Spain wants exemption from NATO 5% GDP defence spending target

As NATO leaders prepare to discuss raising defence spending to 5% of GDP at next week’s summit in The Hague, Spanish Prime Minister Pedro Sánchez has openly rejected the proposal in a letter sent to NATO Secretary-General Mark Rutte on Thursday.

"Committing to a target of 5% would not only be unreasonable but also counterproductive,” explains Sánchez in the letter, seen by Euractiv.

Strengthening European defence by increasing expenditure is “incompatible with our welfare state and our vision of the world,” Sánchez added.

In his message to Rutte, the socialist Spanish leader stressed that he has "no intention of limiting the [military] spending ambitions of other countries, nor of obstructing the outcome of next week's summit."

Instead, Sánchez proposes "a more flexible formula" for meeting NATO capability requirements in equipment and troops – one not tied to GDP percentages. He also suggests that the 5% goal should be made optional, or that Spain be “exempted” from complying, as has previously been the case for others allies.

Summit stakes

The 32 leaders of NATO member states are set to meet in The Hague next Tuesday and Wednesday, with a new defence spending target the main – and only – topic on the agenda.

Spain is currently the only holdout against approving the 5% of GDP target, a figure proposed by Rutte following pressure from US President Donald Trump, leader of the alliance's largest military power. Other countries, including Italy, have expressed reluctance and are calling for more time to meet the target.

The proposed 5% is split into two components: 3.5% of GDP for core defence spending – up from the current 2% benchmark – and an additional 1.5% for “defence-related spending”, such as aid to Ukraine, cyber capabilities, resilience, and infrastructure.

According to Sánchez, Madrid can meet NATO's capability requirements by spending 2.1% of its GDP on defence.

The Spanish prime minister also questioned the validity of using GDP as a benchmark. “Capabilities are paid for with euros, not GDP percentages,” he wrote.

Domestic headwinds

Spain’s resistance is not the only stumbling block for alliance-wide agreement at the upcoming summit. Unresolved issues around deadlines and annual reporting mechanisms also remain.

Sánchez is facing pressure at home as well. His junior coalition partner, the left-wing Sumar party, has previously voted against increasing defence spending in Parliament, warning that a larger military budget would “come at the cost of cuts in social policies”.

Sumar president Yolanda Díaz has even advocated for Spain to withdraw from NATO and has threatened to break up the coalition over Sánchez’s “rearmament plan”.

(aw)