BRUSSELS—The head of the North Atlantic Treaty Organization said new estimates show military spending from European countries and Canada is set to rise 1.5% this year, an increase of $3 billion, which he praised as a step in the right direction.

“After the end of the Cold War there was a long decline in military spending across European allies and Canada,” Secretary-General Jens Stoltenberg said on Monday. “This is real progress. After many years going in the wrong direction, we are starting to go in the right directions.”

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