Nato Secretary General Jens Stoltenberg, British Prime Minister Theresa May and US President Donald Trump arrive for a working dinner at the Parc du Cinquantenaire in Brussels on July 11, 2018. AFP
Nato Secretary General Jens Stoltenberg, British Prime Minister Theresa May and US President Donald Trump arrive for a working dinner at the Parc du Cinquantenaire in Brussels on July 11, 2018. AFP

Trump shocks Nato allies with demand they double their defence budgets



Nato leaders held an emergency meeting on Thursday after US President Donald Trump demanded that members immediately increase and ultimately double their defence spending.

Nato secretary general Jens Stoltenberg "has therefore convened a meeting in Atlantic Council format, which involves all 29 countries in the alliance", a source said.

Mr Trump said after the meeting that his demands had made Nato stronger than ever. Speaking at a news conference at Nato headquarters in Brussels, Mr Trump said the alliance was now “very unified” after members reacted positively to his demand for greater contributions at the meeting on spending.

His statement came after reports that he had threatened to “do his own thing” and hinted at pulling the US out of the alliance.

“The people have stepped up today like they have never stepped up before. We had a really great meeting today. Everybody in that room ... agreed to pay more, and they agreed to pay it more quickly,” he said.

“Yesterday, I let them know that I was extremely unhappy with what was happening,” he said. “Now we have a strong Nato. Much stronger than it was two days ago.”

German Chancellor Angela Merkel said told reporters that "there was a clear commitment to Nato by all" at an emergency session of the military alliance.

The US president requested allies increase their spending to 2 per cent of GDP immediately, instead of by 2024, and eventually double spending to 4 per cent.

Mr Trump made his demand public in a tweet on Thursday, confirming what he reportedly told Nato leaders at a private dinner in Brussels on Wednesday night.

“All Nato nations must meet their 2 per cent commitment, and that must ultimately go to 4 per cent,” the president said.

His call for a doubling of defence budgets came even though only five of Nato's 29 members currently meet the 2 per cent threshold agreed upon by the transatlantic alliance in 2014. Poland just misses the target, spending 1.98 per cent of its GDP on defence.

The US leader wrote in an earlier tweet: “Billions of additional dollars are being spent by Nato countries since my visit last year, at my request, but it isn’t nearly enough. US spends too much. Europe’s borders are BAD!”

He had said earlier in the day that he expected alliance members to increase their contributions “immediately, not by 2025”, making reference to the wrong year intended for that target to be met.

The billionaire property magnate had condemned European allies over their contributions on social media in the buildup to the summit and in front of cameras when he arrived in the Belgian capital. But, by all accounts, he was more restrained and friendly at the formal dinner hosted at the Art and History Museum at the Cinquantenaire, despite tweeting “what good is Nato” just minutes before his arrival.

"He was in a good mood, he said Europe was a continent he appreciated," Luxembourg's Prime Minister Xavier Bettel said. "We didn't know what to expect, it was a positive outcome."

But Mr Trump's demand for such a vast amount of money to be pumped into the alliance and defence of Europe shocked observers and leaders alike.

“This is insane. Trump is officially calling for most of Europe to more than double their defence budgets – which would be an enormous militarisation of Europe well beyond even what the United States spends on defence,” Brian Klaas, political scientist at the London School of Economics, said on Twitter.

Canadian Prime Minister Justin Trudeau said on Tuesday, before Mr Trump’s new demand, that Ottawa would not double its contribution from 1 per cent to 2 per cent.

On Wednesday, Mr Trump angered Germany by saying it was "captive" to Russia because of its energy supply from Russia. It shattered any hopes that officials here had of a show of transatlantic unity.

The US president then met is Polish counterpart Andrzej Duda to discuss strengthening military cooperation. Warsaw has called for US troops to be stationed in Poland permanently to protect against Russia. The meeting about Russia was in line with Mr Trump’s tactic of criticising countries who co-operate with Moscow, particularly Germany.

On Thursday, he tweeted again about German energy ties to Russia. "Germany just started paying Russia, the country they want protection from, Billions of Dollars for their Energy needs coming out of a new pipeline from Russia."

The second day of the summit is set to focus on the alliance’s mission in Afghanistan, with member states expected to recommit their resources. Nato also insisted that Georgia will one day join the alliance, in spite of separatist ambitions in sections of the country.

"Georgia will become a member of Nato," said Mr Stoltenberg.

Mr Trump will hold talks with the leaders of Ukraine, Georgia, Romania and Azerbaijan in Brussels before travelling to Britain for his first official visit as US president and then to Helsinki, Finland, where he has organised a one-on-one summit with Russian President Vladimir Putin just days after the Nato summit. As he left for Brussels, he had said that it would be his "easiest" stop.

Mr Stoltenberg is again expected to attempt to portray a united front within Nato, and sidestep any questions about Mr Trump’s new 4 per cent demand, as he did on Wednesday.

“We have agreed that we're committed to the pledge of increasing defense spending to 2 per cent," he said after a meeting with Mr Trump. "So let's start with that.”

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The number of Chinese people living in Dubai: An estimated 200,000

Number of Chinese people in International City: Almost 50,000

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Daily visitors to Dragon Mart in 2010: 20,000

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At a glance

Global events: Much of the UK’s economic woes were blamed on “increased global uncertainty”, which can be interpreted as the economic impact of the Ukraine war and the uncertainty over Donald Trump’s tariffs.

 

Growth forecasts: Cut for 2025 from 2 per cent to 1 per cent. The OBR watchdog also estimated inflation will average 3.2 per cent this year

 

Welfare: Universal credit health element cut by 50 per cent and frozen for new claimants, building on cuts to the disability and incapacity bill set out earlier this month

 

Spending cuts: Overall day-to day-spending across government cut by £6.1bn in 2029-30 

 

Tax evasion: Steps to crack down on tax evasion to raise “£6.5bn per year” for the public purse

 

Defence: New high-tech weaponry, upgrading HM Naval Base in Portsmouth

 

Housing: Housebuilding to reach its highest in 40 years, with planning reforms helping generate an extra £3.4bn for public finances

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Dubai launched the pilot phase of its real estate tokenisation project last month.

The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.

Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.

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Hydrogen: Market potential

Hydrogen has an estimated $11 trillion market potential, according to Bank of America Securities and is expected to generate $2.5tn in direct revenues and $11tn of indirect infrastructure by 2050 as its production increases six-fold.

"We believe we are reaching the point of harnessing the element that comprises 90 per cent of the universe, effectively and economically,” the bank said in a recent report.

Falling costs of renewable energy and electrolysers used in green hydrogen production is one of the main catalysts for the increasingly bullish sentiment over the element.

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2. Paul Pogba - to Manchester United in 2016/17 - €105m
3. Gareth Bale - to Real Madrid in 2013/14 - €101m
4. Cristiano Ronaldo - to Real Madrid in 2009/10 - €94m
5. Gonzalo Higuain - to Juventus in 2016/17 - €90m
6. Neymar - to Barcelona in 2013/14 - €88.2m
7. Romelu Lukaku - to Manchester United in 2017/18 - €84.7m
8. Luis Suarez - to Barcelona in 2014/15 - €81.72m
9. Angel di Maria - to Manchester United in 2014/15 - €75m
10. James Rodriguez - to Real Madrid in 2014/15 - €75m

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