Spain is set to increase its defence and security spending to meet NATO’s 2% of GDP target by 2025, Prime Minister Pedro Sánchez announced this week, presenting a multi-billion euro investment plan the government says will strengthen national security, modernise the military, and boost Spain’s industrial capacity.

The €10.47 billion increase will be delivered through a newly approved Industrial and Technology Plan for Security and Defence, focused on five strategic areas. The plan, which will be submitted to the EU and NATO for review, is designed to meet Spain’s defence commitments without raising taxes, increasing public debt, or cutting social spending.

“This is an unprecedented step,” said Sánchez, “but we believe it is necessary to protect the values, security and future of our country.”

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What’s in the Plan?

Spain’s defence spending has traditionally fallen short of NATO’s 2% target, standing at about 1.3% of GDP in recent years. With growing instability in Europe and beyond, the government argues that increasing investment is both urgent and overdue.

The five focus areas of the plan are:

1. Military Personnel and Equipment

More than a third of the funding, €3.7 billion, will go toward better salaries, training, housing, and working conditions for troops, as well as updated protective gear and weapons.

2. Cybersecurity and Communications

Spain faces more than 1,000 serious cyberattacks a year on critical infrastructure. The plan allocates €3.26 billion to creating a ‘digital shield’ to defend hospitals, airports, transport, and energy systems. It includes investments in secure satellites and encrypted communications.

3. Strategic Defence Technology and Industry

Roughly 19% of the budget will go to research, development, and production of modern military vehicles, systems, and equipment. The government says this will help Spain reduce reliance on foreign defence suppliers and create skilled jobs in tech and engineering.

4. Emergency Response and Civil Protection

€1.75 billion will fund dual-use technology, military equipment that can also be deployed in emergencies, such as floods, fires, and other natural disasters.

5. International Peace Missions

Spain currently has around 3,000 military and police personnel deployed overseas. About €315 million will go toward improving their conditions, coordination, and mobility.

No Cuts or New Taxes, Says Government

To fund the plan, the government will redirect leftover EU recovery funds, especially those targeting cybersecurity, and will draw from budget surpluses and unspent programme allocations from 2024. Sánchez was clear: ‘There will be no cuts to healthcare, education, or climate programmes.’

Spain’s strong recent economic performance, projected to grow this year, has helped make this spending feasible, officials claim.

Broader European context

This announcement follows growing pressure on EU members to meet NATO defence spending targets, especially since Russia’s full-scale invasion of Ukraine in 2022. The war in Ukraine and shifting geopolitical threats continue to shape EU policy priorities, including defence.

Spain’s government wants to position the country as a reliable and central member of both NATO and the EU. The plan will now be reviewed by NATO and European Union authorities.

Possible points of tension

While the government insists the plan will not affect social spending, critics may question whether redirecting funds from other areas, including leftover EU recovery funds and past budget surpluses, is sustainable in the long term.

Some observers could also view the move as politically motivated, appealing to international partners while strengthening Spain’s influence in European defence discussions. Others might argue the government is taking a pragmatic step to respond to real global risks.

Still, Sánchez framed the plan as a necessary and balanced response to a more dangerous world:

“We haven’t chosen the current geopolitical climate, but we do choose how we face it — with strategic intelligence and social justice.”

What do you think?

Do you support Spain increasing its defence spending to meet NATO targets? Should more of the budget go to social services instead? Share your thoughts with us, we’d love to hear from you.

Main image: lamoncloa.gob.es