Spain under Pressure to Increase Defense Spending Amid EU and NATO Demands

Saturday 22 February 2025 - 11:10

The European Union is expressing growing concern over Spain’s reluctance to boost its defense budget, viewing the country as a weak link in military investment. The EU Commission is particularly critical of the left-wing coalition party Sumar, led by Second Vice President Yolanda Díaz, for opposing increased military spending. "Spain has not done enough so far and must do more in the future," EU sources indicate. Meanwhile, NATO is also intensifying pressure, emphasizing that member states must raise their contributions.

NATO Secretary-General Mark Rutte recently warned nations failing to meet the 2% GDP defense spending target—including Spain, which currently allocates only 1.29%—that further inaction could prompt stronger demands from Washington, particularly from U.S. President Donald Trump. Rutte also hinted that future spending targets could exceed 3% and urged an ambitious timeline for compliance, a topic set for discussion at the upcoming NATO summit in June in The Hague.

To address the issue, the EU is preparing to introduce measures in the coming weeks that would ease fiscal constraints on defense expenditures. European Commission President Ursula von der Leyen has proposed allowing individual nations to exclude military spending from their deficit calculations, rather than adopting a collective EU approach. However, Spain favors shared mechanisms such as issuing European defense bonds or utilizing financial institutions like the European Investment Bank (EIB) and the European Stability Mechanism (ESM). Spanish Foreign Minister José Manuel Albares even suggested using frozen Russian assets for defense funding, a proposal echoed by Polish Prime Minister Donald Tusk.

While joint financial strategies remain under discussion, EU officials stress that individual nations must also increase their military budgets. Rutte has previously suggested that some funds currently allocated to pensions and healthcare may need to be redirected to defense, acknowledging the sacrifices required.

Spain’s limited commitment to military spending has not gone unnoticed. A recent editorial in The Economist pointedly criticized the country’s hesitance to rearm, comparing it to Hungary’s attempts to undermine European defense efforts. The EU sees defense as a top priority, with Economy Commissioner Valdis Dombrovskis reaffirming that security, alongside economic competitiveness, is now at the forefront of the Commission’s agenda. He emphasized that Europe can no longer rely solely on the United States for its defense, reinforcing the urgency of the proposed fiscal adjustments.