Published by Global Banking and Finance Review
Posted on January 22, 2025
MADRID (Reuters) - Spain is a "reliable partner" in NATO, Prime Minister Pedro Sanchez said on Wednesday, after U.S. President Donald Trump criticised Madrid for falling short on its financial contributions to the defence alliance.
Spain has increased defence spending by 70% in the last decade while its investment of 30% on new equipment was above the 20% required by NATO, Sanchez said in an interview for CNBC from the World Economic Forum in Davos, Switzerland.
Sanchez also said the Spanish army's participation in NATO operations was "well above the average".
"We are a reliable partner and I think you have to look more broadly to see if a country is committed or not with the security of NATO's allies," Sanchez said.
NATO allies will discuss increasing defence spending requirements from the current target of 2% of gross domestic product at a summit in the Hague this summer. Trump insists they all raise their contributions to 5% of GDP - a target no NATO member currently meets.
Spain spent $22.27 billion on defence in 2024, NATO figures show, the 10th largest contribution in absolute terms among the 31 NATO allies, but this amounts to an estimated 1.28% of its GDP, the lowest in relative terms. The U.S. spent 3.38% of GDP last year on defence, preliminary NATO figures show.
"Spain is very low," Trump said on Monday when asked about its NATO contributions. However he also wrongly suggested that Spain was a member of the BRICS group of emerging economies that comprises Brazil, Russia, India, China, South Africa and others.
(Reporting by Inti Landauro; Writing by Charlie Devereux; Editing by Gareth Jones)
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