Spanish Prime Minister Pedro Sánchez announced on Tuesday that his country will significantly increase its military budget this year in order to meet the 2% of gross domestic product (GDP) defense spending target set for NATO members. The move represents a significant rise in Spain’s ranking in defense spending within the alliance.
Spain's Current Defense Spending and New Target
Spain currently spends the least on defense among NATO members, with only 1,3% of its total economic power being spent on its military. But with the announced massive €10,5 billion ($12 billion) increase, Spain’s total defense spending this year will reach €34 billion ($39 billion). The Madrid government had originally planned to gradually increase defense spending to 2% of GDP by 2029. But thanks to this massive cash injection, Spain will reach that critical goal in 2025, four years ahead of schedule.
Statements and Economic Emphasis by Prime Minister Sánchez
The leader of the centre-left, Prime Minister Pedro Sánchez, announced the increased military budget, stressing that a large part of this funding (almost 90%) is expected to stimulate Spain’s domestic economy. Noting that his country remains “pacifist”, Sánchez expressed the hope that the increased military readiness will act as a deterrent to “those who think of attacking Europe”.
Sánchez explained that this additional budget will come from post-pandemic recovery funds, government savings thanks to Spain’s strong economic growth, and some items in the government budget that are “no longer needed.” The prime minister also added that less than a fifth of this extra money will be used “for traditional arms purchases.”
Budget Distribution and Priorities
The distribution of the announced €10,5 billion ($12 billion) additional budget has also been clarified. More than 35% of this support will be spent on improving the working conditions of soldiers. More than 31% will be invested in new telecommunications technologies and cybersecurity. Around 19% will be allocated to the modernization of defense and deterrence tools, while around 17% will be used to support emergency and natural disaster management. This distribution shows that the increase in Spain's defense spending is not only focused on armaments, but also has a broad perspective on the well-being of personnel and the country's overall security.
Spanish Economy and Trend in Europe
Spain’s economy has performed well in recent years compared to many Western countries, with GDP set to grow by 2024% in 3,2, making it the fastest-growing country in the Eurozone. The country has been under a center-left government since 2020, whose priorities have generally focused on social issues and a fairer redistribution of wealth rather than military spending.
Spain’s significant military spending increase is part of a historic transformation across Europe following Russia’s full-scale invasion of Ukraine. Defense budgets across the continent have risen significantly since then, with military spending across the European Union (EU) totaling €326 billion ($374 billion) last year, just under 2% of total GDP.
NATO Pressure and Future Prospects
Former US President Donald Trump’s repeated questioning of the collective security of member states that do not spend enough under NATO’s treaty has increased pressure on the alliance to increase defense spending. The 2% target was officially accepted by the alliance’s heads of state in 2014 after Russia annexed Ukraine’s Crimean Peninsula. However, this figure was first committed to in 2006. There is talk of raising the defense spending target to 3% at the NATO summit in The Hague in June. Spain’s swift and decisive move looks set to both strengthen its position within NATO and make a significant contribution to Europe’s overall security architecture.
