In a remarkably clear letter to NATO Secretary General Mark Rutte, Spanish Prime Minister Pedro Sánchez has decisively rejected the NATO-sought increase in military spending to 5% of Gross Domestic Product (GDP) for all member states. This positioning comes shortly before the crucial NATO summit and underscores the priorities of the Spanish government.
Spain’s Defense Spending: A Balancing Act Between Security and Welfare
Sánchez’s letter, which for the first time specifies the figures Spain deems necessary – namely 2.1% of GDP for military spending – shows a clear distinction from the Alliance’s maximum demands. The President argues that an increase to 5% of GDP would not only be “unreasonable” for Spain but could even be “counterproductive.” He emphasizes that this could only be achieved at the cost of massive cuts in essential areas such as tax increases for the middle class, cuts in public services and social benefits, and a reduction in commitment to the green transition and international development cooperation.
In an unusually energetic tone, Sánchez insists on the “legitimate right of all governments to decide whether they are willing to make these sacrifices or not,” and clarifies that Spain, “as a sovereign ally, chooses not to do so.” He reaffirms the need for a balance between increased defense spending and addressing pressing social, economic, and environmental challenges. At the same time, he assures that Spain has no intention of limiting the spending ambitions of other allies or obstructing the upcoming NATO Summit.
NATO Goals and EU Synergies: Spain’s Perspective
A central point in Sánchez’s argument is the potential impairment of the European Union’s efforts to strengthen its own security and defense ecosystem. A drastic increase in national defense spending to 5% would, according to Sánchez, undermine this process. He stresses the need for the EU to help its allies improve interoperability, procurement processes, and industrial base to deter Russia more effectively and restore the balance of transatlantic defense burden. Threats from the southern flank, which are of particular relevance for news from Spain, must not be overlooked.
Sánchez cites two main reasons for the negative impacts of such a spending increase: First, Spain would be forced to procure armaments from outside its borders, which could exacerbate interoperability issues and divert resources to non-European suppliers. Second, allocating so many resources to defense would reduce Spain’s “economic growth” due to increased debt, inflationary pressure, and the redirection of investments from important areas with higher multiplier effects, such as education, health, and digital technology, into the defense industry.
Sánchez concludes his letter with a precise jab at Rutte: “In short, it is worth remembering that capabilities are paid for with euros and not with percentages of GDP.” He emphasizes that a sustainable increase in real spending primarily depends on economic growth. “To achieve this, we must find the right balance between strengthening our defense capabilities and strengthening our overall economic competitiveness,” the Prime Minister concludes.
