Latest news with #defencespending
BBC News
6 hours ago
- Politics
- BBC News
Public don't back aid spending any more, says minister
The public no longer back spending on international aid, Trade Minister Douglas Alexander has suggested. The former international development secretary under Gordon Brown told BBC Radio 4's Political Thinking with Nick Robinson that even if money was not tight "the argument would have to be made" for investment in foreign this year, Prime Minister Sir Keir Starmer announced a cut in the international aid budget to fund an increase in defence move was strongly criticised by charities, who argued it would be devastating for vulnerable people worldwide as well as undermining the UK's national interests. Alexander said he had long believed it was "morally right" and "strategically smart" to invest in international aid but added: "I think we have lost the argument at various points". "We have an interest in building a stable, more equal, more safe world for our future generations," he said."But public consent has been withdrawn. And truthfully on aid, it's not just fiscally challenged, it's culturally challenged as well. "Even if the money weren't tight, the argument would have to be made."He added that there had been reversals in a number of countries which had previously been leaders in international development funding, ranging from the United States to France, Germany and Norway. During the interview, Alexander recalled attending the Make Poverty History march in Edinburgh, which took place 20 years march saw thousands of protesters call for the cancellation of debts owed by poorer countries and more aid for Africa. The campaign ahead of the G8 summit of the world's developed nations in Gleneagles also included a series of Live 8 concerts around the world. "I carried my son on my shoulders, I pushed my daughter in the pram, there were a quarter of a million people arguing that we should make poverty history internationally," he added that the campaign showed "politics and the choices we make matter". Alexander served as international development secretary between 2007 and 2010, after previously holding a number of ministerial roles under Sir Tony Blair and Brown committed to increasing the overseas aid budget to 0.7% of national income, despite growing financial target was reached in 2013 under David Cameron's Conservative-Liberal Democrat coalition government, before being enshrined in law in aid spending was cut to 0.5% of national income in 2021 under the Conservatives, who argued the move was needed to keep public debt down during the Covid this year, Sir Keir said that figure would fall further to 0.3% in 2027 to fund an increase in defence spending.A survey by YouGov in February suggested 65% supported this Romilly Greenhill, chief executive of Bond, the UK network for NGOs, said public support for maintaining UK aid remained similar to levels during the 2010s, pointing to research by the Development Engagement Lab project. "The UK public knows that UK aid is not only the right thing to do, but it is essential for our national security," she said."It helps prevent future pandemics, tackles the root causes of poverty, conflict and climate change, and contributes to making both the UK and the world a safer, healthier and more prosperous place for us all."She urged Alexander to "show leadership and play a key role in remaking the case to the British public". Alexander returned to Parliament last July as the MP for Lothian East and was made trade secretary, after previously losing his seat in a shock defeat in is understood the government's new trade strategy will be published next Thursday. Alexander said the strategy would recognise "that we're an 81% services-based economy" and the second largest exporter worldwide of services, which covers things like the financial and IT added that it would set out "how we take down barriers [to trade]... to the benefit of every region of the UK". Alexander also said the UK needed to work on its "biggest trading relationship" with the European Union, after striking a deal last month covering areas including fishing, food exports, defence and said the agreement was "the start of a process" and the government wanted to see further progress in areas such as mutual recognition of professional qualifications. You can listen to the full interview on BBC Radio 4 on Saturday at 17:30 BST or on BBC Sounds. Sign up for our Politics Essential newsletter to read top political analysis, gain insight from across the UK and stay up to speed with the big moments. It'll be delivered straight to your inbox every weekday.
Al Jazeera
15 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.'
Telegraph
16 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.
Reuters
17 hours ago
- Business
- Reuters
Italy, pressed to boost defence spending, lashes at 'stupid' EU rules
ROME, June 19 (Reuters) - European Union budget rules are "stupid and senseless" and need to be changed to allow member states to boost defence spending as recommended by Brussels, Italian Economy Minister Giancarlo Giorgetti said on Thursday. The EU Commission has introduced flexibility clauses to allow more investment in security, but Giorgetti said their current form penalises countries such as Italy, which are under a so-called EU infringement procedure for their excessive deficits. "It is essential to find ways to bring these rules up to date with the crisis we are experiencing so that they do not seem stupid and senseless," the minister said in a statement issued by his staff on the sidelines of a meeting with euro zone peers in Luxembourg. The title of the statement was blunter, saying Giorgetti called for changes to "stupid and senseless rules". Brussels has proposed allowing member states to raise defence spending by 1.5% of gross domestic product each year for four years without any disciplinary steps that would normally kick in once a deficit is more than 3% of GDP. The plan came amid growing pressure in Europe to boost military spending to deter a potential attack from Russia and become less dependent on the United States. Highly-indebted Italy is set this year to meet the NATO defence target of 2% of GDP through a series of accounting changes, but an alliance summit next week is expected to raise the goal to 5% of GDP. Giorgetti said that, under the Commission's scheme, member states not subject to the EU's excessive deficit procedure would be allowed to use the extra leeway on defence without breaching budget rules, even if their deficits rise above the 3% of GDP ceiling. However, "member states already in the infringement procedure cannot use the same flexibility," he added. In this situation Italy is reluctant to use the EU flexibility clause because it would prevent it from lowering its deficit to 2.8% of GDP in 2026 from 3.4% last year, as planned. "Italy is committed to a timely exit from the infringement procedure and accepting the invitation to increase defence spending would forever prevent this," Giorgetti said. Rome is also wary of any move that could harm its improving reputation on financial markets, two government officials said. Last month, credit ratings agency Moody's upgraded Italy's outlook to "positive" after rival S&P Global raised the country's rating to "BBB+" from "BBB." Italy's preferred option would be the issuance of common EU debt to finance higher defence spending, one of the officials said, but such a plan would require support from the other bloc members.
The Guardian
18 hours ago
- Business
- The Guardian
Spain rejects Nato plan for member states to spend 5% of GDP on defence
Spain's prime minister, Pedro Sánchez, has rejected Nato's proposal for member states to increase their defence spending to 5% of their GDP, saying the idea would 'not only be unreasonable but also counterproductive'. Sánchez said that he was not seeking to complicate next week's Nato summit in The Hague, but he wanted there to be a 'more flexible formula' that would either make the target optional or allow Spain to opt out. The proposal – advanced by the Nato secretary general, Mark Rutte, in response to Donald Trump's demands for a 5% target – suggests member states agree to raise defence spending to 3.5% of their GDP and commit a further 1.5% to wider security spending. In a letter to Rutte that emerged on Thursday, Sánchez questioned the possible consequences of such a rise, saying it would be incompatible with Spain's welfare state and its vision of the world. 'Committing to a 5% target would not only be unreasonable but also counterproductive because it would move Spain further away from optimal spending and would hinder the EU's ongoing efforts to strengthen its security and defence ecosystem,' he said. '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.' Spain currently lags well behind other western nations by dedicating only about 1.3% of its GDP to defence spending, well short of the current Nato target of 2%. It has suggested a target of 2.1%. Two months ago, Sánchez announced a €10.5bn (£9bn) 'industrial and technological plan for security and defence' to help Spain hit the 2% target by the end of the year, saying it had become obvious 'only Europe will know how to protect Europe' from now on. Asked for comment about Spain's request, a Nato official told Reuters: 'Discussions among allies on a new defence investment plan are ongoing.' Trump increased pressure on the alliance in January, saying the US had shouldered the global defence burden for too long and that he would ask all members to increase defence spending to 5% of GDP. Sign up to This is Europe The most pressing stories and debates for Europeans – from identity to economics to the environment after newsletter promotion Rutte has urged member states to use the threats from Washington as an incentive to take unilateral action on raising defence contributions. He said last month that the pressure was already paying off in countries such as Spain, Portugal, Belgium and Italy. 'I tell them that, well, now I am calling you to ask you to deliver the 2% by the summer, so that collectively we can move considerably north of the 2% because we have to spend much, much more,' he said in March.
