Spain secures NATO exemption from 5% defence spending target

Spain has reached an agreement with NATO to opt out of a proposed defence spending goal that would require member nations to allocate 5% of their GDP to defence. Prime Minister Pedro Sánchez announced the deal on Sunday, just days ahead of the NATO summit in The Hague.

A compromise on defence spending

Under the agreement, Spain will instead commit to spending 2.1% of its GDP on defence while maintaining its "participation, weight, and legitimacy" within the 32-member alliance. The exemption was formalized in a letter exchange between NATO Secretary-General Mark Rutte and Sánchez, revising the phrasing of the 5% goal to remove the term “all allies,” Sánchez explained.

The decision follows a letter sent by Sánchez to Rutte on Thursday, in which the Spanish government outlined its inability to meet the 5% target. The exemption prevents a potential disruption at the upcoming summit, where all member nations must unanimously agree on new defence benchmarks.

Spain’s stance on military spending

Spain has historically spent less on defence than its NATO counterparts, allocating just 1.28% of its GDP in 2024, according to NATO data. In April, Sánchez pledged to increase this figure to 2% by the end of 2025, a move that drew criticism from segments of his political coalition.

The 5% target proposal, championed by some NATO members, including the United States, has been a contentious issue for Spain. US President Donald Trump, expected to attend the summit, had criticized Spain as a "very low payer" in defence and argued that all members should contribute equally.

On Friday, Trump remarked, "They have to pay what everybody else has to pay," but acknowledged that Spain’s negotiations may reflect strong diplomatic efforts.

A European approach to defence

During his televised address, Sánchez reiterated Spain’s belief that Europe should take greater responsibility for its own defence. While acknowledging overlapping views with Trump on this issue, he described the 5% goal as "incompatible with our worldview."

The exemption allows Spain to avoid a significant increase in defence spending while continuing to fulfill its NATO commitments, a balance that aligns with its domestic and international priorities.