Spain commits to spending €10.5 billion extra on defence plan to meet NATO and EU targets
The government has promised that its increased military spending will not affect the welfare state
President of the government of Spain, Pedro Sánchez, has announced a sweeping €10.5 billion plan to boost the country’s defence and security capabilities, marking a major step towards fulfilling Spain’s long-standing NATO commitment to allocate 2% of its GDP to military spending by the end of 2025, something that the European Union had asked the country to commit to.
The plan, approved by the Council of Ministers, will be submitted for evaluation by the EU and NATO. It represents a significant acceleration of Spain’s initial pledge to meet the target by 2029. Sánchez made it clear that the investment will not come at the cost of social spending or lead to a public deficit, a worry of other political parties, including his partners in the coalition government.
“We are going to do it without touching one euro cent in the welfare state,” he said at a press conference in Moncloa.
A large portion of the funds will come from the reallocation of European Next Generation funds, as well as budget surpluses and savings from reduced debt interest payments. The plan is designed to strengthen Spain’s military readiness while also supporting dual-use technologies that can benefit civilian infrastructure.
The breakdown of the investment includes 35% to improve the working conditions and equipment of the Armed Forces, 31% to enhance telecommunications and cybersecurity capabilities, 19% for new defence equipment, and 17% to boost the army’s role in emergency management and to protect Spanish troops abroad.
Sánchez emphasised the importance of modernising Spain’s defence in the face of new threats, noting that the country faces more than 1,000 cyber-attacks annually on critical infrastructure. “Europe’s enemies no longer just use tanks and missiles,” he warned.
Despite internal friction within the governing coalition, particularly from the left-wing Sumar party, Sánchez insisted that disagreements have been handled through “respect and dialogue”. He also promised to explain the details of the plan to Congress, although it will not require a vote, as it does not involve new taxes or additional borrowing.
The government estimates that 87% of the investment will remain in Spain, supporting jobs and economic growth across the autonomous communities, with projections of over 96,000 new jobs and a GDP boost of up to 0.7 percentage points.
Image: Ejército de Tierra, Ministerio de Defensa / Gobierno de España
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