British Army vehicles being loaded on to a ship in preparation for Nato's Steadfast Defender, the biggest war games since the Cold War. AFP
British Army vehicles being loaded on to a ship in preparation for Nato's Steadfast Defender, the biggest war games since the Cold War. AFP
British Army vehicles being loaded on to a ship in preparation for Nato's Steadfast Defender, the biggest war games since the Cold War. AFP
British Army vehicles being loaded on to a ship in preparation for Nato's Steadfast Defender, the biggest war games since the Cold War. AFP

Nato declares record military spending in Europe in rebuke to Trump


Tim Stickings
  • English
  • Arabic

Nato on Wednesday announced record sums being poured into Europe’s militaries as it seeks to persuade Donald Trump that the US's allies are not shirking their responsibilities.

A record 18 of 31 Nato allies will meet the key goal of spending 2 per cent of their economic might on defence this year, the alliance’s Secretary General Jens Stoltenberg said, up from six in 2014.

Europe’s 29 Nato members will collectively hit the target by spending $380 billion on their armed forces, he said, amounting to more than 2 per cent of their combined GDP.

The US spent almost $900 billion on defence last year, more than the rest of Nato combined, and the imbalance with European partners has long been one of Mr Trump's prime grievances.

But Mr Trump’s latest comments on the US election campaign trail, suggesting that he would “encourage” Russia to attack delinquent payers if he becomes president again, were regarded as his most alarming yet.

Rebuking Mr Trump without mentioning him by name, Mr Stoltenberg said any hint that Nato’s Article 5 mutual defence pledge no longer holds true weakens the security of its members.

“The whole idea of Nato is that an attack on one ally will trigger a response from the whole alliance. As long as we stand behind that message together we prevent any military attack on any ally,” he said.

“We have done so for decades because our deterrence is credible. Any suggestion that we are not standing up for each other, that we are not going to protect each other, that does undermine the security of all of us.”

Nato's Secretary General Jens Stoltenberg said Europe and Canada had significantly increased investment in their militaries. AFP
Nato's Secretary General Jens Stoltenberg said Europe and Canada had significantly increased investment in their militaries. AFP

President Joe Biden also strongly rejected Mr Trump’s comments, calling them “dumb, shameful, dangerous and un-American”. Like many others, he pointed out that the transatlantic alliance is a two-way street and that Article 5 has only ever been invoked to defend the US, after 9/11.

While Mr Trump likes to take credit for Europe’s increased spending, Mr Stoltenberg said the latest reinforcement was triggered by Russia’s 2022 invasion of Ukraine.

The 2 per cent pledge dates back to Russia’s annexation of Crimea in 2014, which pushed Nato countries to reverse a long decline in military spending after the end of the Cold War.

Germany revealed on Wednesday it expects to hit 2 per cent for the first time since the early 1990s, after it approved €100 billion ($107.01 billion) of off-the-books spending to upgrade ageing military equipment.

Donald Trump clashed with Nato leaders during his presidency as he demanded they spend more on defence. Reuters
Donald Trump clashed with Nato leaders during his presidency as he demanded they spend more on defence. Reuters

Mr Stoltenberg did not reveal which countries are still behind the target, but said spending had risen an unprecedented 11 per cent in a year in Europe and Canada (in other words, the 30 non-US members of Nato).

“We are making real progress. European allies are spending more. However, some allies still have a way to go,” he said.

Mr Trump’s return to the fray is also affecting Nato’s support for Ukraine, with US aid to help fight off Russia held up in Congress by supporters of the former president.

Defence ministers are meeting in Brussels on Wednesday as Nato holds its largest military exercise since the Cold War, with about 91,000 troops staging months of war games in several countries.

The Steadfast Defender drill is a “clear demonstration of our capabilities” and Nato “will continue to ensure that there is no room for miscalculation” in the Kremlin, Mr Stoltenberg said.

Nato through the years - in pictures

Key changes

Commission caps

For life insurance products with a savings component, Peter Hodgins of Clyde & Co said different caps apply to the saving and protection elements:

• For the saving component, a cap of 4.5 per cent of the annualised premium per year (which may not exceed 90 per cent of the annualised premium over the policy term). 

• On the protection component, there is a cap  of 10 per cent of the annualised premium per year (which may not exceed 160 per cent of the annualised premium over the policy term).

• Indemnity commission, the amount of commission that can be advanced to a product salesperson, can be 50 per cent of the annualised premium for the first year or 50 per cent of the total commissions on the policy calculated. 

• The remaining commission after deduction of the indemnity commission is paid equally over the premium payment term.

• For pure protection products, which only offer a life insurance component, the maximum commission will be 10 per cent of the annualised premium multiplied by the length of the policy in years.

Disclosure

Customers must now be provided with a full illustration of the product they are buying to ensure they understand the potential returns on savings products as well as the effects of any charges. There is also a “free-look” period of 30 days, where insurers must provide a full refund if the buyer wishes to cancel the policy.

“The illustration should provide for at least two scenarios to illustrate the performance of the product,” said Mr Hodgins. “All illustrations are required to be signed by the customer.”

Another illustration must outline surrender charges to ensure they understand the costs of exiting a fixed-term product early.

Illustrations must also be kept updatedand insurers must provide information on the top five investment funds available annually, including at least five years' performance data.

“This may be segregated based on the risk appetite of the customer (in which case, the top five funds for each segment must be provided),” said Mr Hodgins.

Product providers must also disclose the ratio of protection benefit to savings benefits. If a protection benefit ratio is less than 10 per cent "the product must carry a warning stating that it has limited or no protection benefit" Mr Hodgins added.

The Library: A Catalogue of Wonders
Stuart Kells, Counterpoint Press

UAE currency: the story behind the money in your pockets
The specs

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Power: 620hp from 5,750-7,500rpm
Torque: 760Nm from 3,000-5,750rpm
Transmission: Eight-speed dual-clutch auto
On sale: Now
Price: From Dh1.05 million ($286,000)

Infiniti QX80 specs

Engine: twin-turbocharged 3.5-liter V6

Power: 450hp

Torque: 700Nm

Price: From Dh450,000, Autograph model from Dh510,000

Available: Now

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BUNDESLIGA FIXTURES

Friday (All UAE kick-off times)

Borussia Dortmund v Eintracht Frankfurt (11.30pm)

Saturday

Union Berlin v Bayer Leverkusen (6.30pm)

FA Augsburg v SC Freiburg (6.30pm)

RB Leipzig v Werder Bremen (6.30pm)

SC Paderborn v Hertha Berlin (6.30pm)

Hoffenheim v Wolfsburg (6.30pm)

Fortuna Dusseldorf v Borussia Monchengladbach (9.30pm)

Sunday

Cologne v Bayern Munich (6.30pm)

Mainz v FC Schalke (9pm)

Key facilities
  • Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
  • Premier League-standard football pitch
  • 400m Olympic running track
  • NBA-spec basketball court with auditorium
  • 600-seat auditorium
  • Spaces for historical and cultural exploration
  • An elevated football field that doubles as a helipad
  • Specialist robotics and science laboratories
  • AR and VR-enabled learning centres
  • Disruption Lab and Research Centre for developing entrepreneurial skills
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Starring: Elizabeth Olsen, Paul Bettany

Directed by: Matt Shakman

Rating: Four stars

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What vitamins do we know are beneficial for living in the UAE

Vitamin D: Highly relevant in the UAE due to limited sun exposure; supports bone health, immunity and mood.Vitamin B12: Important for nerve health and energy production, especially for vegetarians, vegans and individuals with absorption issues.Iron: Useful only when deficiency or anaemia is confirmed; helps reduce fatigue and support immunity.Omega-3 (EPA/DHA): Supports heart health and reduces inflammation, especially for those who consume little fish.

In numbers: PKK’s money network in Europe

Germany: PKK collectors typically bring in $18 million in cash a year – amount has trebled since 2010

Revolutionary tax: Investigators say about $2 million a year raised from ‘tax collection’ around Marseille

Extortion: Gunman convicted in 2023 of demanding $10,000 from Kurdish businessman in Stockholm

Drug trade: PKK income claimed by Turkish anti-drugs force in 2024 to be as high as $500 million a year

Denmark: PKK one of two terrorist groups along with Iranian separatists ASMLA to raise “two-digit million amounts”

Contributions: Hundreds of euros expected from typical Kurdish families and thousands from business owners

TV channel: Kurdish Roj TV accounts frozen and went bankrupt after Denmark fined it more than $1 million over PKK links in 2013 

TV: World Cup Qualifier 2018 matches will be aired on on OSN Sports HD Cricket channel

Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

Pros%20and%20cons%20of%20BNPL
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Living in...

This article is part of a guide on where to live in the UAE. Our reporters will profile some of the country’s most desirable districts, provide an estimate of rental prices and introduce you to some of the residents who call each area home.

THE BIO

Bio Box

Role Model: Sheikh Zayed, God bless his soul

Favorite book: Zayed Biography of the leader

Favorite quote: To be or not to be, that is the question, from William Shakespeare's Hamlet

Favorite food: seafood

Favorite place to travel: Lebanon

Favorite movie: Braveheart

Juliet, Naked
Dir: Jesse Peretz
Starring: Chris O'Dowd, Rose Byrne, Ethan Hawke​​​​​​​
​​​​​​​Two stars

Lexus LX700h specs

Engine: 3.4-litre twin-turbo V6 plus supplementary electric motor

Power: 464hp at 5,200rpm

Torque: 790Nm from 2,000-3,600rpm

Transmission: 10-speed auto

Fuel consumption: 11.7L/100km

On sale: Now

Price: From Dh590,000

Red flags
  • Promises of high, fixed or 'guaranteed' returns.
  • Unregulated structured products or complex investments often used to bypass traditional safeguards.
  • Lack of clear information, vague language, no access to audited financials.
  • Overseas companies targeting investors in other jurisdictions - this can make legal recovery difficult.
  • Hard-selling tactics - creating urgency, offering 'exclusive' deals.

Courtesy: Carol Glynn, founder of Conscious Finance Coaching

Updated: February 14, 2024, 1:11 PM