NATO: Can Spain’s ‘No’ to the 5% Target Hinder Defense Spending Increase?

Shockwaves have been sent through NATO ranks following Spanish Prime Minister Pedro Sanchez’s request for his country to be exempted from the alliance’s proposed defense spending target increase to 5% (from 2%). This announcement came just a week before the scheduled NATO summit, where the decision must be made, with scenarios being debated for achievement by 2028, 2030, or 2032. Spain seeks an exception from NATO’s potential future goal of allocating 5% of GDP to defense spending, as stated by Prime Minister Pedro Sanchez ahead of the upcoming summit in The Hague. “Spain will continue to fulfill its duties over the next years and decades and will actively contribute to European security architecture. However, Spain cannot commit to a specific spending target regarding GDP at this summit,” Sanchez wrote to NATO Secretary-General Mark Rutte, according to Politico. Spain currently has the lowest military expenditures among NATO members, dedicating only 1.3% of its GDP to defense in 2024. Earlier this year, Sanchez noted that Russia does not pose an immediate threat to Spain’s security. As NATO countries meet next week for the first summit since Donald Trump’s return to the White House, the U.S. President wants members to spend 5% of their GDP on defense—a significant leap from the current 2% target, which Madrid is only set to achieve this year. Addressing Trump, Rutte suggested the 5% target include 3.5% of GDP in pure military spending and 1.5% for defense-related issues like mobility and cybersecurity. NATO’s decision-making process relies on consensus, meaning one member can block others with a veto. Earlier this month, Spanish Defense Minister Margarita Robles stated that Madrid would not hinder NATO allies from agreeing on a new 5% target but insisted Spain would stick to the 2%. The Spanish government seeks either flexible wording making the target optional or an appropriate exemption for Spain. Conversely, Swedish political parties agreed on June 19, 2025, to reach the 5% goal by 2032 and borrow up to 300 billion kronor (27 billion euros) to achieve it. Sanchez argued Spain doesn’t need to spend 5% of its GDP to meet NATO-agreed capability targets involving new weapon stockpile goals. He also warned that a 5% defense spending goal could jeopardize the country’s welfare system, force tax increases on the middle class, reduce green transition commitments, and limit international development cooperation.