Military Expenditure in Netherlands, 1960-2022

The Netherlands' military expenditure reflected its NATO commitments during the Cold War and subsequent shifts in global security dynamics. Spending peaked at 4.1% of GDP in the early 1960s, as part of NATO's collective defense strategy. By the 1970s, spending gradually declined, averaging around 2.8% as détente reduced immediate security concerns in Western Europe.

Post-Cold War, defense budgets decreased significantly, falling to 1.4% by 2000. This reduction aligned with Europe’s broader peace dividend and the prioritization of non-military sectors. A slight resurgence in the 2020s, reaching 1.6% in 2022, reflects the Netherlands’ response to renewed geopolitical tensions, including NATO's increased focus on collective security in light of conflicts like Russia's actions in Ukraine.