Military spending, Italy shakes up: Spain also accelerates to 2%

Italy gave the go-ahead, and the allies began to follow. After the announcement of Economy Minister Giancarlo Giorgetti on increasing defence spending to 2% of GDP, Spanish Prime Minister Pedro Sánchez, at the end of the Council of Ministers, announced the approval of the Industrial and Technological Plan for Security and Defence. An ambitious project that will lead Spain to finally reach the 2% of GDP in military expenditure by 2025as requested by NATO for over a decade now. A goal postponed for years, now a reality.

E non è un caso che l’annuncio arrivi subito dopo quello italiano: l’Italia ha dato la scossa, e stavolta la Spagna non è rimasta a guardare. Con questa mossa, le top five economies in the European Union - Germany, France, Italy, Spain and the Netherlands - align themselves with their NATO commitments: all will achieve military spending of at least 2% of GDP already this year.

10 billion to strengthen defence and fill a long unfulfilled commitment

During a press conference at the Moncloa, Sánchez officially presented the new plan, announcing an investment additional EUR 10.471 billion.
With this manoeuvre, Madrid will go from the current 1.4% of GDP to 2% by the end of 2025finally fulfilling the 2014 NATO commitment.

The reference is clear: in the 2014at the NATO summit in Newport (Wales), the members of the Atlantic Alliance committed themselves formally to increase its military expenditure to 2% of GDP.
A promise never really kept by Rome and Madrid until now, despite international instability triggered as early as 2014 with the Russian annexation of Crimea and the war in the Donbass.
For years, Italy and Spain have remained at the bottom of the league table among NATO countries when it comes to military investment. Until today.

A strategic plan in five pillars

Sánchez promises a structural change, without raising taxes, without touching welfare and without generating new deficits.

The plan consists of five strategic pillars:

• Improving the condition of the Armed Forces (35.45% of the investment): training, equipment and dignity for troops and sailors.
• Telecommunications and cybersecurity (31.16%): modernisation of encrypted systems, AI, 5G, cloud and defence against cyber attacks.
• New defence and deterrence systems (18.75%): state-of-the-art technology for protection and deterrence.
• Dual capabilities for emergencies and disasters (16.73%): an army that is also useful in the civil sector.
• Security of personnel on international missions (3.14%): support for more than 3,000 military personnel deployed abroad.

The most relevant data? The funds' 87% will remain in Spaingenerating over 100,000 new jobsof which 36,000 directand an increase of GDP between 0.4 and 0.7 percentage points.
A real driving force for the national economy.

Defence and welfare can coexist

Sánchez wanted to clarify: strengthening security does not mean sacrificing the welfare state.
The manoeuvre will be covered through:

• Remodulation of PNRR funds
• Budget surpluses thanks to economic growth
• Unused residual funds from previous budgets
• Possible support mechanisms from the European Commission

With this plan, Spain asserts itself as a central player in European security, especially for the efficient use of resources.

Sánchez, in a message also addressed to his coalition, reiterates that "Spain is a pacifist country, but believes in deterrence".. In an unstable world, investing in defence also means protecting freedom, technological progress and employment.

Conclusion: Europe is on the move

After years of stalemate, Europe is on the move. Italy started the engine, Spain responded. Now the signal is strong: defence is no longer just an expense, but an opportunity for development, innovation and shared security.

Source: https://www.lamoncloa.gob.es/presidente/actividades/paginas/2025/220425-sanchez-plan-seguridad-defensa.aspx