Spain Says No to NATO’s Big Defense Spending Hike

Spain has told NATO it will not agree to spend 5% of its economy on defense, even though its economy is one of the strongest in Europe right now.

Prime Minister Pedro Sánchez made this clear in a letter to NATO’s leader, saying the new target is too high and would hurt Spain’s finances. Right now, Spain spends about 1.3% of its GDP on defense, which is the lowest in NATO.

Next year, Spain will increase this to 2% of GDP, meeting NATO’s old goal. This means Spain’s defense budget will grow to €33.1 billion in 2025.

The government says it can do this without raising taxes or cutting social programs because it will use savings and leftover funds from the European Union.

Sánchez argues that spending 5% of GDP on defense would force Spain to make cuts in important areas like healthcare and education. He says this does not fit with Spain’s priorities or its welfare system.

Balancing NATO Commitments and Economic Stability

Instead, most of the new defense money will go to Spanish companies, creating jobs and supporting local industry. Less than 5% will go to foreign suppliers. Spain’s decision comes as some NATO countries push for higher military spending because of security concerns in Europe.

However, Spain believes its current plan already balances its defense commitments with the need to keep its economy stable and protect public services. This move highlights a bigger debate in NATO about how much each country should spend on defense.

Spain’s government wants to keep control over its budget and avoid making promises it cannot afford. By sticking to the 2% target, Spain hopes to support its allies while staying true to its own economic goals.

All details in this story come from official Spanish government statements and budget figures. No information has been made up or exaggerated.