Tech billionaire Elon Musk on Wednesday questioned why the American taxpayers are funding a massive chunk of Europe's defence costs. He also said that this defied all logic according to him.
Musk's comment comes after US Defense Secretary Pete Hegseth said in Brussels this week that NATO countries need to increase their defense spending.
"Wait, why are American taxpayers covering 2/3 of the defense costs of Europe? That doesn't make sense. Defense from who?" Musk wrote on X (formerly Twitter).
Pete Hegseth said that NATO countries need to increase their defense spend to ~5 per cent of GDP, higher than the current 2 per cent target. "President Trump will not allow anyone to turn Uncle Sam into Uncle Sucker," Hegseth said.
He emphasised that Europe must take primary responsibility for its own security. The US Defense Secretary highlighted that the US funds around 67 per cent of the alliance's military costs despite spending only 3.5 per cent of its GDP.
He, however, maintained that the US "remains committed" to NATO and to defense partnership with Europe. "But the United States will no longer tolerate an imbalanced relationship which encourages dependency.
Hegseth also stated that the US itself is faced with "consequential threats" and is focusing on the security of its borders.
In 2024, the US was expected to spend approximately $967 billion on defense or around 3.4 per cent of its GDP, representing ~67 per cent of NATO's total military spending, even though Europe and Canada make up nearly half the alliance's GDP.
Musk's question on the US funding NATO's expenses is germane as the States cannot afford to continue being Europe's protector anymore.
As per the Congressional Budget Office, the federal budget deficit in fiscal year 2025 stands at $1.9 trillion.
Top sources of federal budget spending include Medicare, Medicaid, and other health entitlements (28 per cent); social security (22 per cent); defense and income security (13 per cent each); net interest on debt (11 per cent); and miscellaneous spends (13 per cent), as per the Cato Institute.
NATO's funding comes from direct and indirect contributions by member nations. Common funds, which are around €4.6 billion for 2025, are used for delivering capabilties and running the organisation's operations.
Meanwhile, French President Emmanuel Macron has called an emergency security meeting and Ukraine's Volodymyr Zelenskyy is continuing to push for a European military force.