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NATO sets new 5% defense spending target—Spain refuses to join

Samira Vishwas | June 24, 2025 12:12 AM CST

At a critical moment for Euro-Atlantic security, NATO allies have agreed to a new and ambitious defense spending target of 5% of gross domestic product (GDP)—a significant increase from the long-standing 2% threshold. Spain has openly rejected the plan, exposing a rare fracture within the alliance ahead of a key summit in The Hague.

The updated benchmark, proposed by NATO Secretary-General Mark Rutte, includes:

3.5% for direct military expenditures
1.5% for indirect defense needs, such as cybersecurity and military logistics infrastructure

Spain opts out—and faces pushback

Spanish Prime Minister Pedro Sánchez swiftly pushed back against the new goal, insisting that Spain’s current defense budget—2.1% of GDP—is sufficient to meet NATO’s military requirements.

In a televised interview, Sánchez stated:

“We respect other countries’ decisions to raise their defense spending, but we will not do the same.”

According to NATO figures, Spain currently spends only 1.24% of its GDP on defense, making it the lowest spender in the alliance.

NATO Secretary General Mark Rutte addresses a press conference a day prior to a meeting of The North Atlantic Treaty Organisation (NATO) in The Hague, on June 23, 2025. (AFP Photo)

However, Secretary-General Rutte publicly contradicted Madrid’s stance, stating Monday:

“NATO has no opt-out, and NATO doesn’t know side deals.”

His remarks made it clear that no member state is exempt from the new 5% expectation.

To prevent a public rupture, NATO negotiators introduced softer language into the summit declaration, changing “we commit” to “allies commit.” A letter seen by Reuters further revealed that Rutte offered Sanchez “flexibility” to meet capability goals according to Spain’s own timeline—though this was not intended as a formal exemption.

Still, officials maintain that Spain’s 2.1% spending falls short, particularly since many of NATO’s military capability targets are classified, making public verification of sufficiency impossible.

In a photo released by the White House via X, US President Donald Trump is seen in the Situation Room of the White House on June 21, 2025 in Washington, DC. (AFP Photo)

Trump’s criticism of Spain and U.S. ambiguity

Former U.S. President Donald Trump, a long-time critic of NATO spending disparities, reignited pressure by urging full compliance from all allies.

“Spain is famous for not paying. They need to pay like everyone else,” Trump said.

Ironically, Trump also hinted that the U.S. may not meet the 5% target itself, pointing to America’s historical role in safeguarding Europe.

Currently, U.S. defense spending stands at 3.19% of GDP.

Domestic politics, budget priorities in Spain

Sánchez warned that complying with the 5% goal would require either:

Severe cuts to social programs, such as pensions
Significant tax increases, neither of which are politically viable ahead of Spain’s July 20 Senate elections, where his Socialist Party risks losing ground

This internal political calculus largely explains Madrid’s refusal to adopt the new benchmark.

NATO officials insist that the shift toward 5% is not symbolic, but a reflection of a new era of permanent strategic competition.

With Russia’s military assertiveness rising and the U.S. increasingly focused on the Indo-Pacific, European allies are under mounting pressure to shoulder more of the continent’s defense burden.

The new defense target includes a 2035 implementation deadline, with an interim review scheduled for 2029.

June 23, 2025 06:09 PM GMT+03:00