German Chancellor Friedrich Merz has endorsed US President Donald Trump’s criticism of Spain, reiterating the NATO target for all allies to allocate 5% of their GDP to annual defense spending. This alignment comes amid heightened transatlantic tensions following Trump’s threat to impose a full trade embargo on Madrid.
The dispute stems from Spain’s refusal to permit US use of military bases on its soil for potential strikes against Iran, a move Trump condemned. He labeled Spain a “terrible” ally, citing both the base denial and its reluctance to increase defense budgets. Speaking alongside Trump at the White House on Tuesday, Merz stated the alliance must collectively meet the 5% commitment. “We are trying to convince Spain to catch up… Spain is the only one not willing to accept that,” Merz said, framing the spending target as integral to shared security.
Spain’s Prime Minister Pedro Sánchez has previously rejected the 5% pledge, calling it “unreasonable” in 2024. In response to the latest US threats, the Spanish government asserted it possesses “the necessary resources to contain the possible impact of the trade embargo” and urged the US to respect existing EU trade agreements. The European Commission moved to support Madrid, with spokesman Olof Gill stating the bloc would ensure its interests are “fully protected.”
The public rift underscores lingering strains within NATO over burden-sharing. While the alliance set a 2% GDP minimum guideline after Russia’s 2014 annexation of Crimea, the 5% figure emerged as a political aspiration during preparations for the 2024 Washington summit, pushed by the US. Spain’s current defense spending remains well below both thresholds. Merz’s explicit backing of Trump’s position marks a notable shift from previous German caution on the issue, signaling increased European willingness to apply pressure on holdout members.
The confrontation raises questions about alliance cohesion and the future of US-EU trade relations. Observers note that while Spain resists the spending target, the broader EU has signaled unity in defending its trading bloc against unilateral US measures. The episode highlights how bilateral disputes can quickly echo through multinational institutions, testing diplomatic coordination on both security and economic fronts.
