The upcoming NATO summit is facing uncertainty after Spain declared it cannot meet the financial demands set by U.S. President Donald Trump. The summit is scheduled for next Tuesday in the Netherlands, where Trump is urging NATO allies to commit to spending at least five percent of their gross domestic product (GDP) on defense. This significant increase would require unprecedented investment from all 32 member countries.
In a letter to Dutch Prime Minister Mark Rutte, Spanish Prime Minister Pedro Sánchez expressed that committing to such a high target would be unreasonable and counterproductive. He argued that it would divert Spain from optimal defense spending and undermine the European Union’s efforts to enhance its security.
Spain is not alone in its concerns. Other nations, including Belgium, Canada, France, and Italy, are also struggling to meet the proposed spending increases. However, Spain is the first to publicly announce its inability to comply, making it difficult for Sánchez to backtrack on his position.
Sánchez’s government faces additional pressures, including reliance on smaller parties to maintain power and ongoing corruption scandals affecting his administration. This has led to calls for early elections, further complicating the situation.
As discussions continue, Rutte’s office stated that talks among allies regarding the new defense investment plan are ongoing. NATO’s civilian leadership was expected to present a new proposal to help resolve the deadlock, but updates from U.S. and French officials have been postponed.
Following Russia’s invasion of Ukraine, NATO allies agreed that two percent of GDP should be the minimum for military budgets. However, new defense strategies require at least three percent, which Spain had already agreed to earlier this year. The proposed five percent goal comprises 3.5 percent for direct defense spending and an additional 1.5 percent for infrastructure improvements, such as roads and bridges, to facilitate military operations.
Countries bordering Russia and Ukraine have already accepted the spending targets, along with Germany, Norway, Sweden, and the Netherlands, which is hosting the summit. The Netherlands estimates that it will need to allocate at least 3.5 percent of its GDP to defense, requiring an additional €16 billion to €19 billion ($18 billion to $22 billion).
The proposed spending increase is not just about numbers; it reflects the growing concern over security threats from Russia, cyberattacks, and other forms of aggression. The U.S. insists that the pledge should not be open-ended and prefers a shorter timeline than the ten years Italy has suggested for reaching the five percent target.
The urgency of these discussions is underscored by the looming summit. European leaders are under pressure to present a unified front and avoid the discord that marked previous NATO meetings, particularly during Trump’s first term. The stakes are high, and the outcome of these negotiations will shape the future of NATO’s defense strategy and its ability to respond to emerging threats.