The Dutch government has given the go-ahead for a significant increase in defence spending, just as NATO is pushing its members to raise the figure to 5%.

The caretaker coalition has agreed to increase defense spending to 3.5% of GDP, with an additional 1.5% allocated to infrastructure that supports military readiness, public broadcaster NOS reported Friday.

Defense Minister Ruben Brekelmans called it a “historic decision” amid rising tensions with Russia and calls for European defense autonomy.

It will be recalled that last week the ruling coalition had collapsed, leaving a caretaker government in place until autumn elections.

Although the Netherlands did not give a timetable for meeting the target, the plan brings the Netherlands in line with the new NATO spending framework proposed by Secretary General Mark Rutte, with a target of 5% of GDP. According to NOS, the estimated annual cost of €16 to €19 billion has not yet been budgeted and will be left to a future coalition to resolve.

The proposed increase in the Netherlands comes on the heels of pressure from Trump, who has urged NATO allies to increase their defense contributions or accept a reduced U.S. role in the military alliance.

The plan is expected to be discussed – and possibly approved, as Politico notes – at the NATO summit in The Hague on June 24 and 25.