NATO leaders are expected to agree this week that member countries should spend 5% of their gross domestic product on defense, with an exception for the Spanish state. Spain has reached an agreement with NATO to be exempt from the 5% of GDP spending target, while President Donald Trump has said the figure should not apply to the United States, only to its allies.
Announcing Spain’s decision on Sunday, Prime Minister Pedro Sanchez said the spending pledge language in the final NATO summit communique would no longer refer to “all allies.” This raises questions about the demands that other alliance members such as Belgium, Canada, France and Italy, who would also have difficulty increasing security spending by billions of dollars, might insist on. On Friday, Trump insisted that the US has supported its allies for years and now they must take action.
“I don’t think we should, but I think they should,” Trump said. “NATO will have to deal with Spain,” he added.
Trump has also called Canada “a weak payer.” The 5% target is made up of two parts. Allies will agree to increase defense spending to 3.5% of GDP, up from the current target of at least 2%, which 22 of the 32 countries have achieved. Money spent on arming Ukraine will also be counted.
Another 1.5% would include improving roads, bridges, ports and airports so that armies can be better deployed, putting in place measures to combat cyber and hybrid attacks, and preparing societies for future conflicts.
The second basket of expenses is easy for most nations, including Spain. But 3.5% for basic expenses is a big challenge. Last year, Spain spent 1.28% of GDP on its military budget, according to NATO estimates, making it the lowest spender in the alliance. Sanchez has said that Spain would be able to meet its NATO commitments by spending 2.1% of GDP on defense needs.
Spain is also among Europe’s smallest suppliers of arms and ammunition to Ukraine, according to the Kiel Institute, which tracks such support. It is estimated to have sent military aid worth around 800,000 euros since the Russian invasion in 2022.
Beyond Spain’s economic challenges, Sanchez has other problems. He relies on small parties to govern, and corruption scandals have engulfed his inner circle and family members. He is under increasing pressure to call early elections.
