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American Focus > Blog > Politics > Spain and NATO Agree: Madrid Will NOT Spend 5% of GDP in Defense – Deal Comes as Dispute Threatened To Derail Alliance’s Next Week Summit |
Politics

Spain and NATO Agree: Madrid Will NOT Spend 5% of GDP in Defense – Deal Comes as Dispute Threatened To Derail Alliance’s Next Week Summit |

Last updated: June 23, 2025 2:38 am
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Spain and NATO Agree: Madrid Will NOT Spend 5% of GDP in Defense – Deal Comes as Dispute Threatened To Derail Alliance’s Next Week Summit |
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Sánchez maneuvering through a political storm.

Amidst a backdrop of domestic turmoil fueled by a slew of corruption scandals, Spanish Prime Minister Pedro Sánchez has managed to secure a diplomatic win concerning defense policy just days ahead of the upcoming NATO summit. However, this victory comes as his government grapples with the fallout from allegations involving family and party officials linked to various unsavory activities.

Sánchez finds himself in a precarious position, with investigations scrutinizing his wife, brother, and several party members for their alleged entanglements with prostitutes, adult film stars, and bribery. The situation has even led police to search the Socialist Party’s headquarters in pursuit of incriminating emails from the disgraced Santos Cerdán.

In this context of chaos, Sánchez announced that Spain would not be increasing its defense budget to the NATO-recommended 5% of GDP—a move that could have jeopardized the summit slated to take place in The Hague.

But as the political winds shifted, the Associated Press reported:

“Spain reached a deal with NATO to be excluded from a 5% of GDP defense spending target, just days before military alliance leaders gather at the summit, Prime Minister Pedro Sánchez announced on Sunday.”

“‘Spain will, therefore, not spend 5% of its GDP on defense, but its participation, weight and legitimacy in NATO remain intact,’ Sánchez stated during a televised address.”

Rutte skillfully averting a NATO summit disaster.

In a move that can only be described as a deft political maneuver, Sánchez indicated that Spain would maintain its commitments to NATO with a defense budget set at 2.1% of GDP. This figure, while not overly impressive, is a significant increase from the 1.28% that NATO previously estimated as Spain’s spending—the lowest among member states.

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“In letters exchanged on Sunday between NATO Secretary-General Mark Rutte and Sánchez, Spain was granted the exemption, and the language around the 5% spending target was clarified to exclude ‘all allies,’ according to Sánchez.”

While the 2.1% target may not exactly put Spain in the heavyweight category of military spenders, it is a notable improvement from previous levels—one that Sánchez had previously announced would rise to 2% this year, despite facing resistance domestically, including from some allies.

Read more:

Spanish Police Search Socialist Party’s HQ in Corruption Investigation, as PM Sánchez Fights Calls To Resign Over Repeated Scandals

TAGGED:AgreeAlliancesdealdefenseDerailDisputeGDPMadridNATOSpainspendSummitthreatenedWeek
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