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Sir Keir Starmer said the UK is set to increase spending on defence, security and resilience to 5% of GDP by 2035 to meet an “era of radical uncertainty” – but without promising any additional cash.

The move – part of a new spending pledge by the NATO alliance – was panned as deceptive “smoke and mirrors” by critics, who pointed to the very real risk of escalating conflict between Iran, the US and Israel, as well as Russia’s full-scale war in Ukraine.

Volodymyr Zelenskyy told Sky News the timeline for the increase was “very slow” and warned Russia could attack a NATO country within five years.

“In my view, this is slow because we believe that starting from 2030, Putin can have significantly greater capabilities,” he told chief presenter Mark Austin.

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‘Russia could attack a NATO country’

The prime minister, Donald Trump and the other leaders of NATO’s 32 member states are expected to approve the investment goal when they meet at a summit in The Hague, which opens later today.

It replaces a previous target to spend 2% of GDP purely on defence.

The announcement will be celebrated as a win for the US president, who has been demanding his allies spend more on their own defences instead of relying on American firepower.

More on Nato

Overnight, he claimed to have secured another success, declaring that Iran and Israel have agreed to a ceasefire – just hours after Iran launched missiles against two American military bases in retaliation to a US decision to attack three Iranian nuclear sites over the weekend.

Perhaps it will mean he will switch attention back to achieving a goal to end Russia’s war in Ukraine, which will be another key focus of the gathering in the Dutch capital.

NATO planners have crunched the summit down to a short main session tomorrow, with a final communique much briefer than usual – all steps designed to reduce the chance of the US president leaving early.

He is already scheduled to arrive late and last this evening, provided he turns up.

There is huge nervousness about Mr Trump’s commitment to an alliance that has been the bedrock of European security since it was founded more than 75 years ago.

He is not a fan though, and has previously accused Europe and Canada of an overreliance on American firepower for their own security, calling for them to do more to defend themselves.

British Prime Minister Keir Starmer and U.S. President Donald Trump shake hands during a joint press conference in the East Room at the White House, February 27, 2025 in Washington, D.C., U.S. Carl Court/Pool via REUTERS
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Trump is expected to join Starmer and fellow leader NATO leaders at The Hague. Pic: Reuters

This pressure has arguably been a bigger motivator in prompting certain allies to agree to spend more on their militaries than the threat they say is posed by Russia, Iran, China and North Korea.

Spain’s position could create friction this week. The Spanish prime minister, while agreeing to the new investment goal, has said his country is not obliged to meet it.

The UK was also slow to say yes – a stance that was at odds with a defence review endorsed by Sir Keir that was centred around a “NATO-first” policy.

As well as agreeing to the defence and security investment goal, the British government is also publishing a new national security strategy on Tuesday that will highlight the importance of a wider definition of what constitutes security, including energy, food and borders.

There will also be a focus on a whole-of-society approach to resilience in an echo of the UK’s Cold War past.

A view shows the venue of the upcoming NATO summit, in The Hague, Netherlands June 23, 2025. REUTERS/Christian Hartmann
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Preparations for the NATO summit at The Hague. Pic: Reuters

It described the commitment to invest in defence, security and national resilience as an aligning of “national security objectives and plans for economic growth in a way not seen since 1945”.

Sir Keir said: “We must navigate this era of radical uncertainty with agility, speed and a clear-eyed sense of the national interest to deliver security for working people and keep them safe.

“That’s why I have made the commitment to spend 5% of GDP on national security. This is an opportunity to deepen our commitment to NATO and drive greater investment in the nation’s wider security and resilience.”

The funding will be split, with 3.5% of GDP going on core defence and 1.5% on homeland security and national resilience – a new and so far less clearly defined criteria.

Progress on investment will be reviewed in 2029.

Ukrainian President Volodymyr Zelenskiy shakes hands with British Prime Minister Keir Starmer at 10 Downing Street, in London, Britain June
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Starmer today met with Zelenskyy at Downing Street. Pic: Reuters

The defence goal is higher than the government’s current ambition to lift defence expenditure to 3% of GDP by 2034, from 2.3% currently.

The only solid commitment is to spend 2.6% on defence by 2027 – a figure that has been boosted by the addition of the whole of the budget for the intelligence agencies.

This level of intelligence spending had not previously been included and has drawn criticism from defence experts because it is not the same as tanks, artillery and troops.

Read more:
How much damage did US inflict on Iran?
UK could send further capabilities to Middle East, minister says

The government, in its statement, is now focusing on an even higher-sounding number, claiming that it will hit 4.1% of the new NATO target by 2027.

However, this is merely based on adding the new 1.5% spending goal for “resilience and security” to the already stated 2.6% defence spending pledge.

A Downing Street spokesperson was unable immediately to say how much of GDP is currently spent on whatever is included in the new resilience category.

It could include pre-announced investment in civil nuclear energy as well as infrastructure projects such as roads and railways.

For the UK, 1.5% of GDP is about £40bn – a significant chunk of national income.

Sir Ben Wallace, a former Conservative defence secretary, accused the government of “spin” over its spending pledge because it does not include any new money anytime soon.

“The threat to our country is real not spin,” he told Sky News.

“This government thinks it can use smoke and mirrors to deceive the public and Donald Trump. This is an insult to our troops who will see no significant new money. It fools no one.”

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Gensler separates Bitcoin from pack, calls most crypto ‘highly speculative’

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Gensler separates Bitcoin from pack, calls most crypto ‘highly speculative’

Former US Securities and Exchange Commission Chair Gary Gensler renewed his warning to investors about the risks of cryptocurrencies, calling most of the market “highly speculative” in a new Bloomberg interview on Tuesday.

He carved out Bitcoin (BTC) as comparatively closer to a commodity while stressing that most tokens don’t offer “a dividend” or “usual returns.”

Gensler framed the current market backdrop as a reckoning consistent with warnings he made while in office that the global public’s fascination with cryptocurrencies doesn’t equate to fundamentals.

“All the thousands of other tokens, not the stablecoins that are backed by US dollars, but all the thousands of other tokens, you have to ask yourself, what are the fundamentals? What’s underlying it… The investing public just needs to be aware of those risks,” he said.

Gensler’s record and industry backlash

Gensler led the SEC from April 17, 2021, to Jan. 20, 2025, overseeing an aggressive enforcement agenda that included lawsuits against major crypto intermediaries and the view that many tokens are unregistered securities.

Related: House Republicans to probe Gary Gensler’s deleted texts

The industry winced at high‑profile actions against exchanges and staking programs, as well as the posture that most token issuers fell afoul of registration rules.

Gary Gensler labels crypto as “highly speculative.” Source: Bloomberg

Under Gensler’s tenure, Coinbase was sued by the SEC for operating as an unregistered exchange, broker and clearing agency, and for offering an unregistered staking-as-a-service program. Kraken was also forced to shut its US staking program and pay a $30 million penalty.

The politicization of crypto

Pushed on the politicization of crypto, including references to the Trump family’s crypto involvement by the Bloomberg interviewer, the former chair rejected the framing.

“No, I don’t think so,” he said, arguing it’s more about capital markets fairness and “commonsense rules of the road,” than a “Democrat versus Republican thing.”

He added: “When you buy and sell a stock or a bond, you want to get various information,” and “the same treatment as the big investors.” That’s the fairness underpinning US capital markets.

Related: Coinbase files FOIA to see how much the SEC’s ‘war on crypto’ cost

ETFs and the drift to centralization

On ETFs, Gensler said finance “ever since antiquity… goes toward centralization,” so it’s unsurprising that an ecosystem born decentralized has become “more integrated and more centralized.”

He noted that investors can already express themselves in gold and silver through exchange‑traded funds, and that during his tenure, the first US Bitcoin futures ETFs were approved, tying parts of crypto’s plumbing more closely to traditional markets.

Gensler’s latest comments draw a familiar line: Bitcoin sits in a different bucket, while most other tokens remain, in his view, speculative and light on fundamentals.

Even out of office, his framing will echo through courts, compliance desks and allocation committees weighing BTC’s status against persistent regulatory caution of altcoins.

Magazine: Solana vs Ethereum ETFs, Facebook’s influence on Bitwise — Hunter Horsley