NATO Adopts 5% Defense Target as Spain Opts Out

NATO agrees to raise defense spending goal to 5% of GDP by 2035. Spain rejects the target, citing social spending and tax hike concerns.

June 23, 2025Clash Report

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NATO members agreed Sunday to boost the alliance’s defense spending target to 5% of GDP by 2035, under pressure from the United States, but Spain immediately announced it will not comply—exposing fractures ahead of the summit in The Hague.

Spain Resists: “We’re Not Going to Do So”

Spanish Prime Minister Pedro Sánchez declared that Madrid will not pursue the 5% goal, arguing it would require unacceptable cuts to pensions or tax hikes. Spain currently spends 1.24% of GDP on defense—NATO’s lowest ratio. Sánchez claimed Spain only needs to reach 2.1% to meet NATO’s core military capability targets.

Despite agreeing to the summit’s compromise language, Sánchez insisted Spain had secured the flexibility to “determine its own sovereign path.”

New Target Splits Core and Support Defense Spending

NATO Secretary General Mark Rutte proposed the new 5% goal be split into 3.5% for core military spending (e.g., weapons, troops) and 1.5% for cyber defense and infrastructure. The final declaration, yet to be released in full, includes a revised phrasing: “allies commit,” instead of “we commit”—a semantic shift that allowed opt-outs.

The target is to be reached by 2035, with a 2029 review planned.

U.S. Pressure Mounts Under Trump

President Trump has long criticized NATO allies over low defense budgets and singled out Spain on Friday, saying it was “notorious” for under-spending. While Trump pushed the 5% benchmark, he also stated the U.S. should not be held to the same standard, citing America’s historical security contributions.

The initiative reflects Washington’s pivot toward burden-sharing, especially as it shifts strategic focus to Asia and China.

NATO Adopts 5% Defense Target as Spain Opts Out