, this translates into faster procurement of AI, cyber tools, autonomous systems, and space-based capabilities.
NATO also approved a Rapid Adoption Action Plan to bring new tech into service within 24 months of development. This is a real opportunity – but it will demand agility from defence tech firms in both R&D and regulatory compliance.
NATO’s existing innovation infrastructure, including the NATO Innovation Fund (NIF) and the Defence Innovation Accelerator for the North Atlantic (DIANA), will be central to delivering this ambition. DIANA provides testing and validation for dual-use technologies, while NIF offers equity investment in early-stage defence tech companies across the Alliance. These platforms are already playing a key role in accelerating the pipeline of deployable capability.
For businesses, especially SMEs and dual-use tech startups, the ambition is promising. But the policy detail is thin for now. The proof will be in the pudding – real impact will depend on whether member states follow through with regulatory reform and streamlined export rules.
Cross-Border Cooperation and Trade
NATO committed to removing defence trade barriers and expanding transatlantic industrial cooperation. This includes facilitating cross-border defence procurement and co-development of platforms.
How This Fits With UK, US and EU Moves
This NATO reset aligns closely with other recent developments:
- UK Strategic Defence Review 2025: Reinforces NATO-first policy.
- EU SAFE Regulation & ReArm Plan: Launches €150bn in low-cost defence loans and €800bn+ investment flexibility for member states.
Across the board, we are seeing renewed political will to invest in capability and infrastructure, with a focus on tech and industrial resilience.
What Clients Should Do Now
- Update compliance frameworks - Get ahead of new spending and reporting requirements. Be ready to show how your projects support NATO targets.
- Invest in cybersecurity - NATO is prioritising cyber defence and critical infrastructure. Ensure your solutions meet NATO standards.
- Explore transatlantic partnerships - Cross-border joint ventures and R&D projects are likely to attract support.
- Watch regulatory change - If NATO delivers on cutting trade barriers, procurement could get faster and more integrated.
- Align to NATO innovation goals -Track DIANA, the NATO Innovation Fund, and national programmes tied to NATO tech priorities.
Final Thoughts
The NATO Summit 2025 set bold ambitions. But big pledges need detailed delivery. Whether these commitments reshape defence procurement and defence tech will depend on follow-through from member states and institutions.
For now, the direction is clear: more money, more collaboration, more urgency. General counsel, procurement leads, and tech businesses should position themselves now – because the opportunity window is opening.
Will the Alliance deliver on its promise to accelerate and streamline defence modernisation? Or will fragmented national approaches slow the momentum? Either way, the sector is entering a period of intense change – and those ready to act early will have the edge.
