Published by Global Banking & Finance Review®
Posted on March 26, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleSpain's PM Sanchez announces a plan to boost defence spending, aiming to meet NATO targets and enhance European security by summer.
MADRID (Reuters) -Spain, which has NATO's lowest defence spending as a share of its economy, will outline and start implementing a plan to boost the defence sector before the summer, Prime Minister Pedro Sanchez told lawmakers on Wednesday, without providing details.
"The objective of this plan is for Spain to contribute to and, at the same time, benefit from this technological and industrial stimulus to strengthen the European security and defence area, while remaining faithful to our principles," he said in a speech.
Spain spent just 1.3% of gross domestic product on defence in 2024 but has committed to meeting NATO's 2% target by 2029, and Sanchez says it will do so sooner than that. He is seeking to keep pace with European partners worried about Russia's threat and U.S. unreliability under President Donald Trump.
He has also argued that southern European countries have different challenges to those faced by eastern flank allies, and need to focus on border controls, fighting terrorism and cyber attacks, which he said should count as defence spending.
Sanchez suggested the creation of a joint EU fund for defence, similar to one approved to finance the recovery from the COVID 19 pandemic. The European Commission has already proposed that the bloc raise 150 billion euros for loans to governments for joint defence projects.
He promised that any increase in investment in security and defence would be carried out without cutting spending on social or environment policies.
Sanchez faces opposition at home from left-wing allies reluctant to sacrifice social spending for defence.
Conservative opposition leader Alberto Nunez Feijoo said that Sanchez, who heads a minority government, had no way to meet his commitments.
"You have no budget, you have no majority, you have nothing," Feijoo said in a response in the lower house.
(Reporting by Inti LandauroWriting by Aislinn LaingEditing by Andrei Khalip and Peter Graff)
The article discusses Spain's plan to boost defence spending to meet NATO targets and enhance European security.
Spain aims to meet NATO's 2% GDP defence spending target by 2029, possibly sooner.
Sanchez faces opposition from left-wing allies who are reluctant to cut social spending for defence.
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