- On 22 April the Government approved a defence plan of more than 10 billion euros.
- The aim was to reach 2% of GDP that same year, the NATO commitment.
- A demanding opportunity: certifications, information security and long timelines; it should be assessed realistically.
On 22 April 2025, the Government approved a plan of more than 10 billion euros to reach, that same year, defence spending of 2% of GDP, the NATO commitment. The plan was part of the European turn towards greater investment in security, begun weeks earlier with the ReArm Europe plan and with the German reform of the debt brake.
For the economy as a whole, an increase of this size in public spending has effects that go beyond the military sphere. It involves orders to industry, investment in technology and skilled jobs, but also budgets that will have to be financed and priorities that compete with one another. It is a debate that affects companies and families, even if from a distance, and one worth following calmly and with reliable information. In following it, it helps to distinguish what has been announced from what has been carried out, and total amounts from those that correspond to each financial year.
The NATO commitment
The goal of 2% of GDP is the defence spending commitment that NATO allies took on, and Spain had been below that figure for some time. The plan, worth more than 10 billion euros, sought to close that gap that same year.
Commitments of this kind are measured as a percentage of GDP, so their translation into euros depends on the size of the economy. Meeting them requires concrete budget decisions, which are reflected in contracts, purchase programmes and investments that, once committed, run for years. That is why the announcement of a plan is only the beginning of a long process. Considerable time can pass between the announcement and the first contracts, so anyone who wants to take part should prepare their candidacy in advance.
Where the money goes
Defence spending was directed in large part to technology, cybersecurity and equipment. It is not only about classic military hardware: much of the money goes to software, communications, sensors and the protection of infrastructure, areas in which technology and industrial companies of very different sizes operate.
This means that the impact is not limited to the large traditional companies of the sector. Small firms specialised in cybersecurity, engineering, electronics or support services can take part as suppliers, usually through prime contractors. The door is open, but it requires preparation, patience and a good understanding of how public procurement works. Tender documents, bidding deadlines and subcontracting requirements are details that make the difference between submitting a viable bid and doing so in vain.
A demanding opportunity
For Spanish industrial and technology companies, a business line with very demanding requirements was opening. Public defence procurement usually calls for certifications, information security and long lead times, so it is worth assessing realistically whether the company can meet them and with which partners.
A reasonable first step is to review the certifications and quality standards already held, identify what is missing and estimate the cost and time needed to obtain it. It is also worth assessing the effect on the organisation: staff with security clearances, documented processes and the capacity to handle long sales cycles. With that information, a considered decision is better than a race to be first. And if the decision is finally not to enter this sector, the exercise will not have been in vain: improving certifications and information security benefits the rest of the business too.
A public opportunity is not one for everyone: it is one for those who meet the requirements.
This article is general information. It is not legal, tax or investment advice, and it does not take anyone’s particular circumstances into account.
