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The Indicator from Planet Money

Europe's NATO members take an economic hit

The Indicator from Planet Money

NPR

Business

4.79.2K Ratings

🗓️ 27 February 2025

⏱️ 11 minutes

🧾️ Download transcript

Summary

When it comes to defense, one thing looks certain: European members of the North Atlantic Treaty Organization (NATO) are going to have to pay more. Countries that are struggling economically will soon need to spend hundreds of billions of dollars. Can they do it?

Related episodes:
Can Europe fund its defense ambitions? (Apple / Spotify)
The weapons supply chain

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Transcript

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0:00.0

NPR. This is the indicator from Planet Money. I'm Waylon Wong. And I'm Patty Hirsch. In the wake of the Trump

0:17.0

administration wrecking crew's visit to Europe two weeks ago, European politicians

0:21.3

and bureaucrats are desperately trying to figure out what the future of their relationships

0:25.5

with the US look like. The UK Prime Minister is in the White House today trying to get a

0:29.7

handle on it. One thing that looks increasingly certain, when it comes to defence, members

0:34.5

of the North Atlantic Treaty Organisation, which of course includes a lot of

0:38.7

European nations, are going to have to pay more. For years, President Trump has complained that many

0:44.8

NATO members have been getting a free ride. Yeah, well, that ride appears to be coming to an end.

0:50.3

Trump's envoys signaled not only that they will be insisting on all NATO members meeting their obligations,

0:56.1

but they want to see the threshold raised from 2 to 5% of GDP.

1:00.6

We're talking about hundreds of billions of dollars being spent by countries that are already struggling economically.

1:07.0

On today's show, we'll talk about where all of that money might come from.

1:11.7

This message comes from Wise, the app for doing things in other currencies.

1:16.4

Sending or spending money abroad, hidden fees may be taking a cut.

1:20.5

With Wise, you can convert between up to 40 currencies at the mid-market exchange rate.

1:26.0

Visit wise.com. TNCs apply.

1:29.7

Support for NPR and the following message come from Bowling Branch.

1:33.6

Change your sleep with the softness of Bowling Branch's 100% organic cotton sheets.

1:38.8

Feel the difference with 15% off your first set of sheets at bollandbranch.com with code NPR.

1:44.7

Exclusions apply. See site for details.

1:49.2

The hits to America's relations with Europe came hard and fast. First, there was the U.S.

1:54.5

Defense Secretary Pete Higzeth telling NATO that President Trump wants them to crank up defense

...

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