Spain agrees with NATO to skip 5% defense spending target

Spain has secured an exemption from NATO's new defense spending goal of 5 percent of GDP, ahead of a summit in The Hague.

On Sunday, June 22, Spain's Prime Minister, Pedro Sanchez, announced that Spain and NATO finalized the opt-out after an exchange of letters with NATO Secretary-General Mark Rutte.

Now, members, excluding Spain, will be subject to the 5 percent spending target.

Last year, Spain spent 1.28 percent of its GDP on defense, the alliance's lowest.

Sanchez pledged to raise that to 2.1 percent this year, affirming that this level is sufficient to meet its contribution to NATO without undermining Spain's welfare state commitments.

Sanchez argued escalating to 5 percent by 2035 would be "disproportionate and unnecessary," potentially forcing deep cuts in social services or higher taxes.