Spain Caps Defense Budget at 2.1 Percent of GDP

2025-06-23 04:19:12

(MENAFN) Spain and NATO Reach Deal to Cap Defense Budget at 2.1% of GDP, PM Sanchez Confirms
In a significant move ahead of the upcoming NATO summit on Tuesday, Spanish Prime Minister Pedro Sanchez revealed on Sunday that Spain has agreed with NATO to restrict its military expenditure to 2.1 percent of its gross domestic product (GDP).

Sanchez disclosed that this understanding was reached after intense weekend negotiations and a series of communications between himself and NATO Secretary General Mark Rutte.

At a press briefing held at La Moncloa Palace, Sanchez declared, "Spain will need to allocate 2.1 percent of its GDP to acquire and maintain all the personnel, equipment, and infrastructure requested by the Alliance to address the threats and challenges. " "No more, no less."

This decision directly counters the push from U.S. President Donald Trump, who has aggressively urged NATO member states to boost their defense budgets to five percent of GDP. Sanchez had already rejected this proposal publicly last Thursday, making clear Spain’s unwillingness to commit to such a steep increase.

In his Sunday remarks, Sanchez cautioned against hastily pursuing the 5 percent benchmark, arguing it would drive up prices, inflate public spending, and curtail vital investments in sectors like education and digital innovation.

Describing the 5 percent target as "disproportionate and unnecessary" for Spain, Sanchez highlighted that the country is "one of the five NATO countries with the most troops deployed worldwide." He further pointed out that "asymmetry within NATO is normal and inevitable," referencing the economic differences among member states.

The Prime Minister emphasized that Spain’s Armed Forces have determined a 2 percent GDP allocation suffices to fulfill all national defense obligations.

In a letter addressed to Secretary General Rutte last Thursday, Sanchez plainly stated: "Each NATO member, as a sovereign country, decides whether or not to make those sacrifices. And we choose not to."

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