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Spain Approves €10.5 Billion Prefinancing to Launch 31 Defense Programs as U.S. Presses for 5% Target

The financing unlocks orders this year to meet Spain’s 2% pledge despite a U.S. push for 5%.

Overview

  • The Council of Ministers cleared three decrees providing €10.471 billion in credits to activate 31 special modernization programs, completing the prefinancing cycle started in July.
  • The government says execution orders will be signed before year-end to certify that Spain allocates roughly 2% of GDP to defense in 2025.
  • Funding channels resources to major contractors including Indra, Airbus, Navantia, Hisdesat and General Dynamics, with Indra set to receive about €4.2 billion.
  • Projects span flight-training systems, a light multipurpose helicopter, F-100 frigate upgrades, a new replenishment ship, a multipurpose tracked vehicle and continued work on the FCAS/NGWS combat-air program.
  • U.S. Ambassador to NATO Matthew Whitaker reiterated a no-exceptions 5% benchmark for all 32 allies, and President Donald Trump threatened punitive tariffs, while Madrid maintains its 2%–2.1% stance and a broader plan expected to mobilize around €34 billion in coming years.