MADRID – Spain, which spends the lowest proportion of its economy on defence among NATO allies, will unveil and start implementing a plan to boost its defence industry before summer, Prime Minister Pedro Sanchez told lawmakers on Wednesday. But he refused to provide details.
Sanchez highlighted that the plan’s goal is to increase Spain’s contribution to European security while taking advantage of technological and industrial development. “The goal of this plan is for Spain to contribute to and, at the same time, take advantage of this technological and industrial stimulus to reinforce the European security and defence area, being loyal to our principles,” he said.
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Spain spent just 1.3% of GDP on defence in 2024, well short of NATO’s 2% benchmark. Yet the nation has committed to reaching the threshold by 2029, with Sanchez predicting Spain will hit the target ahead of schedule. His government seeks to join European partners that are worried about security threats from Russia and ambiguity over the commitment of the U.S. under President Donald Trump.
Defence Priorities and Projected EU Fund
Sanchez noted that southern nations in Europe experience different security threats compared to their eastern neighbors. He emphasized that issues like border management, counterterrorism, and cyber defence should be viewed as part of defence budgets.
To complement European security efforts, he suggested setting up a joint EU defence fund, similar to the COVID-19 recovery fund. The European Commission has also recommended raising €150 billion to lend money to member states to finance common defence initiatives.
Balancing Defence and Social Spending
The prime minister assured that additional investment in security and defence would not be at the cost of social or environmental policy. His plan is opposed by left-wing allies who are against diverting money from social programs to defence spending.
Conservative opposition leader Alberto Núñez Feijóo rejected Sanchez’s proposal, claiming that the prime minister does not have the political support he needs. “You have no budget, you have no majority, you have nothing,” Feijóo insulted in the parliamentary meeting.
