U.S. Defense Secretary Pete Hegseth on Thursday called for a reboot of NATO into a "NATO 3.0" capable of deterring any threat, while alliance chief Mark Rutte said the transformation was already underway as allies ramp up defense spending and military production.
"NATO 3.0 is post-Cold War recognition that (NATO) needs to go back to a real hard-line military alliance that has real military capabilities capable of deterring right here on the continent and taking the lead for the conventional defense of Europe," Hegseth said ahead of talks with NATO defense ministers in Brussels.
Hegseth said the United States would invest $1.5 trillion in defense in 2027, sending "a message to the world" that America is building an "arsenal of freedom."
He said the arsenal "first and foremost protects America and American interests, but also backstops the strength of NATO and our allies."
The Pentagon chief reiterated Washington's position that European allies must take greater responsibility for the defense of their own continent and help transform NATO into what he described as a "real hard-line military alliance."
Hegseth also praised allies for making progress toward meeting defense spending commitments but said some countries still need to do more.
"Many countries are following through, some still need to do more, and we will be candid about that, both in private and in public," he said.
"I think that's important, friends being honest with friends."
His remarks are likely to reassure Washington's allies ahead of a summit with U.S. President Donald Trump next month, after the U.S. leader sharply criticized Europe over its response to the conflict with Iran.
NATO is expected to highlight increased European defense spending as evidence of progress toward a pledge to reach 5% of gross domestic product in defense-related spending.
"When it comes to spending, what we are seeing is staggering amounts of money coming in," NATO Secretary General Mark Rutte said.
"Europe and Canada are spending more than $90 billion extra in 2025 compared with 2024, which is almost a 20% increase in defense spending."
Despite the alliance's positive outlook, a NATO official said three European countries, including Slovenia and the Czech Republic, are currently on track to miss the alliance's key 2% defense spending target this year.
Washington has made clear that it wants European NATO members to assume primary responsibility for conventional defense on the continent as U.S. strategic attention increasingly shifts toward China.
As part of that transition, the Pentagon has informed allies that it is reducing the number of assets it makes available to NATO worldwide.
The move has raised concerns that Europe could be left vulnerable to a more aggressive Russia, as many allies continue to rely on Washington for critical military capabilities.
Rutte said NATO is entering an implementation phase ahead of next month's summit in Ankara, citing higher defense spending, expanded military production and continued support for Ukraine.
"This is the last big meeting that we will have before the Ankara summit, and the Ankara summit will be all about implementation," he said.
Rutte described the gathering in Brussels as the final major ministerial meeting before the summit.
"What we are seeing is that NATO 3.0 is really happening," he said, describing it as "a stronger Europe in a stronger NATO."
Rutte said allies are significantly increasing military spending, noting that Europe and Canada are expected to spend more than $90 billion extra on defense in 2025 compared with last year, representing nearly a 20% increase.
According to Rutte, the increase forms part of efforts to meet NATO capability targets and move toward the alliance's agreed defense spending benchmark.
He also stressed the need to expand defense production on both sides of the Atlantic.
"We need to produce more, both in the U.S. and in Europe, to keep ourselves safe," he said.
Rutte welcomed efforts by the United States and European allies to strengthen their defense industrial bases, arguing that NATO must keep pace with its competitors.
"China, Russia and others are at this moment ramping up their defense industrial output," he said.
Rutte said support for Ukraine would remain a central topic at both the Brussels meeting and the Ankara summit.
"We need to keep Ukraine strong, strong in the fight," he said.
He announced that Ukrainian President Volodymyr Zelenskyy would participate later Thursday in a meeting of the Ukraine Defense Contact Group.
Referring to a meeting with Zelenskyy on Wednesday evening, Rutte said discussions focused on battlefield developments and Ukraine's military requirements, particularly air defense systems and protection for critical infrastructure.
"The president was in a good place," Rutte said, adding that he viewed recent Group of Seven conclusions on Ukraine positively.
He also thanked the United States for continuing military assistance deliveries, including interceptors for Patriot air defense systems.
Addressing questions about Washington's decision to reduce part of its contribution to NATO's force model, Rutte said the move concerned a planning mechanism rather than the alliance's ability to respond during a crisis.
He said European allies are already replacing much of the capability gap created by the adjustment.
"The Europeans are now backfilling it," he said, adding that the alliance is "really in a good place."
Rutte also rejected suggestions that the United States was stepping back from NATO, praising Hegseth's calls for greater burden-sharing within the alliance.
"The U.S. is completely committed to NATO," he said, adding that Washington expects European allies and Canada to increase defense spending and military capabilities.
Rutte also welcomed the recent U.S.-Iran agreement, describing it as an important step toward reducing security risks.
"I think President Trump struck a good deal," he said, arguing that the agreement helped degrade Iran's nuclear and ballistic missile capabilities.
He also highlighted the importance of restoring freedom of navigation through the Strait of Hormuz, saying G7 countries are discussing ways to support maritime security in the area.
While noting that the issue is not directly a NATO mission, Rutte said the alliance would be willing to help if requested.