Politics Now PM stares down US defence spending demand
Jun 2, 2025
Australia's Prime Minister firmly resists U.S. demands to increase defense spending, citing a need for autonomy amid rising Indo-Pacific tensions. He also addresses the struggles of farmers facing climate change impacts, despite disappointing greenhouse gas reduction figures. Discussions highlight the complexities of the AUKUS agreement and the challenges of balancing domestic needs with international pressures. The podcast dives into shifting political perspectives on climate policy, revealing a fatigue among the public over ongoing debates.
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US Defence Spending Demand
- The US demands Australia raise defence spending to 3.5% of GDP, around $100 billion annually, to support Indo-Pacific security.
- Australia resists being dictated to, emphasizing national interest and careful budget management amid AUKUS costs.
US Pressure on Allies Increases
- The US puts strong pressure on allies to increase defence spending given the geopolitical shift.
- The Trump administration particularly vocal about allies 'not lifting their weight', reflecting bipartisan concern.
Defense Budget Reallocation Insight
- Australian defence spending criticisms come from opposing views: those against and those supporting big projects like AUKUS.
- Significant defence projects are currently funded by reallocating existing budgets, highlighting fiscally stretched priorities.