NATO Defense Spending: Spain’s Exception to the 5% Rule and Trump’s Pending Verdict

On June 22, NATO members agreed on a new 5% target for defense spending, according to dpa and Reuters. Countries must allocate at least 3.5% of their GDP to traditional military expenses. Additional expenditures like counter-terrorism and dual-use infrastructure can also count towards this goal. The deadline for achieving these targets is set for 2035. However, Spain has requested flexibility, aiming instead for 2.1% of its GDP. Through an exchange of letters, NATO Secretary-General Mark Rutte and Spanish Prime Minister Pedro Sánchez reached a compromise allowing Spain more autonomy in meeting capacity goals without strictly adhering to the 5% figure. This agreement reflects Spain’s concerns about maintaining social welfare programs amidst increased defense budgets. Meanwhile, U.S. President Trump criticized Spain as a ‘bad payer’ and reiterated his stance that all NATO members should contribute equally. Although Germany supported raising defense spending, many countries find the 5% target challenging. Notably, Poland led with 4.1% last year. The final NATO summit declaration may disappoint Ukraine, offering only vague promises of continued support rather than firm commitments.