Spain Secures NATO Exemption from 5% Defense Spending Target

Spain has negotiated an exemption from NATO's proposed 5% GDP defense spending target, Prime Minister Pedro Sánchez announced during a televised address. The compromise follows diplomatic tensions as NATO members agreed on the 2035 benchmark despite Madrid's objections.

Sánchez argued the 5% requirement WOULD be "unnecessary and disproportionate" for Spain, which currently allocates just 1.28% of GDP to defense—the alliance's lowest expenditure. The prime minister maintains Spain can meet all NATO commitments with 2.1% spending, having already pledged to reach the standard 2% target this year.

The opt-out deal prevents a potential summit disruption after Sánchez formally communicated Spain's position to NATO Secretary General Mark Rutte. While supporting other members' right to increase military budgets, Spain's exemption underscores the economic balancing act facing European governments.