Spain's Defense Spending to Increase Amid Economic Growth
Economic Minister Carlos Cuerpo announces military investment boost without impacting social spending.
The Spanish government intends to expedite national defense spending, aligning with recent economic growth without reducing social welfare allocations.
Economic Minister Carlos Cuerpo made this announcement in Brussels on March 31, 2025, following the commitment made by Prime Minister Pedro Sánchez in Congress the previous week.
Cuerpo emphasized that the increase in military investment will be financed by rising revenues from the economic expansion, clarifying that this would not compromise social spending or the country's social safety net.
"Defense spending will not compete with social expenditures, and this is a message that must be clear to the citizens," said Cuerpo after a meeting with European Commissioner for Trade, Maros Šefčovič.
The minister highlighted that maintaining economic growth is crucial for expanding public finances, enabling the government to meet various commitments, including reaching a defense expenditure target of 2% of GDP. He stated, "Our economic growth allows us to expand the income pie and thus be able to reach more areas, increase expenses, and promote investments to fulfill our commitments."
In addition to outlining plans for defense spending, Cuerpo discussed the looming tariff increases expected from the United States and indicated that the European Union is preparing a "firm, agile, and proportional" response.
However, he urged caution in interpreting the actions to be taken by the United States, as the Trump Administration had set April 2 as a date for potential policy changes, although specific measures remain uncertain.
Cuerpo also addressed the recent decision by the U.S. to revoke Repsol’s authorization to export oil from Venezuela.
He expressed confidence in the possibility of resolving the situation to allow the Spanish company to continue its operations in the South American country.
"We have been in contact with the company for weeks, aiming to support them in their ongoing dialogue with the U.S. administration.
Therefore, we are proceeding with caution, expecting this dialogue to lead to a favorable conclusion," he remarked.
Economic Minister Carlos Cuerpo made this announcement in Brussels on March 31, 2025, following the commitment made by Prime Minister Pedro Sánchez in Congress the previous week.
Cuerpo emphasized that the increase in military investment will be financed by rising revenues from the economic expansion, clarifying that this would not compromise social spending or the country's social safety net.
"Defense spending will not compete with social expenditures, and this is a message that must be clear to the citizens," said Cuerpo after a meeting with European Commissioner for Trade, Maros Šefčovič.
The minister highlighted that maintaining economic growth is crucial for expanding public finances, enabling the government to meet various commitments, including reaching a defense expenditure target of 2% of GDP. He stated, "Our economic growth allows us to expand the income pie and thus be able to reach more areas, increase expenses, and promote investments to fulfill our commitments."
In addition to outlining plans for defense spending, Cuerpo discussed the looming tariff increases expected from the United States and indicated that the European Union is preparing a "firm, agile, and proportional" response.
However, he urged caution in interpreting the actions to be taken by the United States, as the Trump Administration had set April 2 as a date for potential policy changes, although specific measures remain uncertain.
Cuerpo also addressed the recent decision by the U.S. to revoke Repsol’s authorization to export oil from Venezuela.
He expressed confidence in the possibility of resolving the situation to allow the Spanish company to continue its operations in the South American country.
"We have been in contact with the company for weeks, aiming to support them in their ongoing dialogue with the U.S. administration.
Therefore, we are proceeding with caution, expecting this dialogue to lead to a favorable conclusion," he remarked.
Translation:
Translated by AI
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