Spain rejects NATO’s 5% defence spending hike as ‘counterproductive’

Spanish PM Pedro Sanchez warns the spending hike would undermine EU efforts to build its own security and defence base.

Spain has reportedly asked to opt out of NATO’s proposed defence spending target of 5 percent of GDP, risking disruption to a key agreement expected at next week’s alliance summit.

In a letter addressed to NATO Secretary-General Mark Rutte on Thursday, Prime Minister Pedro Sanchez urged the alliance to adopt a more flexible framework, according to media reports.

The letter, seen by the Reuters and Associated Press news agencies, called for either the target to remain optional or for Spain to be exempt entirely.

“Committing to a 5% target would not only be unreasonable, but also counterproductive,” Sanchez wrote, warning that it would undermine efforts by the European Union to build its own security and defence base. “As a sovereign Ally, we choose not to.”

Sanchez insisted Madrid does not intend to block the outcome of the upcoming summit. But any agreement on increased defence spending must be approved unanimously by all 32 NATO members, giving Spain leverage to delay or water down the deal.

Spain currently spends approximately 1.28 percent of its GDP on defence, the lowest among NATO members, according to alliance estimates. While Sanchez has pledged to accelerate the country’s path to NATO’s current 2 percent goal, he argues that going beyond that risks harming the welfare state and compromising Spain’s broader policy vision.

NATO’s push for higher spending follows calls by US President Donald Trump and others to share the burden more fairly across the alliance. Rutte has suggested a new formula that allocates 3.5 percent of GDP to core military spending and an additional 1.5 percent to broader security needs.

Pressure to increase defence spending

The United States, NATO’s largest military contributor and Ukraine’s main backer since Russia’s 2022 invasion, is estimated to have spent 3.38 percent of its GDP on defence in 2024. Trump has repeatedly claimed European allies are not pulling their weight, and has threatened to withhold support for those who fall short.

Sanchez, however, said rushing to meet a 5 percent target would force EU states to buy military equipment from outside the bloc, damaging the continent’s attempts to bolster self-sufficiency in defence.

The proposal also faces resistance from Spain’s political left. The left-leaning Sumar party, part of Sanchez’s coalition, opposes the move, while Podemos, not in government but often a key parliamentary ally, has also rejected it.

“If the government needs parliamentary support to approve spending, it will have a very difficult time in the current situation,” said Josa Miguel Calvillo, a professor of international relations at the Complutense University of Madrid, speaking to Reuters.

Italy has also raised concerns, reportedly seeking to shift the proposed deadline for the new target from 2032 to 2035 and drop the requirement to increase spending by 0.2 percent annually.

One senior European official told Reuters that Spain’s rejection complicates talks but said discussions are ongoing. “It doesn’t look good, indeed, but we are not over yet. Spain has demonstrated to be a steadfast ally so far.”