Core Points - The article discusses the ongoing tensions between Trump and Spain regarding NATO defense spending, highlighting Trump's dissatisfaction with NATO members not meeting military expenditure targets [1][3] - Spain's Prime Minister Sanchez has resisted increasing defense spending to 5% of GDP, arguing that current spending of 2.1% is sufficient given Spain's contributions to NATO [1][5] - Trump has threatened trade penalties against Spain and even suggested expelling Spain from NATO due to its failure to meet the spending target [3][5] Summary by Sections - **Trump's Demands**: Trump has been vocal about NATO members needing to increase their military spending, particularly targeting European countries to contribute more [1] - **Spain's Position**: Spain's defense spending was only 1.3% of GDP last year, below NATO's previous 2% threshold, with Sanchez arguing that current resources are being utilized efficiently [1][5] - **Trump's Reaction**: Trump expressed his frustration with Spain's lack of compliance, considering trade penalties and suggesting expulsion from NATO [3][5] - **Spain's Defense**: Spain's Foreign Minister Alvarez defended the country's commitment to NATO, emphasizing the deployment of 3,000 troops and Spain's reliability as a member [5] - **Double Standards**: The article points out the inconsistency in Trump's demands, noting that the U.S. is projected to spend 3.4% of GDP on defense in 2024, which also falls short of the 5% target [5]

Core Viewpoint - The Prime Minister of Spain, Sanchez, asserts that Spain, as a sovereign nation, will not increase its defense spending to 5% of GDP as proposed by NATO [1] Group 1: Defense Spending - Sanchez emphasizes Spain's commitment to fulfilling NATO obligations while maintaining its autonomy in defense spending decisions [1] - The decision not to raise defense spending to 5% reflects Spain's stance on national sovereignty [1] Group 2: Trade Relations - In response to threats from U.S. President Trump regarding potential double tariffs on Spain, Sanchez indicates that trade policies will be led by the European Union [1] - Ongoing negotiations between the European Commission and the U.S. regarding tariff policies are highlighted, suggesting a collaborative approach [1] - Sanchez does not believe that NATO defense spending will impact EU-U.S. trade negotiations [1]

Group 1 - The euro has appreciated by 0.1% against the US dollar, currently at 1.1620 [1] - The yield on Spain's 10-year government bonds has increased by over 2 basis points, currently at 3.229% [1] - The yield on Germany's 10-year government bonds has also risen by over 2 basis points, showing a fluctuating upward trend [1] Group 2 - US President Trump is negotiating a trade agreement with Spain, suggesting that Spain will have to pay double in the deal [1] - Trump criticized Spain's stance on NATO military spending [1]

Core Viewpoint - The President of Lithuania has stated that NATO's military spending is lagging behind that of Russia [1] Group 1 - The statement highlights concerns regarding the adequacy of NATO's defense budget in comparison to Russian military expenditures [1] - The emphasis on military spending reflects the ongoing geopolitical tensions in Eastern Europe [1] - Lithuania's position underscores the need for NATO member countries to reassess their defense budgets to ensure readiness against potential threats [1]