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Wednesday, Apr 16, 2025

Spanish Government Approves €2.084 Billion Defense Budget Increase

Spanish Government Approves €2.084 Billion Defense Budget Increase

The Council of Ministers initiates a significant credit transfer absent key officials amid ongoing NATO commitments.
On April 7, 2025, the Spanish Council of Ministers approved a substantial increase in the defense budget amounting to €2.084 billion.

This decision comes as part of Spain's efforts to fulfill its NATO commitment to reach a defense spending target of 2% of GDP as soon as possible.

While the Prime Minister was arriving in Beijing at the time of the decision, the absence of Defense Minister Margarita Robles, who did not address the public, has drawn attention.

The approved budget increase is being made through a credit transfer mechanism that was established during the COVID-19 crisis.

This approach allows the government to bypass the need for parliamentary approval and debate over the defense budget.

Reportedly, this package originates from the Ministry of Finance and is aimed at funding activities related to maintenance, modernization, and training within the armed forces.

According to details from recent reports, of the total approved amount, €870 million will be allocated to the Special Modernization Program 122B, which is aimed at the development, manufacturing, and acquisition of complex and long-duration defense systems intended to modernize the Spanish Armed Forces.

Additionally, €803 million will be directed to Program 122A for further modernization efforts, while €411 million will address logistical and health-related expenses for the armed forces.

Since former U.S. President Donald Trump took office on January 20, the credit transfer approved on this occasion is the largest provided by the Ministry of Finance to bolster defense spending.

Excluding funds dedicated to reconstruction efforts, over €3.489 billion in resources aimed at increasing defense investment have been approved by the Council of Ministers since January.

This includes €567 million from the contingency fund for financing peace missions deployed abroad by Spanish Armed Forces.

This decision emerged during a Council of Ministers meeting that took place without the Prime Minister, Pedro Sánchez, who was in China.

The absence of Defense Minister Margarita Robles also raised eyebrows as she traditionally oversees defense strategy.

Although the Minister’s circle acknowledged her detachment from public explanations, they indicated that she maintained a sense of calm regarding her official role.

Subsequently, Robles attended a separate public event held to unveil the latest modernized CH47F Chinook helicopter at the Army's Aviation Base, where she was expected to answer inquiries from the media at that event, rather than during the Council meeting.

The government’s action represents a strategic move to enhance defense investment without necessitating approval from the Congress of Deputies.

The ruling Socialist Party aims to advance these budgetary measures without extensive debate, especially considering the opposition from coalition partners, such as the party Sumar.

Notably, Sumar has formally expressed their objection to the budget increase, marking the first written statement of dissent on this matter.

This development coincides with the European Union's and NATO's ongoing pressure for continued rearmament following the recent publication of the White Book on Defense, which outlines pathways to achieving strategic autonomy in Europe through coordinated increases in defense spending among member states.

As the Spanish government prepares for the upcoming summit in The Hague, where investment minimums may be renegotiated towards an increase to 3%, demonstrating Spain’s reliability as an ally in the alliance remains a priority.

The current transfer is expected to be followed by additional credit transfers in future Council meetings to reach an overall increase of €3.5 billion in defense spending this year.
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