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Spain agrees with NATO to skip 5% defence spending target
Published by Global Banking & Finance Review®
Posted on June 22, 2025
2 min readLast updated: January 23, 2026
Global Banking & Finance Review®
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Published by Global Banking & Finance Review®
Posted on June 22, 2025
2 min readLast updated: January 23, 2026
Spain will not adhere to NATO's 5% GDP defence spending target, opting for 2.1% instead. Prime Minister Sanchez assures commitments are met.
MADRID (Reuters) -Spain agreed with the NATO military alliance to be excluded from spending 5% of its gross domestic product on defence, Prime Minister Pedro Sanchez said on Sunday.
"A 5% spending would be disproportionate and unnecessary," Sanchez said in an address on national television.
"We fully respect the legitimate desire of other countries to increase their defence investment, but we are not going to do it," he said, adding Spain could meet all its commitments to NATO, in terms of staff or equipment, by spending only 2.1% of its GDP.
Diplomats had said earlier on Sunday the 32 countries comprising NATO had agreed on a statement for the upcoming summit setting a goal of 5% of GDP for annual defence and security related by 2035 overcoming Spain's objection.
In a letter sent on Thursday, Sanchez had told NATO chief Mark Rutte his country wanted to opt out of a new 5% spending target. The letter raised concerns that Spain would derail the whole summit.
At an estimated 1.28% of GDP, Spain had the lowest proportion of expenditure on defence in the alliance last year, according to NATO estimates. Sanchez agreed in April to accelerate efforts to meet NATO's current target of 2% this year.
(Reporting by Ana Cantero, editing by Inti Landauro)
Spain agreed with NATO to be excluded from the 5% defence spending target on its GDP, as stated by Prime Minister Pedro Sanchez.
Sanchez described the 5% spending as disproportionate and unnecessary, asserting that Spain could fulfill its NATO commitments without it.
Spain had the lowest proportion of defence expenditure in NATO last year at an estimated 1.28% of GDP.
Sanchez's letter to NATO chief Mark Rutte raised concerns that Spain's request to opt out of the 5% target could derail the upcoming summit.
Other NATO countries expressed a legitimate desire to increase their defence investments, but Sanchez emphasized that Spain would not follow suit.
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