Pedro Sánchez faces setbacks in EU and tensions with NATO

Spanish Prime Minister Pedro Sánchez faced failures in his bid to break the EU-Israel Association Agreement and saw Pentagon frustration revealed over Spain's NATO stance. Diplomatic sources doubt his energy crisis proposals. Spain defends its role as a reliable ally, having increased defense spending.

Pedro Sánchez left Barcelona last Saturday as a socialist leader, but a week later faced setbacks. On Tuesday in Luxembourg, his joint proposal with Ireland and Slovenia to break the EU-Israel Association Agreement failed due to lack of unanimity. Germany and Italy opposed it, and High Representative Kaja Kallas advocated other options.

At the European Council in Nicosia, Sánchez insisted on Thursday without success. On Friday, Reuters reported a Pentagon internal email considering expelling Spain from NATO for denying US access, basing, and overflight rights (ABO) in the Iran war. Sánchez downplayed it: «We don't work on e-mails. We are good allies, have reached 2.1%, and deploy forces in eastern Europe».

A NATO official clarified the treaty does not provide for expulsion. Spain has increased defense spending by 11.482 million euros via budgetary credits since 2023, reaching 2.1% of GDP this year, with over 2,000 troops in allied missions, such as 140 in Incirlik with Patriot.

Sánchez proposed extending recovery funds by 6-12 months and easing fiscal rules, but diplomats from three countries see it as «very difficult». Ursula von der Leyen stated flexibility applies only in severe recession.

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Pedro Sánchez and Yolanda Díaz seal anti-crisis deal after tense talks, with decrees for tax cuts and rent extensions amid energy crisis.
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Spanish government approves two anti-crisis decrees after Sumar tension

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Spain's Council of Ministers was delayed over two hours on Friday due to disagreements between PSOE and Sumar on housing measures amid the Iran war energy crisis. Pedro Sánchez negotiated directly with Yolanda Díaz to split the package into two decrees: a main one with tax cuts worth 5 billion euros and another extending rent contracts. Both take effect tomorrow, though the housing decree may fail in Congress.

Pedro Sánchez and Luiz Inácio Lula da Silva signed 15 bilateral agreements at their first summit in Barcelona, kicking off a forum opposing U.S. interventionist policies. Sánchez decried a 'reactionary wave' attacking peace, while Lula questioned the UN's weakening. Leaders from several Global South nations are joining the talks.

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Pedro Sánchez and Friedrich Merz have publicly closed a diplomatic crisis between Spain and Germany, stemming from the German chancellor's silence during Donald Trump's criticism of Spain. Ahead of an EU summit in Brussels, Sánchez thanked Merz for privately defending Spain. The leaders exchanged mutual thanks.

In the latest criticism of NATO amid the US-Iran war—following earlier rebukes over the Strait of Hormuz—President Donald Trump accused allies of failing to support US strikes on Iran. Posting on social media that 'NATO WASN’T THERE WHEN WE NEEDED THEM,' he met NATO Secretary-General Mark Rutte while threatening to withdraw US troops or exit the alliance, after a fragile ceasefire was announced this week.

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The Israeli government has announced the expulsion of Spanish representatives from the Civil-Military Coordination Center (CMCC), which monitors the Gaza ceasefire. Benjamin Netanyahu accused Spain of waging a 'diplomatic war' against Israel and warned it will 'pay a price'. The decision comes amid rising diplomatic tensions between the two countries.

German Defense Minister Boris Pistorius considers US President Donald Trump still unpredictable despite a recent Greenland deal. He advises Europe not to succumb to fear but to focus on building its own strength. The US is as dependent on Europe as Europe is on the US.

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Aitor Esteban, PNV president, demanded greater effort from militants at Aberri Eguna in Bilbao to stop EH Bildu overtaking them in 2027 elections and undoing Basque self-government. Lehendakari Imanol Pradales harshly criticized the pro-independence left and demanded more powers from the central government. EH Bildu, in Pamplona, called for deep institutional change.

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