Spain is planning to invest an additional 10.4 billion euros of defense to meet NATO’s 2% target by 2025, Prime Minister Pedro Sanchez officially announced after a ministerial meeting in Madrid on Tuesday.
The centre-left leader emphasized that Spain remains a “pacifist” country, saying the new investment is intended as a deterrent for “people who might consider attacking Europe.”
Less than a fifth of the plan will be allocated to “purchasing weapons in the traditional sense of words,” the socialist leader added.
Under the proposed defense and security plan, 35% of new investments will be towards improving military working conditions, with over 31% new communications technology and cybersecurity, nearly 19% defense and deterrence tools, and nearly 17% support for emergency and natural disaster management.
Sanchez told reporters that the new investment would not affect citizens’ pockets as the Spanish government does not anticipate tax increases, increased public debt or cuts to the welfare state in 2025 to raise the country’s defense and security spending to around 34 billion euros.
“Funds come from government savings thanks to economic growth, from margins given by items included in the 2023 budget and no longer needed,” Sanchez said.
Additionally, Sánchez promised that most investments (about 87%) would go to Spanish companies, with less than 5% going outside the EU. “The purpose of this project is to make new technology and industry leap,” he argued.
Spain’s security and defense plan will be submitted to the European Commission and NATO for analysis on Wednesday.
So far, Spain has been the laggest NATO country in terms of achieving the 2% defensive spending target agreed by the Transatlantic Army Alliance in 2014. The benchmark is expected to be raised to at least 3% at the NATO Annual Summit held in The Hague in June.
NATO Director General Mark Latte has repeatedly called on all 32 allies to increase military spending to close key capabilities gaps and ensure the continent’s security in the face of potential attacks. And former US President Donald Trump has even asked his counterparts to raise spending to 5% of GDP.
NATO members in Europe have already told US diplomats that reaching those numbers is currently unrealistic, but they are working to increase the share of burden within the alliance.
Italy – One of eight allies that have yet to meet their targets announced last week they will do so later this year.
“We are fully aware of the need to increase such spending over the next few years, especially in light of current tensions,” Economy Minister Giancarlo Giorgeti said last Thursday.
