Spain Avoids NATO's 5% Defense Spend Target, Sticking to 2%

Paul

- Exemption secured from NATO's 5% defense spending target.
- Prime Minister Sánchez: target "unnecessary and disproportionate."
On June 22, 2025, Cryptopolitan reported that Spain secured an exemption from NATO’s 5% defense spending target. Cryptopolitan further reported that Prime Minister Pedro Sánchez announced the decision in a televised address on the same day; during this address on June 22, Prime Minister Pedro Sánchez stated, the target was "unnecessary and disproportionate." Additionally, Cryptopolitan noted that in a letter dated June 19, 2025, Sánchez informed NATO Secretary-General Mark Rutte of Spain's decision, emphasizing that Spain would not commit to the proposed spending level.
On June 22, AP News reported a similar development, confirming Spain reached a deal with NATO to be excluded from the 5% GDP defense spending target. According to AP News, Sánchez stated that Spain could fulfill its NATO obligations by spending 2.1% of GDP on defense. AP News also reported that Sánchez and Rutte formally acknowledged the agreement through an exchange of letters on Sunday, June 22.
Also on June 22, Reuters reported that Spain agreed with NATO to be excluded from the 5% defense spending requirement. According to Reuters, a change in NATO's statement language from "we commit" to "allies commit" helped accommodate Spain's position. Reuters noted that NATO’s 32 member countries agreed on a statement supporting a 5% defense spending goal by 2035, an agreement which overcame Spain's objections.
On June 22, Politico.eu reported that NATO allies reached a consensus which allowed Spain to spend less on defense, noting that this wording change to accommodate Spain marked a significant adjustment. Politico.eu also reported that this development occurred after U.S. President Donald Trump insisted that all NATO members contribute equally to defense spending. According to Politico.eu, on June 20, 2025, U.S. President Donald Trump made remarks stating, Spain "has to pay what everybody else has to pay"; however, NATO granted the exemption.
On June 19, Al Jazeera reported that Prime Minister Sánchez initially requested the opt-out in a letter to NATO Secretary-General Rutte. Regarding this letter, on June 19, Prime Minister Pedro Sánchez stated, the 5% target was "unreasonable, but also counterproductive." Meanwhile, on June 22, TVP World reiterated that NATO and Spain struck a deal which excluded Spain from the new goal. TVP World also confirmed the overall agreement among NATO members for the 5% target by 2035.
Despite Spain’s exemption, NATO’s 32 member states reached a general agreement on the 5% target, highlighting the organization's flexibility in accommodating the diverse economic capabilities of its members.
On June 23, 2025, CoinMarketCap reported that Bitcoin (BTC) was trading at $34,200 as of 18:00 UTC, and its 24-hour trading volume had increased by 1.5%.
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