Debate: Why NATO’s 5% cash spending target needs accrual transparency

August 18, 2026Public Money & ManagementOpen Access

View Full Paper

Ask AI

Bookmark

Share

Key Points

To examine NATO's proposed target for allies to allocate 5% of GDP toward defense by 2035 and assess why cash-based spending targets require accrual accounting transparency.
Evaluated the proposed 2035 NATO defense commitment requiring 5% of GDP expenditure, comprising at least 3.5% for core defense and up to 1.5% for broader security.
Analyzed the structural differences and reporting incentives between cash-based spending targets and accrual accounting standards across member states.
Demonstrated that pure cash-based spending metrics obscure long-term military liabilities, future asset depreciation, and multi-year procurement commitments.
Showed that accrual transparency provides a more accurate assessment of actual defense capability and prevents misleading fiscal accounting among member nations.

Policy analysis reveals accounting limitations in NATO's 5% GDP target, highlighting the need for accrual transparency.

No abstract yet. The journal hasn't published one we can show.

No takes yet. Share an insight, caveat, or question.

F.D.J. van Schaik (2026) studied this question.

View Full Paper

Ask AI

Bookmark

Share