Military spending, Italy gives a jolt: Spain also accelerates to 2%

Italy has set the pace, and allies are beginning to follow. After the announcement by Economy Minister Giancarlo Giorgetti on increasing defense spending to 2% of GDP, Spanish Prime Minister Pedro Sánchez, at the end of the Council of Ministers, announced the approval of the Industrial and Technological Plan for Security and Defense. An ambitious project that will finally bring Spain to reach 2% of GDP in military spending by 2025, as requested by NATO for over a decade. A goal postponed for years, now becoming a reality.

And it is no coincidence that the announcement comes right after the Italian one: Italy has given the jolt, and this time Spain did not stand by. With this move, the top five economies of the European Union — Germany, France, Italy, Spain, and the Netherlands — align with the commitments made within NATO: all will reach military spending equal to at least 2% of GDP this year.

10 billion to strengthen defense and fulfill a long-neglected commitment

During a press conference at Moncloa, Sánchez officially presented the new plan, announcing an additional investment of 10.471 billion euros.
With this maneuver, Madrid will move from the current 1.4% of GDP to 2% by the end of 2025, finally fulfilling the commitment made in 2014 within NATO.

The reference is clear: in 2014, at the NATO summit in Newport (Wales), the members of the Atlantic Alliance formally committed to increasing their military spending to 2% of GDP.
A promise never really kept by Rome and Madrid until today, despite the international instability triggered already in 2014 with the Russian annexation of Crimea and the war in Donbass.
For years, Italy and Spain have remained at the bottom of the list among NATO countries in terms of military investments. Until today.

A strategic plan in five pillars

Sánchez promises a structural shift, without increasing taxes, without touching welfare, and without generating new deficit.

The plan is structured into five strategic pillars:

• Improvement of Armed Forces conditions (35.45% of the investment): training, equipment, and dignity for troops and sailors.
• Telecommunications and cybersecurity (31.16%): modernization of encrypted systems, AI, 5G, cloud, and defense against cyber attacks.
• New defense and deterrence systems (18.75%): cutting-edge technologies for protection and deterrence.
• Dual capabilities for emergencies and natural disasters (16.73%): an army also useful in the civilian sphere.
• Safety of personnel in international missions (3.14%): support for over 3,000 military personnel engaged abroad.

The most significant data? 87% of the funds will remain in Spain, generating over 100,000 new jobs, of which 36,000 direct, and an increase in GDP between 0.4 and 0.7 percentage points.
A real boost for the national economy.

Defense and welfare can coexist

Sánchez wanted to clarify: strengthening security does not mean sacrificing the welfare state.
The maneuver will be covered through:

• Remodulation of PNRR funds
• Budget surpluses thanks to economic growth
• Unused residual funds from previous budgets
• Possible support mechanisms from the European Commission

With this plan, Spain establishes itself as a central player in European security, especially for the efficiency in resource use.

Sánchez, in a message also addressed to his coalition, reiterates that «Spain is a pacifist country, but believes in deterrence». In an unstable world, investing in defense also means protecting freedom, technological progress, and employment.

Conclusion: Europe is moving

After years of stalemate, Europe is moving. Italy has started the engine, Spain has responded. Now the signal is strong: defense is no longer just an expense, but an opportunity for development, innovation, and shared security.