BRUSSELS, Belgium: NATO on Sunday signed off on a pledge to ramp up defense spending before its upcoming summit, but Madrid insisted it would not need to hit the five percent of GDP demanded by US President Donald Trump.

The claim by Spanish Prime Minister Pedro Sanchez sets up a potential clash with Trump, who has pressured allies to commit to that headline figure when they meet for the two-day gathering starting on Tuesday in The Hague.

Spain had been the last holdout on a compromise deal that sees allies promise to reach 3.5 percent on core military needs over the next decade, and spend 1.5 percent on a looser category of “defense-related” expenditures such as infrastructure and cybersecurity.

Multiple diplomats at NATO said the agreement — set to be unveiled at the summit — had gone through with the approval of all 32 nations and that there was no exemption for Madrid.

But within minutes Sanchez came out saying he had struck an accord with NATO that would see his country keep respecting its commitments “without having to raise our defense spending to five percent of gross domestic product.”