Previously, the country only aspired to meet the NATO goal by 2029, but in recent months Washington and Brussels have been pressuring Madrid to speed up that timeline. During a meeting with Spanish Economy Minister Carlos Cuerpo last week, U.S. Treasury Secretary Scott Bessent insisted that Spain needed to boost defense spending.
Around a third of the new funds are set to be used to improve conditions for members of Spain’s armed forces, who will receive significant raises. Another €3.26 billion will be allocated for telecommunication and cybersecurity expenditures, which Sánchez said would reinforce the country’s “digital shield,” and €1.9 billion will be earmarked for new defense and deterrence equipment.
Pacifist deterrence
The prime minister’s left-wing coalition partners and his traditional allies within the Spanish parliament are opposed to what they call the country’s “militarization,” especially if it comes at the expense of Spain’s expansive welfare programs.
Sánchez insisted that “not one cent” of the higher defense budget would be taken from existing social schemes or collected with new taxes. Instead, he said the money would be sourced from public savings generated by the well-performing Spanish economy, unused national budget funds and untapped EU pandemic recovery cash.
Sánchez also took pains to emphasize that Spain remains a “pacifist” country, and that the investments are meant to “deter those who might think of attacking Europe.”
He also stressed that many of the measures, like the €1.75 billion allocated to strengthen the Spanish armed forces’ capabilities in emergency situations, will help troops respond to domestic crises like natural disasters linked to climate change.