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Spain allocates record funds for defense and army modernization at year’s end

Which military projects will receive funding and why it matters for the country

Spain invests over €2 billion in defense as year ends. Decision made ahead of the holidays. Find out which projects will see funding and what this means for the country.

At the very end of 2025, the Spanish government approved a large-scale increase in the military budget. During the Council of Ministers meeting on December 23, more than 2 billion euros were allocated for the development of the defense sector. This decision was not widely announced officially to avoid unnecessary controversy within the coalition and not to strain relations with left-wing parties, for whom military spending remains a highly sensitive issue.

The bulk of this funding will go toward procuring new vehicles for the army, as well as modernizing logistics and infrastructure. Special attention has been given to the Rota base in Cádiz, where major upgrades are planned to improve fuel storage and transport. In addition, a significant amount will fund the S-80 submarine program and strengthen cybersecurity.

Defense Funding

According to NATO estimates, Spain has already reached the target of allocating 2% of GDP to defense. To meet this commitment in 2025, the country needed to invest over 10 billion euros so that the total military budget would exceed 33 billion. The government’s new decision further underscores Madrid’s commitment to Europe’s collective security and to fulfilling its allied obligations.

On Christmas Eve, the authorities approved not only domestic spending but also an additional contribution of 100 million euros to NATO. These funds are intended to support Ukraine’s defense capabilities, underscoring Spain’s role in international efforts to ensure stability on the continent.

Key projects

Of the total amount, more than half — 1.041 billion euros — has been allocated for the purchase of medium and heavy army trucks. The contract is set for four years, with an option to extend. This will allow the armed forces to modernize their vehicle fleet and enhance unit mobility.

Another major expenditure is the revision of the order for the construction of four S-80 submarines. A total of 432 million euros has been set aside for this purpose. The funds will be used to address technical flaws identified during the project implementation as well as to purchase the necessary spare parts.

In the field of cybersecurity, 353.5 million euros in funding is planned. This money will be used to strengthen the Ministry of Defense’s information infrastructure protection. The contract is for three years with an option to extend, aiming to provide sustainable protection against cyber threats.

Infrastructure and logistics

The Rota base in Cádiz will receive 32.4 million euros for the construction of new fuel storage facilities and the installation of pipelines. This site is considered strategic for European defense, as it supplies ships and allied military equipment.

A contract has also been approved for technical support and logistical maintenance of the Navy’s arsenals. A total of €28.5 million has been allocated for this purpose over two years, with the option to extend. This aims to improve warehouse efficiency and ensure the fleet receives necessary resources in a timely manner.

Ministry’s stance

Defence Minister Margarita Robles emphasized that Spain remains a reliable NATO partner and fully meets its commitments. She noted that it’s not just about the percentage of GDP spent, but also about real capabilities supplied to the Armed Forces through such investments.

Officials point out that the new investments will not only strengthen national defense, but also support domestic industry, employment, and technological advancement. In the coming years, Spain will continue to modernize its military and play an active role in international defense initiatives.

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