NATO faces impasse as Spain rejects defence spending deal

NATO is grappling with a last-minute block from Spain on an ambitious defence spending agreement ahead of a critical summit in The Hague next week. The proposed deal, championed by NATO leadership to meet the demands of former US President Donald Trump, has been upended by Spanish Prime Minister Pedro Sanchez, who strongly opposes the plan.

Spain’s opposition disrupts NATO unity

In a pointed letter to NATO Secretary General Mark Rutte, Sanchez rejected the proposed commitment to allocate 5% of GDP to defence spending. He described the target as "unreasonable" and "counterproductive," triggering an uproar among member states. Madrid’s stance has disrupted preparations for the summit, where leaders aimed to present a unified front on military spending.

Negotiations held at NATO headquarters in Brussels on Friday ended without a resolution. Diplomats indicated that talks could extend through the weekend in an effort to salvage an agreement before the summit kicks off on Tuesday. "There is no clarity yet," said one diplomat, speaking anonymously due to the sensitive nature of the discussions.

The proposed compromise and its stakes

NATO Secretary General Rutte has been pushing for a compromise to appease Washington’s demands. The plan involves splitting the 5% target into two categories: 3.5% for core military expenses and 1.5% for broader defence-related expenditures, including infrastructure and cybersecurity. Most European allies have reluctantly agreed to the framework, but Spain remains an outlier.

Spain’s resistance poses a serious challenge, as NATO members fear Trump’s potential backlash. The former US president has previously threatened to withdraw protection from nations he deems unwilling to meet spending expectations. Without an agreement, concerns are mounting over the alliance’s cohesion and credibility.

A political tightrope for Spain

Spain’s defence spending has historically lagged behind NATO’s expectations. The country is projected to meet NATO’s current 2% GDP target this year following a €10 billion ($11.5 billion) increase in its military budget. However, Sanchez faces domestic political pressures from his junior coalition partner, the far-left Sumar alliance, which staunchly opposes increased military expenditures.

The standoff underscores the broader challenges NATO faces in balancing US demands with the diverse political and economic realities of its European members. As diplomats scramble to resolve the impasse, the outcome could shape the tone and unity of the alliance at a time of heightened global tensions.