Spain will reach NATO's goal of spending 2% of its GDP on defence this year, well ahead of its previously set deadline of 2029, Prime Minister Pedro Sánchez announced on Tuesday.
In 2024, Spain allocated just 1.3% of its GDP to defence, the lowest among NATO members. Along with other European nations, Spain faces pressure from US President Donald Trump, who is urging NATO allies to increase military spending to as much as 5% and is hesitant to continue funding Ukraine's war effort.
Sánchez stated that the target would be met through an additional €10.47 billion in spending, prioritising the expansion of Spain's military, as well as investments in telecommunications, cybersecurity, and the procurement of military equipment.
“This plan will help us meet (the target) in record time. Spain will contribute to defending Europe,” Sánchez said.
The European Commission has proposed allowing member states to increase defence spending by 1.5% of GDP annually for four years without facing penalties for rising deficits. It also aims to encourage countries to collaborate on joint defence projects and pool resources, Reuters reports.
Italy announced last week that it will also meet NATO’s 2% target this year through a series of accounting adjustments.
Furthermore, Sánchez expressed confidence that most lawmakers would support the plan, noting, however, that it did not require parliamentary approval. This is because the plan mainly involves reallocating existing funds and utilising budgetary savings, without raising taxes or affecting the deficit.
Sánchez added that the boost in defence spending will support the reindustrialisation of the Spanish economy, promote technological innovation, and generate employment.
Roughly one-third of the new investment will be directed toward telecommunications, satellite systems, and AI technologies, aiming to build a “digital shield against the hackers,” he said.
In addition, Sánchez said that southern European nations face different security challenges compared to NATO’s eastern flank allies. He argued that issues such as border control, counterterrorism, and cyberattacks should be recognised as legitimate areas of defence spending.
EU officials have clarified that while general cybersecurity measures may not be counted as defence spending, military-specific investments, such as computers used to defend against cyberattacks, would qualify.
Sánchez added that approximately 19% of Spain’s additional defence spending will be dedicated to modernising the country’s military capabilities through the manufacturing and procurement of equipment.
The PM noted that his government’s actions are in response to rising geopolitical tensions around the world
“If you had asked me years ago about my government's investment priorities for security and defence, my answer would obviously have been different from the one I've just outlined. But that's not because our values and our goals have changed; it's because the world has changed.”