Overview

• Spain will increase defense spending to 2% of GDP by the end of 2025, allocating an additional €10.4 billion to reach approximately €34 billion in total military expenditures.
• The funding will be sourced from public savings, unused budget funds, and EU pandemic recovery cash, avoiding cuts to social programs or new taxes.
• Investments include raises for military personnel, €3.26 billion for telecommunications and cybersecurity, and €1.9 billion for new defense and deterrence equipment.
• The plan has sparked criticism from left-wing coalition partners, who argue the expenditures are excessive and lack sufficient deliberation.
• Set to be submitted to NATO and the European Commission on Wednesday, the plan is expected to boost Spain’s GDP by 0.4–0.7 percentage points and create up to 100,000 jobs, with 87% of investments benefiting domestic companies.