Spain no longer wants to be the last of the class in NATO. Prime Minister Pedro Sánchez has announced that the country will achieve the goal of spending 2 percent of the gross diflance product for the defense already this year, long before the previous deadline of 2029 that the nation had imposed itself.
Spain, who in 2024 spent only 1.3 percent for the defense, the lowest percentage of NATO members – is under pressure, as well as other European states, by the President of the United States Donald Trump, who pushes allies to increase military spending of up to 5% and no longer wants to finance Kiev in the war in Ukraine.
Targeted investments and no tax impact
Socialist Sánchez has declared that he will achieve the goal through an additional expenditure of 10.47 billion euros, focusing on the increase in the size of the army, on telecommunications, cyber security and on the purchase of military equipment. But he assured that the new investments will not affect citizens’ pockets: the Spanish government does not provide for tax increases, growth of public debt or cuts in the social status to bring spending on defense and safety to around 34 billion euros in 2025.
“The money will come from the funds of the Recovery Fund, from the government savings thanks to economic growth, from the margin given to us by items that were included in the 2023 budget and that are no longer necessary,” said Sánchez.
The increase in spending has promised the premier, “will take place without increasing taxes, without affecting investments in the social state by a single cent and without generating a larger public deficit”. The government intends to “strengthen the safety and defense of Spain, reindustrialize, respect our commitments as a reliable partner and consolidate Spain as a central EU actor”.
Tensions with Sumar
The move, however, created tensions with the government partner, the radical left of Sumar, led by the vice premier with delegation to work, Yolanda Díaz. The latter recognized the “divergent positions” with the PSOE on defense and reiterated that Sumar is against the “Resto plan designed by Ursula von der Leyen”. However, he then tried to bother the tones, stating that the coalition “enjoys excellent health” and that it will bring “the legislature”, despite the differences on the 10.4 billion plane to bring military spending to 2% of GDP in 2025.
To simplify things for Sánchez, the fact that the plan does not require the approval of Parliament, since it is a reallocation of existing funds and the use of budget savings, without impact on taxes or deficits.
The challenges of the countries of Southern Europe
About a third of the new expenditure will be intended for telecommunications, satellites and technology Ai to create a “digital shield against hackers,” said Sánchez.
The premier stressed that southern European countries face different challenges compared to the allies of the East and must focus on borders controls, terrorism and IT attacks – all elements that, according to him, should be considered expenses for the defense.
