Spain's Prime Minister Pedro Sánchez argues that meeting the proposed target would be incompatible with Spain's welfare state and world vision.
Spain has rejected a NATO proposal to spend 5 percent of gross domestic product on defense needs, calling it 'unreasonable.' In a letter sent to NATO Secretary-General Mark Rutte, Prime Minister Pedro Sánchez stated that Spain cannot commit to a specific spending target in terms of GDP at the upcoming NATO summit.
Any agreement to adopt a new spending guideline requires consensus among all 32 NATO member states.
The rejection risks derailing the summit, which US President
Donald Trump is due to attend.
Most US allies in NATO are on track to endorse Trump's demand for a 5 percent defense spending target.
However, Spain was the lowest spender in the trans-Atlantic alliance last year, directing less than 2 percent of its GDP towards defense expenditure.
Sánchez previously announced plans to increase defense spending by 10.5 billion euros ($12 billion) in 2025 to reach NATO's previous target of 2 percent of GDP.
Sánchez called for a 'more flexible formula' that would either make the new spending target optional or exclude Spain from its application.
He emphasized that meeting the 5 percent target would require cutting public services and scaling back other spending, including investments in the green transition.
Instead, Spain will need to spend 2.1 percent of GDP to meet the Spanish military's estimated defense needs.
The rejection comes amid corruption scandals involving Sánchez's inner circle and family members, increasing pressure on the Spanish leader to call an early election.
Increased military spending is also unpopular among some coalition partners.
NATO allies agreed to spend 2 percent of GDP on military expenditure after Russia's invasion of Ukraine in February 2022.
The alliance now aims to raise the bar to 3.5 percent for core defense spending and an additional 1.5 percent for infrastructure improvements and societal preparedness.
Several allies, including Poland and the Baltic countries, have committed to reaching the new spending goal.
However, other nations such as Belgium, Canada, and Italy will struggle to increase their security spending.
The specific time frame for achieving the agreed-upon spending goal has not been determined, with an initially proposed target date of 2032 under consideration.