Lorraine Williamson
As NATO leaders gather in The Hague, Spain has successfully secured support for a flexible defence budget strategy, sidestepping the rigid demand to commit 5% of its GDP. The country’s tailored approach to military spending has now been formally recognised by the alliance, signalling a shift towards more adaptable and context-based investment models.
Prime Minister Pedro Sánchez confirmed that Spain will maintain its current defence allocation at 2.1%, while focusing on smarter and more strategic investment.
The agreement marks a diplomatic win for Madrid at a time when tensions around defence contributions are once again dominating transatlantic conversations.
Quality over quantity: Spain’s case for smarter military funding
Rather than signing up to a blanket increase, Spain has argued for a more context-driven model—an approach that NATO has now accepted in a draft declaration seen by laSexta. The text allows member nations to submit their own defence investment plans, “regardless of the share of GDP this represents”.
Sánchez, reiterating Spain’s commitment to NATO objectives, stated from Moncloa, “It’s not about spending more, but spending better.” He framed the policy as both responsible and strategic, aligning with Spain’s broader social and economic priorities.
Letter to Rutte reflects shared understanding
In a direct communication to outgoing Dutch Prime Minister Mark Rutte—who is widely tipped to become NATO’s next Secretary General—Sánchez made clear that a mandatory 5% target would be unfeasible for Spain. He argued for flexibility, citing the country’s need to also tackle pressing social and environmental issues.
That argument appears to have struck a chord. Rutte reportedly recognised Spain’s sovereign right to chart its own defence pathway, with a review of progress expected by 2029, depending on the evolving global security landscape.
Tensions with Washington remain
However, not everyone is on board. US President Donald Trump, a vocal critic of NATO members he deems “free riders”, slammed Spain for years of “underinvestment” and reiterated calls for “fair burden sharing”. His remarks have reignited debates about European defence autonomy versus American expectations within the alliance.
Still, Spain is standing firm. As the NATO summit gets underway, Sánchez is expected to present his vision of a more intelligent and balanced military strategy—one that avoids overextension while honouring alliance commitments.
Defence budgets
Spain’s stance could set a precedent for other NATO countries hoping to recalibrate defence budgets in light of domestic pressures. With fiscal responsibility and security needs now more intertwined than ever, the battle lines in NATO may be less about percentages—and more about principle.
Spain’s approach underscores a growing appetite within Europe for autonomy, nuance, and national context in alliance commitments—signalling a potential shift in the way defence targets are defined for the decade ahead.