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The Advertiser
3 hours ago
- Business
- The Advertiser
Spain may derail NATO summit by resisting defence spend
Spain has asked to opt out of NATO's plan to increase members' defence spending to five per cent of their gross domestic product, a move that could derail a summit at which the military alliance plans to ask them to commit to the target. In a letter sent to NATO chief Mark Rutte on Thursday and seen by Reuters, Prime Minister Pedro Sanchez requested a "more flexible formula" that either makes the spending target optional or excludes Spain from its application. He said it was not Spain's intention to obstruct the outcome of next week's NATO summit. But any agreement to raise defence spending - a response to a request by US President Donald Trump - would require unanimous approval by the 32 member states. "Committing to a five per cent target would not only be unreasonable, but also counterproductive, as it would move Spain further away from optimal spending and would hinder the EU's ongoing efforts to strengthen its security and defence ecosystem," Sanchez wrote in the letter. "It is the legitimate right of every government to decide whether or not they are willing to make those sacrifices. As a sovereign Ally, we choose not to," he added. At an estimated 1.28 per cent of GDP, Spain had the lowest proportion of expenditure on defence in the alliance last year, according to NATO estimates. Sanchez agreed in April to accelerate efforts to meet NATO's current target of two per cent. Rutte has proposed that member states agree to boost defence spending to 3.5 per cent of GDP and commit a further 1.5 per cent to broader security-related spending. Leaders across NATO say its current spending goal is no longer sufficient, with Russia posing a greater threat since its 2022 invasion of Ukraine. Asked for comment on Spain's request, a North Atlantic Treaty Organization official said: "Discussions among Allies on a new defence investment plan are ongoing." The US, which has been Kyiv's primary military backer since Russia's invasion, spent an estimated 3.38 per cent of GDP on defence in 2024, the third-most among NATO nations, according to the alliance. Trump has said NATO members are not spending their fair share on defence and has threatened not to come to the aid of those falling short. Sanchez, however, said that rushing to a five per cent target would harm European Union efforts to become self-reliant in defence production, pushing governments to procure equipment outside the bloc and that it was "incompatible with our welfare state and our world vision". Some other NATO members have also questioned the timeline, saying it is too rapid, but are generally willing to sign up, diplomatic sources say. Italy, for example, wants the deadline moved to 2035 from 2032 and the removal of a requirement to increase spending by 0.2 per cent per year, a source with knowledge of the matter said. Spain has asked to opt out of NATO's plan to increase members' defence spending to five per cent of their gross domestic product, a move that could derail a summit at which the military alliance plans to ask them to commit to the target. In a letter sent to NATO chief Mark Rutte on Thursday and seen by Reuters, Prime Minister Pedro Sanchez requested a "more flexible formula" that either makes the spending target optional or excludes Spain from its application. He said it was not Spain's intention to obstruct the outcome of next week's NATO summit. But any agreement to raise defence spending - a response to a request by US President Donald Trump - would require unanimous approval by the 32 member states. "Committing to a five per cent target would not only be unreasonable, but also counterproductive, as it would move Spain further away from optimal spending and would hinder the EU's ongoing efforts to strengthen its security and defence ecosystem," Sanchez wrote in the letter. "It is the legitimate right of every government to decide whether or not they are willing to make those sacrifices. As a sovereign Ally, we choose not to," he added. At an estimated 1.28 per cent of GDP, Spain had the lowest proportion of expenditure on defence in the alliance last year, according to NATO estimates. Sanchez agreed in April to accelerate efforts to meet NATO's current target of two per cent. Rutte has proposed that member states agree to boost defence spending to 3.5 per cent of GDP and commit a further 1.5 per cent to broader security-related spending. Leaders across NATO say its current spending goal is no longer sufficient, with Russia posing a greater threat since its 2022 invasion of Ukraine. Asked for comment on Spain's request, a North Atlantic Treaty Organization official said: "Discussions among Allies on a new defence investment plan are ongoing." The US, which has been Kyiv's primary military backer since Russia's invasion, spent an estimated 3.38 per cent of GDP on defence in 2024, the third-most among NATO nations, according to the alliance. Trump has said NATO members are not spending their fair share on defence and has threatened not to come to the aid of those falling short. Sanchez, however, said that rushing to a five per cent target would harm European Union efforts to become self-reliant in defence production, pushing governments to procure equipment outside the bloc and that it was "incompatible with our welfare state and our world vision". Some other NATO members have also questioned the timeline, saying it is too rapid, but are generally willing to sign up, diplomatic sources say. Italy, for example, wants the deadline moved to 2035 from 2032 and the removal of a requirement to increase spending by 0.2 per cent per year, a source with knowledge of the matter said. Spain has asked to opt out of NATO's plan to increase members' defence spending to five per cent of their gross domestic product, a move that could derail a summit at which the military alliance plans to ask them to commit to the target. In a letter sent to NATO chief Mark Rutte on Thursday and seen by Reuters, Prime Minister Pedro Sanchez requested a "more flexible formula" that either makes the spending target optional or excludes Spain from its application. He said it was not Spain's intention to obstruct the outcome of next week's NATO summit. But any agreement to raise defence spending - a response to a request by US President Donald Trump - would require unanimous approval by the 32 member states. "Committing to a five per cent target would not only be unreasonable, but also counterproductive, as it would move Spain further away from optimal spending and would hinder the EU's ongoing efforts to strengthen its security and defence ecosystem," Sanchez wrote in the letter. "It is the legitimate right of every government to decide whether or not they are willing to make those sacrifices. As a sovereign Ally, we choose not to," he added. At an estimated 1.28 per cent of GDP, Spain had the lowest proportion of expenditure on defence in the alliance last year, according to NATO estimates. Sanchez agreed in April to accelerate efforts to meet NATO's current target of two per cent. Rutte has proposed that member states agree to boost defence spending to 3.5 per cent of GDP and commit a further 1.5 per cent to broader security-related spending. Leaders across NATO say its current spending goal is no longer sufficient, with Russia posing a greater threat since its 2022 invasion of Ukraine. Asked for comment on Spain's request, a North Atlantic Treaty Organization official said: "Discussions among Allies on a new defence investment plan are ongoing." The US, which has been Kyiv's primary military backer since Russia's invasion, spent an estimated 3.38 per cent of GDP on defence in 2024, the third-most among NATO nations, according to the alliance. Trump has said NATO members are not spending their fair share on defence and has threatened not to come to the aid of those falling short. Sanchez, however, said that rushing to a five per cent target would harm European Union efforts to become self-reliant in defence production, pushing governments to procure equipment outside the bloc and that it was "incompatible with our welfare state and our world vision". Some other NATO members have also questioned the timeline, saying it is too rapid, but are generally willing to sign up, diplomatic sources say. Italy, for example, wants the deadline moved to 2035 from 2032 and the removal of a requirement to increase spending by 0.2 per cent per year, a source with knowledge of the matter said. Spain has asked to opt out of NATO's plan to increase members' defence spending to five per cent of their gross domestic product, a move that could derail a summit at which the military alliance plans to ask them to commit to the target. In a letter sent to NATO chief Mark Rutte on Thursday and seen by Reuters, Prime Minister Pedro Sanchez requested a "more flexible formula" that either makes the spending target optional or excludes Spain from its application. He said it was not Spain's intention to obstruct the outcome of next week's NATO summit. But any agreement to raise defence spending - a response to a request by US President Donald Trump - would require unanimous approval by the 32 member states. "Committing to a five per cent target would not only be unreasonable, but also counterproductive, as it would move Spain further away from optimal spending and would hinder the EU's ongoing efforts to strengthen its security and defence ecosystem," Sanchez wrote in the letter. "It is the legitimate right of every government to decide whether or not they are willing to make those sacrifices. As a sovereign Ally, we choose not to," he added. At an estimated 1.28 per cent of GDP, Spain had the lowest proportion of expenditure on defence in the alliance last year, according to NATO estimates. Sanchez agreed in April to accelerate efforts to meet NATO's current target of two per cent. Rutte has proposed that member states agree to boost defence spending to 3.5 per cent of GDP and commit a further 1.5 per cent to broader security-related spending. Leaders across NATO say its current spending goal is no longer sufficient, with Russia posing a greater threat since its 2022 invasion of Ukraine. Asked for comment on Spain's request, a North Atlantic Treaty Organization official said: "Discussions among Allies on a new defence investment plan are ongoing." The US, which has been Kyiv's primary military backer since Russia's invasion, spent an estimated 3.38 per cent of GDP on defence in 2024, the third-most among NATO nations, according to the alliance. Trump has said NATO members are not spending their fair share on defence and has threatened not to come to the aid of those falling short. Sanchez, however, said that rushing to a five per cent target would harm European Union efforts to become self-reliant in defence production, pushing governments to procure equipment outside the bloc and that it was "incompatible with our welfare state and our world vision". Some other NATO members have also questioned the timeline, saying it is too rapid, but are generally willing to sign up, diplomatic sources say. Italy, for example, wants the deadline moved to 2035 from 2032 and the removal of a requirement to increase spending by 0.2 per cent per year, a source with knowledge of the matter said.
Al Jazeera
3 hours ago
- Business
- Al Jazeera
Spain rejects NATO's 5% defence spending hike as ‘counterproductive'
Spain has reportedly asked to opt out of NATO's proposed defence spending target of 5 percent of GDP, risking disruption to a key agreement expected at next week's alliance summit. In a letter addressed to NATO Secretary-General Mark Rutte on Thursday, Prime Minister Pedro Sanchez urged the alliance to adopt a more flexible framework, according to media reports. The letter, seen by the Reuters and Associated Press news agencies, called for either the target to remain optional or for Spain to be exempt entirely. 'Committing to a 5% target would not only be unreasonable, but also counterproductive,' Sanchez wrote, warning that it would undermine efforts by the European Union to build its own security and defence base. 'As a sovereign Ally, we choose not to.' Sanchez insisted Madrid does not intend to block the outcome of the upcoming summit. But any agreement on increased defence spending must be approved unanimously by all 32 NATO members, giving Spain leverage to delay or water down the deal. Spain currently spends approximately 1.28 percent of its GDP on defence, the lowest among NATO members, according to alliance estimates. While Sanchez has pledged to accelerate the country's path to NATO's current 2 percent goal, he argues that going beyond that risks harming the welfare state and compromising Spain's broader policy vision. NATO's push for higher spending follows calls by US President Donald Trump and others to share the burden more fairly across the alliance. Rutte has suggested a new formula that allocates 3.5 percent of GDP to core military spending and an additional 1.5 percent to broader security needs. The United States, NATO's largest military contributor and Ukraine's main backer since Russia's 2022 invasion, is estimated to have spent 3.38 percent of its GDP on defence in 2024. Trump has repeatedly claimed European allies are not pulling their weight, and has threatened to withhold support for those who fall short. Sanchez, however, said rushing to meet a 5 percent target would force EU states to buy military equipment from outside the bloc, damaging the continent's attempts to bolster self-sufficiency in defence. The proposal also faces resistance from Spain's political left. The left-leaning Sumar party, part of Sanchez's coalition, opposes the move, while Podemos, not in government but often a key parliamentary ally, has also rejected it. 'If the government needs parliamentary support to approve spending, it will have a very difficult time in the current situation,' said Josa Miguel Calvillo, a professor of international relations at the Complutense University of Madrid, speaking to Reuters. Italy has also raised concerns, reportedly seeking to shift the proposed deadline for the new target from 2032 to 2035 and drop the requirement to increase spending by 0.2 percent annually. One senior European official told Reuters that Spain's rejection complicates talks but said discussions are ongoing. 'It doesn't look good, indeed, but we are not over yet. Spain has demonstrated to be a steadfast ally so far.'
Perth Now
4 hours ago
- Business
- Perth Now
Spain may derail NATO summit by resisting defence spend
Spain has asked to opt out of NATO's plan to increase members' defence spending to five per cent of their gross domestic product, a move that could derail a summit at which the military alliance plans to ask them to commit to the target. In a letter sent to NATO chief Mark Rutte on Thursday and seen by Reuters, Prime Minister Pedro Sanchez requested a "more flexible formula" that either makes the spending target optional or excludes Spain from its application. He said it was not Spain's intention to obstruct the outcome of next week's NATO summit. But any agreement to raise defence spending - a response to a request by US President Donald Trump - would require unanimous approval by the 32 member states. "Committing to a five per cent target would not only be unreasonable, but also counterproductive, as it would move Spain further away from optimal spending and would hinder the EU's ongoing efforts to strengthen its security and defence ecosystem," Sanchez wrote in the letter. "It is the legitimate right of every government to decide whether or not they are willing to make those sacrifices. As a sovereign Ally, we choose not to," he added. At an estimated 1.28 per cent of GDP, Spain had the lowest proportion of expenditure on defence in the alliance last year, according to NATO estimates. Sanchez agreed in April to accelerate efforts to meet NATO's current target of two per cent. Rutte has proposed that member states agree to boost defence spending to 3.5 per cent of GDP and commit a further 1.5 per cent to broader security-related spending. Leaders across NATO say its current spending goal is no longer sufficient, with Russia posing a greater threat since its 2022 invasion of Ukraine. Asked for comment on Spain's request, a North Atlantic Treaty Organization official said: "Discussions among Allies on a new defence investment plan are ongoing." The US, which has been Kyiv's primary military backer since Russia's invasion, spent an estimated 3.38 per cent of GDP on defence in 2024, the third-most among NATO nations, according to the alliance. Trump has said NATO members are not spending their fair share on defence and has threatened not to come to the aid of those falling short. Sanchez, however, said that rushing to a five per cent target would harm European Union efforts to become self-reliant in defence production, pushing governments to procure equipment outside the bloc and that it was "incompatible with our welfare state and our world vision". Some other NATO members have also questioned the timeline, saying it is too rapid, but are generally willing to sign up, diplomatic sources say. Italy, for example, wants the deadline moved to 2035 from 2032 and the removal of a requirement to increase spending by 0.2 per cent per year, a source with knowledge of the matter said.
Telegraph
4 hours ago
- Business
- Telegraph
Spain rejects Trump's Nato spending demands ahead of summit
Spain has rejected Donald Trump's 'unreasonable' demand that Nato members increase defence spending, throwing plans for a summit of alliance leaders into disarray. Next week's meeting in the Hague has been carefully designed to convince the US president to continue supporting Europe's defence. However, the refusal by Pedro Sánchez, the prime minister of Spain, to commit to a new defence spending target of 5 per cent of GDP has jeopardised the carefully choreographed diplomacy. Mr Trump has threatened to withdraw US protection from allies which don't commit to the new target, which has been raised from 2 per cent amid fears over Russian aggression. Mark Rutte, the Nato secretary general, has broad support for an increase in military spending to 3.5 per cent of GDP by 2030 and 1.5 per cent of investment in defence-adjacent areas such as transport infrastructure and cyber security. Mr Sánchez asked for Spain to be exempt from any spending target agreed next week or that the goal be made optional, even though Madrid has failed to meet even the original 2 per cent target. The letter from Europe's most influential Left-wing leader is a blow for Mr Rutte and could embolden the few other members reluctant to sign up to the 5 per cent. Germany and Poland are among the countries supporting the goal. Britain has committed to hit 2.5 per cent by 2027 but Sir Keir Starmer does not think the economy is strong enough to go above three per cent at this stage. In his letter, Mr Sánchez said hitting the target would only be possible by raising taxes on the middle class and cutting public services. The socialist premier said a 'rushed' effort to hit 5 per cent would damage economic growth and could force his government to slash net zero and development aid budgets. 'The empirical reality is that, for Spain, as for other Nato countries, reaching 5 per cent defence spending will be impossible unless it comes at the cost of increasing taxes on the middle class, cutting public services and social benefits for their citizens,' he wrote. He added that diverting money from education, technology and healthcare would cost the Spanish economy, as well as increase debt and inflation. In 2024, Spain spent just 1.28 per cent of GDP on defence, which has drawn criticism from the US president. Mr Sánchez claimed Spain was committed to the 2 per cent target but wanted the scope widened to include the fight against climate change and illegal migration. He has announced more than €10 billion of fresh defence investment to hit the 2 per cent target this year. But he faces a balancing act of aligning with Nato allies and cajoling his junior coalition partner, the far-Left alliance Sumar, which is hostile to increasing military spending. Mr Sánchez has taken swipes at Mr Trump and his political allies such as Javier Milei, the president of Argentina. Spain's formal recognition of Palestine and criticism of Israel will have won it no favours with the White House and neither will its liberal transgender rights laws. Mr Trump will be handed a one-page communiqué to sign off at the Nato leaders' summit in a concession to his short attention span and as part of an effort to head off a spending row between Europe and the US. Nato has cut back the 32-leader strong summit to just one working session of two and a half hours dedicated to the spending target. Strategic shortening of summit The meeting was originally meant to last three days, but shortening it will prevent Mr Trump from leaving early, as he did at the G7 meeting in Canada this week. Mr Trump's departure, ostensibly to respond to Israel's strikes on Iran, meant he missed talks with Volodymyr Zelensky, the Ukrainian president. Sources have claimed he left because he was angered Emmanuel Macron, the French president, had visited Greenland on his way to Canada. Mr Trump has said he wants to buy the Arctic Island, but Mr Macron declared that the Danish autonomous territory was 'not for sale'. Mr Zelensky has been invited to a dinner of Nato leaders on Tuesday night hosted by the King and Queen of the Netherlands, but will not take part in the summit. The US has ruled out future Nato membership for Ukraine. Russia and Ukraine said on Thursday that they had completed another exchange of captured soldiers, part of a deal reached earlier in June at peace talks in Istanbul. 'Our people are returning home from Russian captivity,' Mr Zelensky said on social media. Fighting between Iran and Israel could deflect global attention from the Russian invasion of Ukraine and even bolster the Kremlin's war effort, Ukrainian officials say. The conflict has pushed up the price of oil – a key revenue stream funding Russia's invasion. However, Kyiv has welcomed Israeli attacks on Iran, which has directly aided and provided weapons to Moscow for its own strikes on Ukraine.
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First Post
6 hours ago
- Business
- First Post
'Unreasonable, counterproductive': Spain's Sánchez rejects push to increase Nato defence spending to 5%
Spanish PM Sánchez has told Nato Secretary General Mark Rutte that the proposed increase in the alliance's defence spending target to 5% of GDP would be 'not only unreasonable, but also counterproductive', according to a report read more Spanish Prime Minister Pedro Sánchez has told Nato Secretary General Mark Rutte that the proposed increase in the alliance's defence spending target to 5% of GDP would be 'not only unreasonable, but also counterproductive,' according to a report. According to The Guardian report, citing Spanish newspaper El País, in a letter responding to Rutte's proposals for next week's Nato summit in the Hague, Sánchez declared his opposition for the proposed change arguing 'it is not necessary to fulfil our commitments to the alliance.' STORY CONTINUES BELOW THIS AD Sánchez reportedly argued that the proposed 5% GDP defence spending target 'has nothing to do with the level of commitment to collective defence,' asserting that Spain remains confident in its ability to meet Nato obligations with lower spending levels. He warned that adopting such a target would negatively impact the Spanish economy, potentially requiring tax hikes, cuts to public services, and delays in the country's green transition plans. 'We choose not to make those sacrifices,' The Guardian quoted Sánchez to have told Nato Rutte. According to the report, the new Nato defence spending goal had been expected to pass unanimously, but Spain's opposition could now prompt further discussions among member states. A Spanish government source told El País that while Madrid does not intend to 'veto anything' for other countries, it wants to be clear that it 'can't commit to it.' Spain's national broadcaster RTVE also reported on Sánchez's stance. The latest Nato data shows Spain's defence spending at just 1.3% of GDP — the lowest among all alliance members. In April, the Spanish government announced tentative plans to raise that figure to 2%. With inputs from agencies
