Overview

• The Spanish Cabinet approved a €10.471 billion defense investment plan to achieve NATO's 2% GDP spending target by the end of 2025, four years ahead of the original 2029 goal.
• This decision follows heightened pressure from NATO, the EU, and the US for Spain to increase its defense contributions amid evolving geopolitical challenges.
• The spending will be financed through reallocations of Next Generation EU funds, savings from prior budgets, and 2023 budget lines, with assurances that social programs remain unaffected.
• Sumar, the coalition's minority partner, formally objected to the plan, calling the military expenditure 'exorbitant,' while Podemos warned it would oppose any government approving such a budget.
• Despite internal dissent, Socialist ministers downplayed the risk of a coalition breakdown, emphasizing dialogue and shared commitment to other policy priorities.