Experts argue Spain has hiked defence spending without a clear long-term policy
MADRID – The Spanish government’s multibillion-euro investments in its historically neglected defence sector are now exposing the industry’s own limitations.
Pedro Sánchez, Spain’s prime minister, announced last year a €10 billion industrial plan to boost the country’s national defence sector and achieve the NATO-mandated 2% GDP spending target.
The Iberian country is traditionally one of NATO’s lowest spenders, with defence outlays at just 1.43% of GDP in 2024. According to the alliance’s data, Madrid reached the threshold by the end of 2025, boosting military expenditure to roughly €33.9 billion in 2025 – almost double that of the previous year.
Yet experts warn that rapidly injecting massive investment into a traditionally marginalised and underfunded sector risks “jeopardising” national reindustrialisation, with the industry struggling to effectively absorb and deploy such vast amounts of capital.
