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Spain rejects NATO’s 5% defence target, cites economic strain

Spain has declined NATO’s proposal to raise defence spending to 5 per cent of GDP, warning it would undermine European sovereignty and harm domestic economic priorities. Prime Minister Pedro Sánchez called the target “unreasonable” and asked for an exemption ahead of next week’s summit.

News Arena Network - Madrid - UPDATED: June 20, 2025, 01:29 PM - 2 min read

Representative image.


Spain has formally declined to commit to NATO’s proposed increase in defence expenditure to 5 per cent of GDP, branding the move “counterproductive” and potentially damaging to European strategic autonomy.

 

In a letter sent to NATO Secretary-General Mark Rutte on Thursday, Prime Minister Pedro Sánchez urged the alliance to pursue a more flexible and sovereign-respecting policy framework. The correspondence, accessed by multiple international news outlets, warned that Spain would not adhere to the proposed target.

 

“Committing to a 5 per cent target would not only be unreasonable but also counterproductive,” Sánchez wrote, adding: “As a sovereign Ally, we choose not to.”

 

The Spanish leader further argued that such commitments would hinder the European Union’s independent efforts to develop its own security and defence mechanisms.


Also read: NATO’s rearmament no threat to Russia, says Putin

 

Spain’s refusal, just days ahead of a crucial NATO summit, could potentially stall or dilute a collective agreement among the bloc’s 32 member states, all of whom have come under renewed pressure to boost military expenditure, particularly from US President Donald Trump.

 

As of June 2025, Spain spends approximately 1.28 per cent of its GDP on defence, the lowest among NATO members. Sánchez has long voiced reservations over exceeding the 2 per cent threshold, stating that heightened military expenditure could damage Madrid’s economic trajectory.

 

NATO’s proposal for heightened spending includes a new formula advanced by Secretary-General Rutte, which divides the 5 per cent target into 3.5 per cent for core military spending and 1.5 per cent for wider security investments.

 

While some member states have quietly agreed to the new framework, Italy has also expressed concern, reportedly requesting that the deadline for meeting the target be extended from 2032 to 2035, and opposing the mandatory 0.2 per cent annual increment.

 

With internal divisions now surfacing, the upcoming summit may witness prolonged negotiations, particularly over enforcement mechanisms, exemptions, and fiscal safeguards for economically pressured member states.

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