Sánchez announces another 10.471 billion to meet the 2% defense goal this year.

MadridSpain increases defense spending by 2% of GDP with the plan Pedro Sánchez presented at the Moncloa Palace on Tuesday. The Council of Ministers approved the industrial and technological project that the Spanish president announced in a meeting. appearance in Congress less than a month ago and which has now been finalized. This will amount to an additional 10.471 billion, bringing the total to more than 33 billion. "With the plan we are presenting, Spain will meet its 2% GDP target for security and defense by 2025," promised Sánchez, who announced that he will appear again in the Lower House to present the plan to the deputies, but not to put it to a vote, as it does not involve a deviation from the approved budget. This Wednesday, the plan will be sent to Brussels and NATO for their approval.

In his appearance, Sánchez announced the 2024 defense budget execution figure, a figure previously unknown because it depended on the approval of the Atlantic Alliance. It will have been 1.4%, that is, 0.12 percentage points more than in 2023 (1.28%). "We will jump from 1.4% to 2%," the Spanish president emphasized, a commitment that was supposed to be reached in 2029, but which the new context has forced to be brought forward. In fact, a new NATO summit is scheduled for the end of June in The Hague, and it is possible that a new threshold above 2% will be agreed upon. In any case, sources from the Moncloa assume that a timeframe of a few years would be given to reach this goal and are confident that a new calculation will be accepted in NATO metrics regarding what is considered defense spending in order to include resources to combat climate emergencies or to address migration patterns.

What will the money be used for? The plan has five pillars that must meet NATO criteria for the spending to be considered defense spending. First, the largest amount will be dedicated to improving the pay conditions of members of the Armed Forces, as well as training systems. This section accounts for 35% of the investments. Secondly, 31% of the expenditure will be allocated to acquiring new telecommunications and cybersecurity capabilities. Thus, 3.26 billion euros would be allocated to improving telecommunications systems; acquiring new antennas, radars, and satellites; and improving cybersecurity instruments for civilian and military use. "This is about creating a digital shield for Spain," the president said.

Regarding strictly military spending, weapons will represent 19% of the plan, at 1.963 billion euros. These funds will be used to purchase new defense and deterrence equipment. "These are not to attack anyone; Spain is pacifist, but to deter those who might think of attacking us," Sánchez clarified, admitting that Sumar (Spanish Ministry of Defense) has raised objections to this aspect during the Council of Ministers meeting. "The discrepancy is 18.75%," noted sources from the Moncloa (Ministry of Defense). Fourthly, 17% of the total investment, approximately 1.75 billion euros, will be used to expand the fleet of rescue helicopters, logistics support, new bridge-laying vehicles, tanker aircraft, and a new hydrographic vessel. Basically, to modernize the Ministry of Defense's infrastructure for civil emergency situations. Finally, the remaining expenditure will be used to improve the conditions of the 3,000 soldiers and civil guards participating in missions abroad.

How will this be financed?

The plan Sánchez has announced will be financed with own funds, pending the European Commission's authorization of new mechanisms to continue increasing military spending. On the one hand, items from the European Next Generation funds earmarked for cybersecurity will be redirected. Furthermore, the Spanish president has asserted that savings have accumulated by exceeding growth forecasts. Spain had planned to close 2024 with a public deficit of 3% of GDP, and it actually did so at 2.8%. This two-tenths improvement compared to the commitment to the European Commission represents a margin in terms of spending for 2025 of approximately €3.2 billion (it should be noted that one-tenth of GDP is approximately €1.59 billion).

Finally, items from the 2023 budget—now extended—that are no longer needed because they have already been spent and can be redirected to other issues will be used. This last route was already used a few weeks ago."With these mechanisms and surpluses, everything can be financed without tax increases, or further public deficits or debt," Sánchez assured. In fact, the lifting of fiscal rules for defense spending is still pending approval.

Sumar considers the plan "exorbitant."

The coalition's minority partner, Sumar, described the plan as "truly exorbitant" and protested the fact that no work has been done "to analyze the priority challenges and threats, nor to objectively identify the specific existing needs." In this sense, the ministers led by Yolanda Díaz view the allocations for weapons as "particularly worrying," because it is unclear whether "they meet the needs identified as capabilities to be strengthened or as a guarantee of strategic autonomy." Sources from the Moncloa clarified that the majority of these are equipment whose useful life is reaching its end, so they are simply being "modernized" but not expanded.

From Esquerra, its spokesperson in Congress, Gabriel Rufián, has lamented Sánchez's two decisions in the last 24 hours: "He is capable of establishing three days of mourning in a non-denominational state for the death of a pacifist pope and during these three days announcing 10. pure," he tweeted to X. For her part, the secretary general of the purple party, Ione Belarra, criticized the "largest increase in military spending in the history of our country" and denounced that the Spanish government "is today constituted as a government of war." The leader of the PP, Alberto Nuñez Feijóo, has also rejected the Spanish government's plan and renamed it "one of self-defense." "Without agreement with the Council of Ministers. Without budgets. Without authorization from Congress. Without detailing where it will get billions of euros from," she stated.

From Catalonia, Salvador Illa's government welcomed the investments promised by the Spanish president and expressed its desire to "support" the state in defense policies to address the turbulent international context. "We stand side by side with Europe," stated Minister and spokesperson Silvia Paneque at a press conference following the executive council meeting. The government does not anticipate the plan will have any impact on the Catalan government's accounts. For now, it asserts that it lacks data on what impact the promised €10.471 billion might have on the Catalan defense and security business ecosystem.