DONALD Trump has today declared victory in his row with Nato allies and claims they have agreed to spend an additional £25 billion on defence.

His declaration came moments after members held an emergency meeting to address the US President's increasingly furious accusations they are not contributing enough financially.

20 Donald Trump declares victory at the Nato summit in an unplanned press conference Credit: Reuters

The US President, who arrived half an hour late to this morning's gathering, then held an unscheduled press conference to declare members would be increasing payments.

He said: "Progress has been made, everyone has agreed to substantially to up it, up to levels never seen before. The commitment was at two percent. Ultimately, it will be going up quite a bit higher than that."

There were conflicting reports that Trump had threatened to quit the alliance if members did not agree to his demands.

The Times' defence editor Deborah Haynes today tweeted quotes from a source who said: "The US President continued that if the wealthiest economies are not paying 2 percent by January 'we are going to do our own thing'."

What we know so far:

Donald Trump is demanding "free-riding" Nato members increase their payments towards the defence alliance

He has had a spectacular fall-out with German Chancellor Angela Merkel and reignited his fury in a scathing Twitter tirade on Wednesday

The US President arrived in Brussels for the two-day Nato summit on Monday before he jets to Britain for his first state visit today

Following his trip to the UK he will travel to Helsinki, Finland, for his first "one-on-one" with Russia's Vladimir Putin

Allies fear he may offer concessions to Putin - such as Crimea or the loosening of sanctions - if his Nato demands are not met

He launched a blistering attack on Germany for spending millions on Russian oil and gas and very little on defence

Angela Merkel responded by referencing her youth in Soviet-controlled East Germany and denied Russia could control Berlin

Trump tweeted about his determination to get trade tariffs slashed for US farmers' produce, in particular, soy beans

Yesterday he demanded all countries should start paying 4 percent of their GDP on defence, an increase on the current 2 percent obligation

This morning Nato members entered into an emergency meeting after Trump began demanding immediate increases in nations' defence spending

Trump then held an unscheduled press conference in which he declared members agreed to spend an additional £25billion

20 Trump made the announcement following an emergency meeting at the Nato summit Credit: Reuters

However, two Nato sources who spoke to Reuters said he did NOT threaten to quit, while the President himself would only tell press he let leaders know he "was unhappy".

He added: "They raised an additional $33billion (£25bn), possibly going up to $40bn (£30bn). I told people I'd be very unhappy if they didn't up their commitments substantially.

"I let them know yesterday... I let them know that I was extremely unhappy with what was happening.

"Now Nato is a very strong ally, much stronger than individual countries. Numbers have gone up like a rocket ship. I think Nato is going to be very effective."

Would US President Donald Trump still consider pulling America out of Nato?

Trump had yesterday turned on Germany, labelling it a "captive of Russia" due to a huge natural gas import deal with Russia.

He also labelled members of the alliance "delinquent" for failing to spend 2 percent of their GDPs on defence.

Merkel today told reporters that "there was a clear commitment to NATO by all" at an emergency session of the military alliance.

She said Trump raised the topic of better burden-sharing and more spending by Germany, "as has been discussed for months," and that, "we made clear that we're on the way".

A source claimed that at one point, in a break with diplomatic protocol, Trump addressed Merkel by her first name and told her: "Angela, you need to do something about this."

20 Trump walks with Melania to meet world leaders at the Nato summit yesterday Credit: EPA

20 Melania met with fellow wives and partners of leaders during the Nato crunch talks Credit: AFP or licensors

Trump brushes off UK protests saying 'I think they like me a lot in the UK'

Invited leaders from non-NATO countries Afghanistan and Georgia were asked to leave along with most NATO leaders' retinues of officials, as the heads of state and government of the Western alliance sought to deal with the man whose nation commands much of the budget and forces for Europe's defence.

One source said: "The language was much tougher today. His harshest words were directed at Germany, including by calling her Angela - 'You, Angela.'"

Meanwhile, diplomats have also reflected on yesterday's testy confrontations.

One told CNN: "It's like the world has gone crazy this morning. Trump's performance was beyond belief."

Another yesterday said Trump's sudden and targeted attack on Germany and Angela Merkel was "very confusing".

20 Melania speaks at length with Angela Merkel during a Nato cocktail party on Wednesday evening Credit: Reuters

20 The First Lady was seen giving Mrs Merkel a kiss on the cheek during the party Credit: Reuters

They added: "The attacks before, and now this tremendous stuff today. It doesn't make any sense. We're still in the process of analysing it."

Trump had tweeted earlier today: "Presidents have been trying unsuccessfully for years to get Germany and other rich NATO Nations to pay more toward their protection from Russia.

"They pay only a fraction of their cost.

"The U.S. pays tens of Billions of Dollars too much to subsidize Europe, and loses Big on Trade!

20 Donald Trump had launched a blistering attack on Germany for its ties to Russia Credit: Reuters

"On top of it all, Germany just started paying Russia, the country they want protection from, Billions of Dollars for their Energy needs coming out of a new pipeline from Russia.

"Not acceptable! All NATO Nations must meet their 2% commitment, and that must ultimately go to 4%!"

A third European diplomat told CNN that Trump's attacks on Merkel in the past have resonated with his US voter base.

"Targeting Merkel, especially her immigration strategy in the past, is exactly what he wants to attack.

"She has allowed in a lot of immigrants. He's found that these attacks work, and can produce a great deal of damage.

20 Melania, pictured at the cocktail party last night Credit: AFP

20 From left: Melania Trump; Turkey's first lady Emine Erdogan; Estonian Prime Minister's spouse Karin Ratas; Bulgarian President Rumen Radev's partner Desislava Radeva; and Jens Stoltenberg's spouse Ingrid Schulerud Credit: Reuters

"Second, the President is under attack himself for the way he treats Putin and the way he may treat Putin in Helsinki."

His attacks continued this morning after First Lady Melania attempted to smooth over tensions at a NATO summit party last night.

The pair attended a glitzy cocktail party with his wife, who was seen kissing Merkel on the cheek.

Trump and Merkel's pair's spectacular falling out yesterday occurred when he accused Germany of being “totally controlled by Russia” over a natural gas pipeline venture with Moscow.

20 The spouses of the Nato leaders gathered for a picture ahead of a dinner together on Wednesday night Credit: AP:Associated Press

During his rant, aide John Kelly could be seen squirming in his chair - a reaction the White House later bizarrely blamed on his displeasure with the food options.

And in a scathing Twitter tirade last night, he continued his attack saying: "What good is NATO if Germany is paying Russia billions of dollars for gas and energy?

"Why are there only 5 out of 29 countries that have met their commitment?

"The U.S. is paying for Europe’s protection, then loses billions on Trade. Must pay 2% of GDP IMMEDIATELY, not by 2025."

20 The couple pictured stepping off Air Force One in Brussels earlier this week Credit: AP:Associated Press

20 Trump arrived at the summit yesterday and wasted no time launching a blistering attack on fellow allies Credit: AP:Associated Press

20 He now claims to have forced them to spend an additional £25billion on defence Credit: Reuters

And as yesterday's stormy meetings descended into farce, Merkel hit back to suggest Trump didn’t know what he was talking about.

The Chancellor, who grew up behind the Iron Curtain, said: “I've experienced myself a part of Germany controlled by the Soviet Union and I'm very happy today that we are united in freedom as the Federal Republic of Germany and can thus say that we can make our own decisions".

French President Emmanuel Macron - who is considered to be the one European leader Trump personally likes - backed Merkel by also denouncing Trump’s claim.

20 Trump has been seated next to May for the summit's afternoon session Credit: EPA

20 Despite this he appeared cheery as he posed for pictures Credit: AFP or licensors

20 Trump and May speak during the Nato summit which is fraught with tension Credit: Reuters

WHAT IS NATO?

NATO, or the North Atlantic Treaty Organisation, was formed after the end of the Second World War when a group of nations joined forces against the growing threat of the Soviet Union.

Established in 1949, it originally comprised 12 members but this has now expanded to 28 different states, including several bordering Russia.

Considered to be the largest and most powerful military alliance in history, it is known for the so-called Article 5 - in which members pledge to come to the aid of any member state under attack.

So it stands that if a member state is attacked the attacker must go to war with all members, including the US.

The organisation, which is credited with the escalation of the Cold War, carries out its own military missions using the troops of member states.

20 This image shows Nato members alongside traditional foe Russia and its allies

20 NATO Secretary-General Jens Stoltenberg chairs a NATO defence ministers' meeting Credit: Getty Images

WHAT IS BEING DISCUSSED?

Few Nato summits have captured the attention quite like this week's due to US President Donald Trump's posturing over defence spending.

Alliance leaders are discussing the growing threat of Russia after Putin annexed the Crimea and backed a separatist war in eastern Ukraine in 2014.

In recent years Putin has also stepped up his war of disinformation against the West, while his Novichok poisonings in Britain also plunged diplomatic relations to a new low.

However, the headlines are being dominated by Trump's interactions - and clashes - with fellow world leaders and in particular Angela Merkel.

Disagreement centres around members' defence spending, with the Nato guidelines stipulating members must pay 2 percent of their GDP towards defence.

20 This photo, taken at the G7 summit, shows Trump appearing defensive as his allies gang up on him Credit: EPA

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WHAT DOES TRUMP WANT?

Trump claims the US is paying far more than its Western allies towards the defence pact and wants members to increase their own defence spending.

According to figures from 2010 - 2017, the US spent 3.6 percent of its GDP towards the alliance across the 10 years. In fact, data shows only Britain, Greece and the US met their spending obligations.

Trump has already demanded all Nato members immediately increase their defence spending to 2 percent, and says he wants this raised to 4 percent.

20 This chart provides a breakdown of Nato members' defence spending

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