It cited Nato's own estimate that the UK met the 2% target. The alliance says only the UK, US, Poland, Greece and Estonia met the target, which was set in 2006, last year. The UK has called on other countries to increase their spending, and US President Donald Trump has complained of European members failing to pay their fair share for collective defence arrangements. 'Different results' In its report, the IISS said only Greece and Estonia spent 2% or more, with the UK falling short by about 380m. Its researchers said there was "no shared understanding" of what constitutes a nation's defence expenditure, pointing out that Nato's definition includes not only defence ministry budgets but also pensions, expenditure for peacekeeping and humanitarian operations, and research and development costs. They added that "very different results" could be reached depending on how expenditure is converted into US dollars and that different GDP figures could also distort the figures. They also questioned the "increasingly prominent" role of the 2% figure, saying it "only provides a limited representation of countries' defence capabilities and commitments". "Ultimately, it is the output that matters," they added. 'Biggest in Europe' The Ministry of Defence dismissed the think tank's assessment of the UK's spending. "These figures are wrong," it said. "Nato's own figures clearly show that the UK spends over 2% of its GDP on defence.
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