Spain's leader sticks by decision to break with Nato on defence spending

Leader Live

5 hours ago

On Thursday, the progressive Spanish leader stuck by his decision to break with Nato allies and responded to Mr Trump's comments by pointing out that the European Commission — and not Spain — was who decided the bloc's trade policy.
'What is clear is that trade policy is a policy directed from here, from Brussels,' Mr Sanchez said. 'Spain is an open country. It is a country that is friendly to its friends, and we consider the United States a friend of Spain.'
At the military alliance's summit on Wednesday, members agreed to raise their defence spending to 5% of GDP. But Mr Sanchez secured a last-minute exemption, saying that Spain will only spend up to 2.1%, which he called 'sufficient and realistic'.
Mr Trump criticised the country after the summit, saying Spain wanted 'a little bit of a free ride,' and that it would 'have to pay it back to us on trade' through higher tariffs.
How Mr Sanchez's gamble could play out was up for debate on Thursday.
'It is not always easy to interpret exactly what Mr Trump means,' Belgian Prime Minister Bart De Wever told reporters at an EU summit.
'How he wants to impose import tariffs on Spain separately is a mystery to everyone. Could this perhaps concern specific products from Spain? We will have to wait and see.'
Spain's move on the international stage comes at a complex moment for Mr Sanchez at home as corruption cases involving his inner circle have ensnared his Socialist party and resulted in louder calls — even from some left-wing allies — to announce early elections. So far, Mr Sanchez has refused.
'To Trump's theatre, Mr Sanchez responds with something similar,' said Montserrat Nebrera, political analyst and professor of constitutional law at the International University of Catalonia. 'Domestic problems are piling up, and this resistance to meeting the arbitrary 5% target also seeks to wink at his partners most critical of defence spending.'
Spain was Nato's lowest spender last year, according to the alliance's estimates, spending around 1.28% of its GDP on defence expenditure.
In April, Mr Sanchez announced that the country would reach 2% this year, for which he was criticised by some left-wing allies.
On Thursday, Antonio Garamendi, president of the Spanish Confederation of Business Organisations, criticised Mr Sanchez for the spending opt-out.
'We have to stick with our allies and not going along with the other Europeans is an error, and even more so if that increases the chance we will be punished,' Mr Garamendi said.
While Spain is under the umbrella of the European Union, which negotiates trade deals on behalf of all 27 member countries, it could still be targeted by tariffs that hit its most vulnerable industries, Mr Garamendi said.
He specifically pointed to Spanish steel, cars and olive oil sectors.
'There are industries that can be impacted, and that has to concern us,' he added.