The decision by NATO members on Wednesday to spend 5 percent of their GDP on defence could shift budget priorities.

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NATO leaders signed a deal to increase defence spending as the annual alliance summit in The Hague drew to a close after two days of meetings on Tuesday and Wednesday.

At the top of the agenda was a big new defence spending target demanded by US President Donald Trump, which will see NATO members spend 5 percent of their economic output on core defence and security.

The new spending target, which is to be achieved over the next 10 years, is a jump worth hundreds of billions of dollars a year from the current goal of 2 percent of gross domestic product (GDP).