In the latest NATO summit, Spanish Prime Minister Pedro Sánchez succeeded in negotiating an exemption from increasing defense spending, setting Spain apart from its allies in the alliance. As other NATO members committed to boosting their defense budgets to 5% of GDP during the summit, Sánchez reaffirmed Spain’s position to cap its defense spending at 2.1%, deeming it a “sufficient and realistic” figure. However, this decision has drawn criticism from U.S. President Donald Trump, who threatened Spain with potential trade tariffs, asserting Spain was seeking an undue advantage and would need to compensate by adjusting trade policies.
In response to these allegations, Sánchez highlighted that European trade policy is driven by the European Commission. “Trade policy is directed from Brussels,” Sánchez stated, firmly positioning Spain as a nation open to trade and amicable with the United States. Nonetheless, Trump’s remarks have left European officials, including Belgian Prime Minister Bart De Wever, puzzled over the specifics of potential tariffs targeting Spain.
Internally, Sánchez faces escalating challenges, including corruption allegations within his political party, the Socialists, which have fueled calls for early elections. Despite this, Sánchez has resisted such pressure, continuing his stance against NATO’s defense spending demands. Political analyst Montserrat Nebrera commented on Sánchez’s resistance to meeting NATO’s 5% defense spending goal, noting it as a nod to domestic partners skeptical of increased military expenditure.
Spain is recognized as NATO’s lowest spender according to last year’s figures, recording defense expenditures at approximately 1.28% of GDP. Sánchez announced intentions to reach a 2% target this year, a plan met with criticism by some left-wing allies. The decision to secure a spending opt-out has not only reverberated on NATO’s international platform but also stirred discontent among domestic business sectors.
Antonio Garamendi, head of the Spanish Confederation of Business Organizations, expressed concern over the country’s alignment with NATO allies, stressing the potential hazard in diverging too far from collective European strategies. Garamendi warned about vulnerabilities in certain Spanish industries, such as steel, automobiles, and olive oil, that could suffer if targeted by U.S. tariffs. He emphasized the importance of maintaining unity with the rest of Europe to avoid repercussions that could destabilize sensitive economic sectors.