Where has the military money gone? NATO states that Romania allocates only 1.6 percent of GDP to Defense

A NATO report shows that Romania spent only 1.6 percent of GDP on Defense in 2023, despite the fact that the US recommended that each allied country provide at least 2 percent to this sector and despite the fact that President Iohannis himself announced that Romania allocates 2.5 percent of GDP.

A report published by NATO and entitled “Defence Expenditure of NATO Countries” shows that, in 2023, Romania spent only 1.6 percent of GDP on defense, i.e. below the level recommended by NATO and the USA, which is 2 percent from GDP. Romania’s situation is all the stranger because, in recent years and especially after the moment in February 2022, when Russia attacked Ukraine, several Romanian officials, including President Iohannis, stated that Romania allocates two percent of GDP to Defense, then they came back and promised that we will allocate even 2.5 percent of GDP for Defense.

The study presented by NATO covers 30 allied countries – including Finland. The study does not include Sweden, as at the time of data collection, Sweden had not yet been validated by all NATO states as a full member of the Alliance. The last Parliament that validated Sweden’s integration into NATO was that of Hungary, on February 26, 2024. Among the 30 analyzed states, Romania is in 20th place, from the point of view of the allocated percentage of GDP. The first three positions are held by Poland (3.92%), the United States (3.24%) and Greece (3.05%). Also ahead of Romania, as percentages allocated, are, for example, the new NATO member Finland (2.46%), Hungary (2.07), Bulgaria (1.87) and even Albania (1.72). A country with a very strong army, Turkey, is placed immediately after Romania (1.58).

However, it should be remembered that between NATO countries there are large differences in terms of Gross Domestic Product (GDP), which means that, in absolute terms, Turkey allocates more money than Romania and Albania, for example, allocates less money than Romania (although Albania’s percentage is higher than Romania’s). In absolute value, Romania spent on Defense, in 2023, the sum of 25.651 million lei, which is equated in the NATO study to 5.655 million USD.

According to NATO, Romania allocated 21.9 percent of the total amount allocated to Defense for military endowment (including research and development) in 2023. The NATO recommendation for this chapter is 20 percent, so Romania complies with this recommendation.

In February 2024, US Secretary of Defense Lloyd J. Austin echoed a statement by NATO Secretary General Jens Stoltenberg. “The Secretary General forecasts that in 2024, 18 Allies will spend at least 2% of their GDP on Defense – a major improvement on 2014, when only three achieved this. Any ally that does not spend at least 2 percent of GDP on defense this year should have plans to quickly reach that target,” Lloyd J. Austin emphasized.

In Romania, former Prime Minister Florin Cîțu formulated one of the harshest criticisms of the PSD-PNL government, which he accuses of serving Russia’s interests: “HE CUT the money from equipping Romania with armaments both in 2022 and in 2023 In 2023 the CUT was so big that the least money from the budget was spent in recent years and we are at the tail of the NATO member countries. Only a coalition that works for and at the behest of Putin would have taken these decisions”, claimed Senator Cîțu in a Facebook post on March 25, 2024. Cîțu then returned to this statement, also emphasizing the fact that 70 percent from the money (however insufficient) allocated to the Romanian Army was spent not to buy weapons but to pay salaries and pensions.

Unfortunately for Romania, NATO published this study exactly when Romania celebrates 20 years since joining the Atlantic Alliance.

On October 25, 2023, on Army Day, President Iohannis claimed that Romania allocates, starting in 2023, a percentage of 2.5 percent of GDP to Defense, i.e. more than 2 percent, as it would have been allocated in 2022 .The percentage of 2 percent of GDP would have been established during the term of President Iohannis, according to a recommendation formulated by the United States.

“Starting this year, we are allocating 2.5% of GDP to Defense, and at least 20% of this budget will continue to be allocated to endowment of the armed forces. This solid base will allow us to carry out a series of programs to modernize existing equipment and equip it”

Klaus Iohannis,

The President of Romania

PNL senator Florin Cîțu, former prime minister between 2020 and 2021, believes that the current PSD-PNL government (which he calls a socialist government) and Prime Minister Marcel Ciolacu are to blame for the increase in the budget deficit and inflation, as well as the decrease in the budget that it was supposed to be allocated to Defence.

“Romanians are impoverished daily by the socialist government. At the same time, the socialist government worked to weaken Romania by cutting the defense budget. In 2023, the least amount of money was spent on defense in the last 10 years. And 70% of this money went to salaries and pensions”

Florin Cițu,

Former prime minister

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