Spain has reportedly secured a significant exemption from a potential new NATO defense spending target, allowing the country to avoid a proposed goal of allocating 5% of its GDP to defense. Prime Minister Pedro Sánchez announced the agreement on Sunday, just days before a crucial NATO summit where alliance finances are expected to be a key topic.
Under the terms of the deal, Spain will not be required to meet the 5% threshold. Instead, Sánchez stated that Spain intends to uphold its commitments to the 32-member military alliance by dedicating 2.1% of its GDP to defense needs. He emphasized that this level of spending ensures Spain’s “participation, weight, and legitimacy in NATO remain intact,” despite not reaching the higher figure.
The exemption was formalized through an exchange of letters on Sunday between Sánchez and NATO Secretary-General Mark Rutte. Sánchez confirmed that the agreement involved modifying the language surrounding the potential 5% target, removing the phrase “all allies” to reflect Spain’s specific situation.
Background and Pressure on Defense Spending
This development follows Sánchez’s communication to Secretary-General Rutte on Thursday, where he indicated Spain’s inability to commit to the higher 5% target. Spain has historically been one of NATO’s lower defense spenders, with NATO estimates placing its military expenditure at 1.28% of GDP last year. While Sánchez’s government had announced plans in April to increase defense spending to 2% of GDP this year, the prospect of a 5% target presented a significant challenge.
The push for potentially higher spending targets, especially a jump to 5%, had created tension ahead of the upcoming NATO summit in The Hague. New spending guidelines require unanimous consensus from all 32 member states, and Spain’s potential disagreement could have complicated summit outcomes. The summit is also notable for the expected attendance of U.S. President Donald Trump.
International Reactions and Spain’s Stance
The debate over defense spending intensified following comments from U.S. President Donald Trump on Friday. Trump criticized Spain, labeling it “a very low payer” and asserting that the country, the eurozone’s fourth-largest economy, “has to pay what everybody else has to pay.”
Sánchez addressed this pressure, stating on Sunday that Spain advocates for Europe to take greater responsibility for its own defense – a sentiment he noted aligns with some of President Trump’s views. However, Sánchez firmly stated that achieving a 5% defense spending target is “incompatible with our worldview,” underscoring Spain’s distinct approach to military expenditure within the alliance framework.
The deal ensures Spain can continue its participation in NATO without being bound by the higher potential 5% target, focusing instead on meeting its 2.1% commitment as the alliance prepares for key discussions at the upcoming summit.
