Spain has reached NATO's benchmark of allocating 2% of its GDP to defense after a 70% increase in military spending over the past two years. That lifted Spain's defense budget to $38 billion, making it NATO's eighth-largest contributor in absolute terms among the alliance's 32 members. NATO's 2025 estimate put Spanish defense expenditure at approximately 2% of GDP. That figure covers national spending under the alliance's accounting methodology, not payments made directly to NATO. A separate estimate by the Stockholm International Peace Research Institute put Spain's 2025 military expenditure at $40.2 billion, around 50% higher in real terms than in 2024 and equivalent to about 2.1% of GDP. Differences in definitions, accounting categories and exchange-rate conventions help explain the gap between estimates. But the achievement has not shielded Madrid from renewed criticism by U.S. President Donald Trump, who described Spain's commitment as insufficient and accused it of expecting preferential treatment within the alliance during a meeting with NATO Secretary General Mark Rutte at the White House.
Despite Trump's remarks, NATO's 2025 estimates put Albania at 1.48% of GDP, Slovenia at 1.57% and Czechia at 1.86%, all below the 2% benchmark, while Spain met it. The guideline dates to the 2014 Wales Summit, where allies committed to moving toward the target by 2024. Meeting the percentage threshold does not erase differences in countries' absolute spending or military capabilities. The alliance's annual report, presented by Rutte in March, initially suggested that all members would comply with the Wales Summit pledge by 2025. Diplomatic sources now acknowledge that those projections were overly optimistic. NATO has requested additional documentation from countries falling short ahead of the upcoming Ankara summit.
Spain's position within NATO has shifted notably since the government approved an extraordinary €10.471 billion increase in security and defense spending in April 2025. The measure enabled Madrid to reach the 2% benchmark that year and, information from the cited account, required no new taxes or additional borrowing. Spain remains in the lower half of the alliance's spending rankings, but it is no longer among the countries with the smallest defense budgets. Rutte has publicly recognized Spain's efforts, noting that Prime Minister Pedro Sánchez personally assured him the country intended to reach the 2% mark. Spain met that commitment within the year. SIPRI estimates put Spain's 2025 military expenditure at $40.2 billion, while a Spanish Defence Ministry document projected basic defense spending rising from €22.6 billion in 2024 to €35.4 billion in 2026.
According to diplomatic insiders, the underlying source of friction is not Spain's actual spending but its stance on future commitments. At the NATO summit in The Hague in June 2025, allies agreed to a longer-term objective of devoting 5% of GDP to defense and security by 2035. The structure calls for at least 3.5% for basic defense requirements and allows up to 1.5% for broader defense-related investment, including critical infrastructure, ability to recover and the defense industrial base. This is a national investment target, not a requirement to transfer 5% of GDP to NATO. Allies are expected to submit annual plans showing a credible path toward the objective, with the trajectory scheduled for review in 2029. Sánchez was the only leader to openly reject the proposed goal. Several countries are unlikely to meet the ambitious target, but Spain's explicit refusal has complicated Trump's efforts to present a united front among allies.
Rutte has tried to mediate, saying Spain is committed to meeting NATO's capability objectives, which may eventually require further increases in purely military spending. Sánchez maintains that these goals can be achieved with a 2.1% allocation. He and Rutte have agreed to disagree on that point. Sánchez has argued that moving “from 2% to 5%” would cross “our red lines,” warning of sharply higher taxes on the middle class or cuts to the welfare state. Madrid now faces two distinct questions: how to maintain the 2% level under NATO's basic accounting rules and what credible path, if any, it will set toward the broader 2035 structure.
Spain has also announced additional contributions to NATO: three aerial refueling aircraft, eight fighter jets, a frigate and air defense systems. The measures are intended to help offset the reduction in U.S. forces available to NATO in crisis scenarios. Washington is urging European allies to take greater responsibility for their own defense as it shifts its focus to other regions, including the Indo-Pacific.
Another contentious issue is Spain's refusal to allow the use of its Rota and Morón bases, as well as its airspace, for U.S. and Israeli operations against Iran. Trump has also voiced disappointment with Germany, France, the United Kingdom and Italy, so Spain is not alone in this position. Sánchez, but, is the only leader to have publicly opposed involvement in the conflict, further straining relations with Washington.
Spain's diplomatic isolation came into focus when Sánchez was not invited to a recent meeting in Berlin attended by the leaders of Germany, the United Kingdom, France and Poland. They discussed strengthening NATO's European pillar and support for Ukraine ahead of the Ankara summit. Still, diplomatic sources suggest Sánchez is unlikely to become the basic target of Trump's frustration, partly because of his strong relationship with Turkish President Recep Tayyip Erdoğan, who will host the upcoming summit.
Military cooperation between Spain and Turkey has deepened. Spain's purchase of 30 Hürjet training jets in a €2.6 billion deal will encourage unprecedented collaboration between the two countries' defense industries. Spain also continues to maintain a Patriot missile battery on Turkey's border with Syria, a mission it has carried out alone for a decade. The deployment has proved valuable for monitoring drone and missile activity during recent conflicts involving Iran, the U.S. and Israel.
NATO's 2% spending guideline has faced challenges since its adoption at the 2014 Wales Summit. Most member states have gradually increased their defense budgets, but disparities remain, often reflecting differences in national priorities and economic capacity. The debate over burden-sharing and strategic autonomy continues to shape transatlantic relations, as recent developments involving Spain and its allies show. Similar tensions over international commitments have surfaced elsewhere, including the recent diplomatic maneuvering around the Egypt-Iran football match in Seattle, where broader geopolitical interests intersected with sporting events.
