Spain reaches an agreement with NATO that exempts it from spending 5% of GDP on defense.

Prime Minister Pedro Sánchez announced this Sunday a "very positive agreement" with NATO to increase Spain's military spending to 2.1% of its Gross Domestic Product (GDP). He rejected the 5% target, arguing that it "makes no sense" and would be "a waste of billions of euros" that would not help make Spain "more secure."

"We respect the legitimate desire of other countries to increase their defense investment, if they so wish, but we are not going to do so," he revealed during his appearance this Sunday at the Moncloa Palace shortly after six in the evening after reading an institutional declaration.

A pact he described as "very positive" since it allows us to "fulfill the transatlantic alliance" and "preserve its unity" without increasing defense spending.

Sánchez emphasized that spending 2.1% is sufficient to "maintain all the personnel and equipment" required for Spanish defense policy: "No more, no less." On the other hand, reaching 5% would divert much of that money to strengthen other countries' industries .

After highlighting that the world is currently going through "turbulent times" due to the war in Ukraine and the rising tensions in the Middle East, Sánchez recalled that NATO has been demanding that its members double or even triple each country's defense spending and emphasized that "we are not going to do that."

"It would be disproportionate and unnecessary" to reach 5% of GDP, even if others do so."

The head of the Executive asserted that "it would be disproportionate and unnecessary" to reach 5% of GDP, even though others do so, because there is a "normal and inevitable asymmetry" and because their economic differences are "very notable."

In recent days, negotiations have focused on overcoming Spain's objections, which had refused to accept Rutte 's formula of dedicating 3.5% of GDP to pure military spending and reserving another 1.5% for infrastructure and security investments, a formula that NATO uses to round out the 5% that US President Donald Trump has been demanding for months.

Spain does accept the Hague summit declaration, having successfully introduced changes to the language to make the commitment to the new spending target more open.

This was reflected in another letter from the Prime Minister to the NATO leader, confirming Spain's "yes" to the summit declaration, understanding that the achievement of the capability objectives is respected "in a timely manner, regardless of the percentage of GDP this represents."

In this way, in an exercise of diplomacy, the declaration will reflect that the allies are committed to 5%, but will not refer to all NATO members, thus meeting Spain's expectations, explained the Moncloa, in order to respect the fact that the spending is associated with fulfilling military obligations to NATO and not linked to an "arbitrary" spending percentage.

For weeks, the government has insisted that allocating 2% of GDP to the defense budget provides "sufficient" funding for Spain to meet the military capability requirements agreed upon by NATO allies.

Spain's military requirements have a significant naval component, including logistics, infrastructure, and military mobility, allied sources explained to Europa Press weeks ago when NATO defense ministers agreed on the new objectives in Brussels.

In any case, NATO headquarters insists that the new requirements will not be met without at least 3% of military spending, so Spain will have to maintain its upward trend of defense investment .

Negotiated over the past year, the objectives set short-term military capabilities, ranging from five to ten years, to ensure NATO's effective deterrence against security threats, particularly a Russian attack on allied territory.

Faced with new requirements that are 30% more ambitious on average, NATO warns that "the change in pace is quite significant" and requires a shift in investment thinking after decades of underinvestment in the military sector.