by Temitope Oladeji
8/4/2025
Spain will channel an extra €2.08 billion ($2.28 billion) into its defence budget this year by reallocating funds to procurement contracts under the Ministry of Defence, the Spanish government announced on Tuesday.
The move comes amid mounting pressure from United States President Donald Trump urging NATO member states to meet the agreed defence spending commitments.
With defence expenditure currently at just 1.3% of its gross domestic product (GDP), Spain ranks the lowest among NATO’s 32 members in terms of military spending relative to economic output.
To meet the alliance’s target of 2%, Spain would need to boost its annual defence spending by approximately €10 billion ($10.8 billion).
However, Spain had previously committed to reaching the 2% benchmark by 2029, the Spanish government recently pledged to accelerate that timeline.
“The government intends to reach the 2% target as soon as possible,” government spokesperson Pilar Alegría stated during a press briefing during Tuesday’s cabinet meeting.
She noted that the redirected funds will be used to support existing contracts focused on the “modernisation, maintenance, and enhancement of personnel, infrastructure, and facilities.”
The decision comes in the context of broader European efforts to strengthen defence capabilities, particularly in light of rising geopolitical tensions.
Although Spain’s inability to push through new spending has been complicated by a political impasse.
Since 2023, the national budget has been extended on a provisional basis due to the minority government’s struggle to secure sufficient parliamentary support in a deeply fragmented legislature.