Sanchez backs EU plan to increase military spending, says it will reindustrialise Spanish economy

Pedro Sánchez on Thursday reaffirmed support for the EU's 'ReArm Europe' defence plan, saying the arms race will also provide an opportunity to reindustrialise Spain and the continent.

Speaking at a conference of political parties at the La Moncloa Palace in Madrid, the Spanish prime minister said that the context of defence could bring about economic growth and advantage.

"Spain must take advantage of this opportunity to improve its productive fabric in areas such as satellite communications," Sanchez said.

"We have all the ingredients to be at the forefront, as in other policies such as the ecological transition."

Sánchez's comments come in light of the current geopolitical context shaking up the decades-old transatlantic alliance with doubts emerging about the US being a reliable ally under Trump.

"We create technology; we create industry; we create an economy in Europe; the great lesson we have to draw from what is happening is that Europe has delegated its defence and security to other actors," Sánchez said during the meeting.

"It is time for Europe to step up and increase its defence capabilities.

Sanchez faces opposition over defence plan

With about 1.28% spent on defence last year, Spain is proportionally one of the lowest NATO spenders.

During a visit to Finland on Wednesday, Sanchez reiterated his commitment to reaching the longstanding two per cent NATO benchmark and hinted at the prospect of moving on with higher spending by the 2029 target date.

However, his socialist coalition government has had a difficult time passing laws because it lacks a majority in parliament and must rely on several fringe and separatist parties.

In the face of likely opposition from the rest of the political parties, Sanchez has hinted that only a part of the budget plan on defence reform will be tabled in Parliament for approval, something that the opposition has rejected.

"All those things that have to pass through Congress will do so; others will have to be sped up by the Spanish government," said Sanchez.

After the round of consultations on Thursday, the leader of the opposition conservative People's Party (PP), Alberto Núñez Feijóo, said it would be difficult for him to reach agreements with Sanchez' socialist government if it does not respect the majority political force by trying to evade Congress.

"I cannot and do not want to hide from the Spanish people that, as things stand, it is very difficult," Fejioo said.

Among others who have opposed the move is Yolanda Diaz, the deputy prime minister of the Socialists' far-left coalition partner.