Overview and Background

Spain has successfully negotiated an exemption from NATO's defense spending target of 5% of its GDP, as confirmed by Spanish Prime Minister Pedro Sánchez on Sunday. The announcement comes just days before a NATO summit scheduled to begin on Tuesday in The Hague, where leaders will discuss increased defense spending commitments amid ongoing geopolitical tensions. Sánchez stated that Spain would maintain its commitments to NATO by spending 2.1% of its GDP on defense, a figure he argues is sufficient for the country to meet its obligations.

This exemption was reached after several days of diplomatic discussions, during which Sánchez faced pressure from U.S. President Donald Trump, who has consistently advocated for increased defense spending among NATO allies. The new agreement allows Spain to align with NATO's defense objectives without adhering to the controversial 5% target, which Sánchez described as "unreasonable" and "counterproductive." NATO Secretary-General Mark Rutte indicated that the language of the spending commitment was softened to reflect a more flexible approach, stating that "allies commit" rather than "we commit."

Key Findings

• Spain will not be required to meet the 5% GDP defense spending target, allowing it to allocate 2.1% instead.
• The agreement was reached with the approval of all 32 NATO member nations, following intense negotiations.
• In 2024, Spain's defense spending was estimated at 1.28% of GDP, the lowest among NATO members.
• The new spending targets include a commitment to increase core military spending to 3.5% and an additional 1.5% for defense-related expenditures.
• Trump criticized Spain's previous low defense spending, labeling it a "low payer" and urging compliance with NATO guidelines.

"We fully respect the legitimate desire of other countries to increase their defense investment, but we are not going to do it," said Sánchez.

The forthcoming NATO summit is expected to address broader defense spending strategies and the implications of ongoing conflicts, notably in Ukraine and the Middle East. While some NATO members are positioned to comply with the new targets, others may struggle to meet the increased spending requirements.