Prime Minister Pedro Sánchez announced that Spain had secured a landmark exemption from NATO’s contentious 5% defence spending target, declaring the country would allocate “2.1% [of GDP] on defence, no more and no less,” according to Euractiv.
The breakthrough followed days of diplomatic tension after Sánchez publicly rejected the proposed hike in a letter to NATO Secretary-General Mark Rutte, arguing it would “not only be unreasonable but also counterproductive” for Spain’s welfare state.
The resolution hinged on a critical wording change in the alliance’s draft summit statement. Language was amended from “we commit” to “allies commit” to the 5% goal, comprising 3.5% for core military needs and 1.5% for defence-related infrastructure and cybersecurity.
This semantic shift permitted Spain to bypass the headline target while formally endorsing the collective pledge. Rutte confirmed in writing that Madrid retained “flexibility to determine its own sovereign path” to meet NATO capability requirements. Sánchez framed the outcome as a victory for national sovereignty.
Trump’s dual demands
The compromise emerged despite pressure from US President Donald Trump, who insisted NATO members “should absolutely” spend 5% but controversially exempted the United States.
I don’t think we should. But I think they should. We’ve been supporting NATO so long, in many cases, I believe, paying almost 100% of the cost.
The agreement averts a crisis ahead of this week’s summit in The Hague, where leaders aim to show unity amid escalation in the Middle East and the ongoing war in Ukraine. However, Spain’s initial resistance threatened to derail proceedings, sparking fury among eastern members like Poland and the Baltics, which endorsed the 5% target.
Germany and the Netherlands supported Rutte’s phased approach, while Italy secured a longer deadline, extending the target horizon to 2035 instead of 2032.
While Sánchez insists Spain’s 2.1% spending suffices for NATO capability targets, alliance officials privately question whether this meets secret operational requirements. Spain remains NATO’s lowest relative spender, having only reached the previous 2% goal this year via a €10.5 billion injection.
