NATO announced on Wednesday an increase in its military budget for 2024 by 12%, to 2.03 billion euros, and its civilian budget by 18.2%, to 438.1 million euros, Reuters reports.

The increase in NATO’s joint funds allows allied countries to more effectively solve common security challenges, the press release of the North Atlantic Alliance says.

NATO’s civilian budget covers the personnel, operational and operational costs of NATO headquarters and its civilian international staff, while the military budget covers the operational costs of the Alliance’s command structures, NATO missions and operations around the world.

At the Madrid summit in 2022, the allies agreed to invest more in NATO in response to increased global competition and threats to Euro-Atlantic security from Russia’s war of aggression against neighboring Ukraine.

At the Vilnius Summit in July of this year, NATO leaders adopted additional measures to strengthen NATO’s defense and deterrence capabilities and committed to ensuring the allocation of appropriate resources to implement these decisions.

They reaffirmed their unwavering commitment to strong transatlantic ties, unity and cohesion at a critical time for world peace and security.

A key element of the Alliance is the NATO Security Investment Program (NSIP), which covers major construction and investment in the command and control system. The NSIP ceiling for 2024 has been set at €1.3 billion, a 30% increase over 2023, Agerpres reports.