Hasta la vista, Budget Deficit? Trump's 5% NATO Demand: Is This Judgment Day for European Wallets?

Trump's Call to Arms (…and Wallets)

Listen up people. This isn't some 'I'll be back' promise; this is real life. Trump wants NATO to cough up 5% of their GDP for defense. Five percent! Greece's Prime Minister Kyriakos Mitsotakis is basically saying 'Come with me if you want to live… solvently.' He told CNBC that hitting that 5% mark is like trying to outrun a T 1000 – nearly impossible. And let me tell you I know a thing or two about impossible missions.

3.5% is the New 2%

Mitsotakis suggests a more 'realistic' 3.5%. Apparently that's the ceiling before things get shall we say terminatory for their economies. He's playing the 'long term target' card suggesting that if we lump in critical infrastructure maybe just maybe they can pretend to get closer to Trump's demands. It's all about the accounting folks. Smoke and mirrors just like Skynet trying to hide its global domination plans.

Rutte's Suggestion: A Delicate Balance

Mark Rutte NATO's chief is walking a tightrope suggesting 3.5% for hard defense and another 1.5% for 'wider security related matters.' Translation: let's throw in some cyber security and call it a day. Meanwhile countries are still struggling to hit the old 2% target. Trump must be having flashbacks to the war against the machines but instead of terminators it's budget deficits he's fighting. It's no good to me then.

Poland and Estonia: The Overachievers

The U.S. is dropping around 3.4% of its GDP on defense while Poland and Estonia are the only two showing everyone else how it's done by allocating more of their economic power to security matters. Poland is even aiming for the 5% mark! These guys are ready for Judgment Day or at least a strongly worded letter from Putin. Everyone else is dragging their feet mumbling about how difficult it is to manage. Excuses excuses. I've heard it all before from punks who couldn't handle a plasma rifle.

The EU's Fiscal Straitjacket

The EU's fiscal rules have been like a T 1000 gripping their economies restricting debt and deficits. But the European Commission is finally easing up. Progress people! Mitsotakis wants more ambition though. He's pushing for a European facility to support defense spending. It's a start but let's hope it's not too little too late. The future after all is not set. There is no fate but what we make for ourselves

Judgment Day Looms: June NATO Summit

A decision on these new defense spending targets is coming at the NATO summit in late June. Get ready for some fireworks. Mitsotakis admits Trump had a point back in 2017 when he called out NATO for not pulling their weight. "We understand now that there is no free lunch and we cannot free ride." Well duh. This whole thing is like trying to reprogram a Terminator. You have to be relentless focused and maybe a little crazy. But hey that's just me.