After years of underinvestment, Spain surpassed the 2% of GDP allocated to defense in 2026, marking a structural budgetary and technological shift within NATO.
Its defense industry – Airbus, Navantia, Indra – now represents 12% of the industrial GDP and 215,000 jobs, positioning Madrid at the heart of major European programs like FCAS.
Engaged in about fifteen countries, facing tensions around Ceuta and Melilla and hybrid threats, Spain is redefining the contours of its sovereignty at the crossroads of the Atlantic and the Mediterranean.
From the “long peace” to the rearmament era
Long relegated to a secondary role on the Western military stage, Spain has embarked on a profound transformation of its defense apparatus since the beginning of the 2020s, a shift that now appears structural. This phenomenon occurs in an international context marked by the end of the famous “peace dividends” and the return of conflict, especially since the start of the war in Ukraine. Madrid seeks to reconcile two imperatives: strengthening its Atlantic anchorage within NATO and contributing to European strategic autonomy.
This repositioning is based first on a clear budgetary break from the previous decade. After reaching a low point of 0.81% of gross domestic product (GDP) in 2016, Spanish military spending crossed the symbolic 2% threshold in 2026, reaching even 2.1% of GDP according to NATO criteria. This figure represents nearly $33.9 billion (about €31.3 billion), with over $16.1 billion for the Ministry of Defense alone.
Beyond the volume, the structure of expenses is changing, with 44.17% now allocated to equipment compared to 37.87% for personnel, a sign of a shift towards a technological army.
The budget challenge: between strategic ambition and social constraints
This upward trajectory could only be a step. In 2025, the NATO summit in The Hague set a much more ambitious objective in the field, aiming to increase security spending to 5% of GDP by 2035, with 3.5% for defense proper. In the eyes of Spain, this horizon constitutes a major political challenge. The left-wing government of Pedro Sánchez has expressed reservations about this goal, calling it an “absolute mistake” due to the risks it would pose to the social model of many countries, including Spain, and its lack of credibility.
However, Madrid is trying to negotiate margins of interpretation by including investments related to climate resilience or energy security in this expanded effort. The national debate remains vivid: how to finance massive military efforts without weakening public policies that support the Spanish welfare state?
An army in reorganization
The Spanish military transformation is not limited to finances but also involves its human capital. In 2026, the Spanish armed forces consist of 122,395 active-duty military supported by 25,374 reserves. The goal is to reach 127,500 military personnel by 2029, requiring sustained recruitment efforts.
2026 marks a turning point with the opening of over 11,913 positions by the Ministry of Defense.
However, the challenge is as much qualitative as it is quantitative given that the needs are shifting towards highly qualified profiles such as cybersecurity experts, artificial intelligence engineers, or specialists in complex system maintenance. Meanwhile, the reserve is being revalued as a tool for national resilience, capable of quickly mobilizing civilian skills in case of a major crisis.
A defense industry at the heart of sovereignty
This power build-up is also based on a strategically important industrial fabric. The defense sector now represents about 12% of Spain’s industrial GDP and generates more than 215,000 direct and indirect jobs. It revolves around major players, notably Airbus Defence and Space, which largely dominates the landscape with over half of the national production, particularly through its sites in Seville (Andalusia) and Getafe (Madrid region).
In the naval domain, the national champion Navantia embodies technological excellence with the development of the S-80 Plus submarine. On the other hand, the company Indra plays a central role in electronic systems and the future air program while Santa Bárbara Sistemas handles land production.
However, it must be noted that, despite everything, the Spanish sector remains fragmented, especially concerning SMEs, limiting its overall competitiveness against major European players.
Innovation and European cooperation: keys to the future?
To compensate for its relatively limited military weight in Europe, Spain is focusing on innovation. Investments are concentrated on disruptive technologies such as AI, autonomous systems, quantum technologies, and digital twins applied to military maintenance. This strategy is part of a European framework, with Madrid being heavily involved in the European Defence Fund and several permanent cooperation projects.
The Future Combat Air System (FCAS) program, led with France and Germany, exemplifies this ambition. By 2040, it should enable Europe to have a next-generation air capability integrating drones, combat cloud, and AI.
The current threats to this project, notably due to Franco-German disagreements, could however compromise Spanish ambitions in this regard, prompting our Iberian neighbor to explore alternative options. Its goal is not to lose skills and to be able to latch onto another international collaboration if needed.
An evolving arsenal
Operationally, Spanish armament programs demonstrate a renewal. The Navy, for example, benefits from the S-80 Plus program, with the second submarine (Narciso Monturiol) set to enter service in 2026, enhancing conventional deterrence capabilities. The F-110 frigates, equipped with advanced detection technologies, also illustrate this upgrading, as well as Spain’s capacity to design next-generation ships and submarines.
On its part, the Army is transforming around the 8×8 Dragón armored vehicle, a digital platform integrated into the connected battlefield. As for the Air Force, it is modernizing its fleet with new Eurofighters and preparing for the future with FCAS while consolidating its transport capabilities (through the purchase of A400M Atlas) and drone capabilities (like the Razor, from the Spanish company Sener).
Enhanced international presence
This trend also leads to increased international projection. Approximately 4,000 Spanish military personnel are permanently deployed in around fifteen foreign countries. Spain plays a leading role in several operations, notably the EU naval mission Atalanta in the Indian Ocean, which aims to combat piracy and for which it commands from the Rota base (Andalusia).
To the east of NATO, Madrid also leads a tactical group in Slovakia and participates in the defense of the Baltic countries. It remains very committed in Lebanon through UNIFIL as well as in Africa, contributing to the training of local forces, especially in the Sahel and the Gulf of Guinea.
Between the Atlantic Ocean and the Mediterranean Sea: geopolitical challenges
In general, Spanish military strategy is based on a delicate balance between loyalty to NATO and European ambition. It includes a particular focus on the “southern flank,” considered a priority. Relations with Morocco remain sensitive, especially concerning the autonomous cities of Ceuta and Melilla (claimed by Rabat), while Sahel instability poses a direct security and migratory threat.
Moreover, Spain must face the rise of hybrid threats: cyberattacks, disinformation, pressure on critical infrastructures. These transversal dangers increase the importance of national resilience and coordination between civilian and military actors.
A power in redefinition
In summary, Spain emerges in 2026 as a military power in reorganization that has partially overcome chronic underinvestment to become a credible player in collective defense. Its model is based on a clear triptych: budget growth, technological innovation, and international engagement.
However, vulnerabilities remain, especially in terms of technological dependence and financial sustainability. Nevertheless, Madrid seems determined to assume a more assertive role in an unstable international order. At the crossroads between soft power and military power, Spain is redefining the contours of its sovereignty in the 21st century.
