In a landmark announcement, Spanish Prime Minister Pedro Sánchez has committed to significantly increasing the nation's military expenditure, aiming to reach 2% of Gross Domestic Product (GDP) by 2029. This decision comes in response to a changing global landscape, particularly in the wake of the recent geopolitical shifts under U.S. leadership and ongoing conflict in Ukraine.

Historically, Spain has maintained a pacifist stance on military engagement, illustrated by former Prime Minister José Luis Rodríguez Zapatero's decision to withdraw troops from Iraq in 2004, as part of a broader anti-war sentiment that brought the Socialist party back to power.

The current government's pivot toward heightened military readiness reflects a stark departure from this legacy, now necessitated by the evolving security dynamics involving NATO and the European Union.

The strategic necessity for a reassessment of military policy is underscored by Spain’s current level of military expenditure, which, as projected for 2024, remains at approximately 1.28% of GDP, the lowest among NATO allies.

However, government sources indicate that final adjustments will likely place this figure higher, particularly as the nation seeks to align with NATO’s defense spending targets.

To facilitate this increase, the Sánchez administration has announced a series of measures, including the expansion of the Ministry of Defence budget to bolster military capabilities.

In 2024, the defense budget was set at €15.46 billion, reflecting an increase of €2.633 billion from previous funding.

Additionally, Spain has been incorporating related expenditures from other governmental departments into its defense calculations, a practice that aims to broaden the definition of military spending while addressing contemporary security challenges.

The funding boost coincides with Spain's commitment to participate actively in international military support efforts, such as the provision of ammunition and arms to Ukraine, where Spanish military assistance has received public support.

Reports indicate positive public sentiment surrounding participation in peacekeeping missions abroad, further legitimizing the government's military expenditure approach despite a traditionally pacifist public view.

Controversy surrounds the planned increase in military spending, particularly from opposition parties.

Alberto Núñez Feijóo, leader of the Popular Party (PP), has criticized Sánchez’s approach, arguing that he should not engage in international forums regarding defense without explicit approval from the Spanish Congress.

While there is a general consensus on the need for increased defense funding, opposition parties have expressed concerns over the lack of comprehensive dialogue regarding necessary budgetary adjustments.

The proposed increase has been framed as part of a broader European effort, coinciding with plans outlined by EU leadership to develop a cohesive defense strategy amid global geopolitical tensions.

Sánchez's call for joint financial mechanisms to support defense spending within the EU underscores a unified response to external threats, emphasizing the need for collaborative financial solutions beyond national budgets.

The Spanish defense sector is poised for expansion, with various arms projects amounting to over €50 billion already identified for development.

This is propelled by Spain’s strategic pivot to enhance its military capacity domestically within the European framework to build trust with allied nations.

Key projects include state-of-the-art armored vehicles and naval vessels, which are part of Spain’s ambitious modernization program.

As Spain’s military industry braces for increased funding, companies like Indra and Navantia are expected to play pivotal roles in the domestic arms production landscape.

The upcoming surge in defense spending is likely to reshape the sector, focusing on enhancing national production capabilities and reducing reliance on extraterritorial acquisition of military supplies.

In light of this strategic transition, the urgency for Spain to recalibrate its defense stance reflects a broader European trend toward militarization in the face of external threats, influencing economic commitments and military partnerships across the continent.