GDP

Google has smelled blood with AI, so it has decided to spend more in 2026 than the GDP of 158 countries in the world

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New year, new budgets. Big tech companies are beginning to detail their roadmap for 2026 and the trend is clear: spend even more on AI. a few days ago, Goal announced that the planned capex (capital expenditure) rose to 135,000 million dollars and Microsoft too pointed to a similar figure. Alphabet (Google) just told everyone to “hold my hands.” May the rhythm not stop. The bomb was announced during the last results conference. Alphabet plans to spend between $175 and $185 billion, doubling 2025 capex, which was $91.4 billion, and almost quadrupling 2024 spending (52.5 billion). To put it in context, it is more than the GDP of Morocco, Kuwait, Bulgaria and up to 158 countries. At the same time, the company announced record results, surpassing 400 billion in revenue for the first time. The net profit stood at 132,000 million. Vertigo. That’s what investors seem to have felt. They count in Financial Times that, in the hours following the news, Alphabet shares fell 7% after the capex announcement, but then the fall was reduced to -1.5%. Microsoft experienced a similar response after its earnings call a few days ago, it is the response of investors to these exorbitant figures. However, as long as the results are good, it seems that the scare will not last long. Everything’s fine. They count in Fortune that Pichai assured that this year’s capital expenditure is “a look at the future” and justified his strategy by highlighting that the demand for his cloud services and DeepMind (Gemini) is extraordinary, so the investment must also be. He also announced that AI searches now surpass traditional searches and that Google Search’s business has grown 17% compared to last year. Additionally, the order book for its cloud has increased by 55% during the last quarter. It still won’t be enough. The CEO of Alphabet admitted that, despite the record results, there are insurmountable bottlenecks such as computing capacity, problems in the chip supply chain and energy limitations. These restrictions make it take a long time to get a data center up and running, or in other words, it was preparing investors not to expect an immediate return. Gemini, full out. The Google chatbot is in its sweet moment. The viral success of Nano Banana, Gemini 3 sweeping its competition in benchmarks and Apple choosing him as the new brain for the new Siri They have given a boost in popularity to Gemini, which already has more than 750 million users. OpenAI is still ahead with ChatGPT, but Google is closing the gap and Altman’s people have reacted going into panic mode. He moat of Gemini. Benchmarks are fine, but there is something much more important. During the conference, Pichai announced that they had reduced Gemini’s service costs by 78% “through model optimizations, efficiency and utilization improvements.” It is no longer that its AI is surpassing its competition, it is that it is cheaper and there OpenAI does have a problem. With its advertising businesses, the cloud and more revenue, Google has plenty of room to skyrocket its capex. In Xataka | OpenAI’s entire financial strategy depended on achieving a monopoly with ChatGPT: the opposite is happening Image | Wikipedia

It is already 68% of Laos’ GDP

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A few weeks ago, Myanmar authorities carried out a peculiar operation: the biggest raid of the country’s history against cyber fraud. More than 2,000 people were freed in the dismantling of the network. They dynamited buildings and announced the end of impunity. However, what was apparently a success for the police and the Government has turned out to be something else: a direct attack to one of the largest industries in the country’s economy. The “Scam State”. Southeast Asia has entered an unprecedented geopolitical phase that experts already describe as the era of scam status. As in a narcostatethe illicit industry has penetrated institutions so much that the economy depends on it. The impact figures are dizzying: at the end of 2024, cyber scam operations in countries of the Mekong They generated about 44,000 million dollars annually. This is approximately equivalent to 40% of the combined GDP of the region’s economybecoming the dominant engine – if not the only one – in border areas of Laos and Myanmar. Globally, it is estimated that this hidden industry already moves more than 70 billion dollars: it can rival drug trafficking. The industrialization of fraud. The financial heart of this monster is the sha zhu pan (pig-butchering scam in English) or “pig slaughter”: what is known academically as hybrid investment frauda method that moves away from traditional phishing. These are not poorly written emails or messages, but rather long-term social engineering operations that came to light with the Seaview Hotel case. In fact, they are very sophisticated, both in terms of methodology and instruments: The “grooming” phase: Scammers cultivate trusting relationships for months with victims before suggesting an investment. It is a way of approaching the scammed, without making it seem like what it really is. Cutting-edge technology: according to The Guardian, criminal groups have implemented Generative AI to translate and guide conversations in real time. They also rely on deepfakes to make video calls that impersonate identities. Corporate infrastructure: investigations such as this one from OCCRP reveal that these centers operate like true multinationals. That is, they have HR, IT, quality control departments and incentive systems where employees celebrate successful thefts with animated GIFs. Immunity and high-level complicity. The reason this industry is immune to raids is simple: the criminals and the government are often the same. The infrastructure is massive and operates in plain sight in special economic zones. The penetration into politics is absolute, it is clear after taking a look at three countries in which there are changes: Thailand: In October, the deputy finance minister resigned after being linked to a money laundering network for these operations, according to reports Reuters. Cambodia: Chen Zhi, founder of the Prince Group and advisor to the Cambodian prime minister, has been sanctioned by the United Kingdom and the United States. for running forced labor complexes and scams. Philippines: Former Mayor Alice Guo was recently sentenced to life imprisonment for running a massive scam center while in public office. human tragedy. Beneath the surface of these multi-million dollar operations lies a humanitarian crisis. We are talking about centers that are not operated by volunteer hackers, but by modern slaves. It is estimated that only in the centers of the border between Thailand and Myanmar Up to 100,000 people are being held. They are victims of trafficking, lured with false job offers in technology and forced to defraud under the threat of physical and psychological torture. When the army demolished the KK Park building, it is estimated that up to 20,000 of these workers disappeared, forcibly moved to new complexes so that the wheel of money does not stop spinning. Cover image | Composition with images of Sora Shimazaki in Pexels and lulu1283 in PxHere In Xataka | An unknown musician became a millionaire in a short time. What the FBI found is a warning to boaters

The 96,000 positions that 2% of GDP in defense aspire to create

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A few months ago, Spain He promised to increase your investment in defense to 2% of GDP. According to data of the Industrial and Technological Plan for the Security and Defense presented by the Government, that effort implies mobilizing 10,471 million euros in 2025 and take a big step and place at the level of commitments assumed with NATO, but without touching social spending or increasing taxes. These investments in the defense industry, beyond moral or political debates, can be an opportunity to An impulse to industry national, directly affecting the reactivation of factories and companies that for years have been references in technology and production. More qualified employment. The estimates, both of the Government and the different sectoral employers, indicate that, between direct and indirect jobs, 96,000 new jobs such as sectors such as aeronautics, robotics, programming and manufacturing will be created. This change not only It implies more workbut also an investment in continuous training and new opportunities for young people seeking to join the labor market. Specialties such as telecommunications engineering, aeronautics, electronics or cybersecurity experts are between The most wanted profiles In this sector, but also specialized profiles in the manufacture of weapons such as welding, assembly specialists or sheet experts who leave the different degrees of FP. Chords to the qualification. This requirement of highly qualified personnel is also collected in the wages that this sector offers. According to KPMG data published by Fifodiesthe average salary of the employees of the defense sector are 85% higher than the Spanish average, which stood at 25,896 euros per year. This implies that, on average, the qualified employees of this sector would be charging salaries of 47,907 euros per year. Most of these well -paid jobs have occurred in the aeronautical subsector, followed by the Naval, which are the ones that have grown the most In recent years and lead sales figures by monopolizing 74.5% of the total sector billing. A booming sector. The defense industry, together with aeronautics and security, is living a moment of great impulse in which, given The technological pressure that we are seeing in conflicts Like Ukrainean important effort is being made in R&D. That implies more research and Capture employees with high qualification. According to data of Aesmide (Association of Contractor Companies with Public Administrations), in 2023, the defense -related sectors reached a turnover of 13.9 billion euros, of which 1.2 billion were to the aerospace sectorwhich registered a reinvestment in R & D+I of 15.5% of its turnover, according to The annual report De TEDAE (Spanish Association of Technology Companies for Defense, Security, Aeronautics and Space (TEDAE). Within this figure, defense and security they contributed more than 8,000 million, and the impact on employment was 115,000 direct jobs and 95,000 indirects distributed in different parts of the country, with Madrid, Andalusia and the Basque Country in the head. The opportunities are not only in Spain. However, Spanish companies They are not the only that have been launched to the qualified talent hunt: the increase in defense spending has been activated throughout the continent up to 30%, So, according toor published by The confidentialthe whole sector in Europe will compete for capturing that talent. That battle for talent has made educational initiatives oriented to train new professionals that nourish the demand for labor that this sector will live in the coming years. Spanish giants wake up. The spin of Spain towards a greater investment in defense is promoting reference companies in the sector such as Indra and Navantia to expand their templates to respond to new demands. The steel industry, key to the manufacture and maintenance of military equipment, is also reactivating and plans to generate thousands of indirect jobs thanks to the increase in demand for the production of pieces and systems. Last July, Indra announced Its intention to incorporate 2,400 new employees into their defense divisions. 65% of these places would be destined for experienced personnel in the sector, while 35% of vacancies were reserved for young talent. For its part, Navantia has begun to incorporate new personnel with 45 new vacancies for its chopped Puerto Real in Cádiz, before the increase in orders for orders new patrolmen for the army. In Xataka | Italy has activated the “rearme” in Europe: the longest pendant bridge in the world will connect sicily for tanks Image | Unspash (Evgeny Opananko, Anfal Shamsudeen)

The most powerful countries in Europe according to their GDP, grouped in this graphic developer

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GDP is the main thermometer of the size and growth of the economy of a country. This has traditionally been reflecting the value of the goods and services produced within a country And it is something that allows us to compare the performance between regions. But, if lately it has been more on everyone’s lips, it has been for the Ukraine Warby the REQUIREMENT OF US ADMINISTRATION in terms of defense and for the European rear. Given this, it is interesting to take an eye on the situation in Europe, comparing the GDP of their countries and regions to have a more global idea of ​​the economy of the neighbors. And this graph shows it perfectly. The pizza. Prepared by Visual Capitalist and using the International Monetary Fund As a source, we can see in a very clear way the size of the economy of the different countries. But there is something important to take into account: if the GDP of any of these countries does not fit you (that of Spain, for example, it was 1,593,136 million euros in 2024 and there it says that it is 2,800,000 million dollars, the fault has the parity of purchasing power. Parity of what? PPA -Parity of purchasing power or PPP in English- is a correction that allows us to compare more directly the price of goods and services between countries. The graph has been prepared by adjusting the GDP by PPA, which allows the size and purchasing power of the different economies. What is this for? In order to measure what can really be purchased locally instead of directly transforming GDP to the international standard change, which is usually the US dollar. Thus, and using an exchange rate that eliminates the distortions of the different currency markets, the panorama is more fairly compared. In short: Economies with undervalued or overvalued coins with respect to the dollar are represented in a more adjusted way to reality and the standard of living, economic well -being and real size of the economies can be better compared. By zones. Given this, we see that, apart from Russia, Germany, the United Kingdom and France, there are more aligned economies such as Italy, Spain, Poland or Netherlands, those four above 1,000 billion dollars, and then the rest of the countries. But, if we distinguish in zones, we see the enormous weight of the aforementioned Russia and Germany. The western zone has a GDP adjusted per PPA of 14,800,000 million dollars for the 12,800,000 of the Eastern Europe. The southern Europe (curiously the so -called ‘Pigs’) with Italy, Spain, Portugal or Greece has that adjusted GDP of 8,300,000 million and that of the north (including the United Kingdom and with Sweden, Ireland, Denmark, Norway or Finland) with a GDP per PPA of 7,800,000 million. Unequal growth. When the nominal GDP is measured, the thing changes. Western Europe would continue first with a GDP of 11,000,000 million, the north with 6,500,000 million, the south with 5,200,000 million and Eastern Europe is the one that falls loudly with 4,600,000 million. Reason? Adjected to the PPA, Russia occupies a huge portion of the cake, but the nominal GDP relegates it to the middle part of the table with a GDP of 2,100,000 million. These regional disparities are what has historically marked a two -speed economic development. Europe has been adjusted and changes for a few years. In that panorama, Russia Lithuania, Iceland or Montenegro are from the countries that grow the most this year. Luxembourg, Ireland or Estonia, decrease. Others grow (Spain), and we see cases such as France or Germany in stagnation. In general, the growth From the Eurozone it was 0.7% and the European Union of 0.8%, but we must see how situations such as external factors, structural tensions or industrial slowdown in some countries to the photo of the European GDP of 2025. In Xataka | Ukraine and Trump’s uncertainty are pushing Europe to recover something until recently anathema: the mili

OpenAI is already generating GDP size benefits from a small country. Follow light years of being profitable

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Winning 12,000 million dollars a year seems somewhat prodigious for any company, but not when that company is called Openai. The evolution of income is being remarkablewithout a doubt, but both her and others – and here Anthropic is another good example – something serious happens to them: that they continue to spend more than they win. 12,000 million for OpenAi in 2025. As indicated In The Informationa new estimate that Openai’s “annualized” revenues will be 12,000 million dollars in 2025. The figure is a projection, but it is significant taking into account that in 2024 the estimated revenues were according to various sources of 3.7 billion dollars, although In Reuters They talked about the fact that they had actually reached 5.5 billion dollars. And 4,000 for Anthropic. The same media also recently indicated how the estimate in the case of one of its great rivals, Anthropic, has also risen and now It is 4,000 million dollars. Just two months ago that figure had already been checked and was 3,000 million, which means one thing: both are growing in number of subscribers. 700 million “Chatgpteros”. Another of the data to which the information article points out refers to the number of weekly active users. According to their data, 700 million people use chatgpt at some point in the week, which marks a unique milestone for the company. It is true that the vast majority of them are users of the free version, but that base is what allows part of those who use the service for free They end up pointing out to any of the chatgpt subscription plans. Income growth is being unusual in OpenAi and Anthropic, but both companies are spending absolute fortunes to end up being profitable. Source: Reddit. It will win 12,000 million, how much will it spend? In Reuters indicate that the internal estimates of the company also point to higher expenses. According to those projections, OpenAI will spend 8,000 million dollars, but that figure is dentra on direct operational expenses. There are many more associated expenses – investments, infrastructure, other financial obligations – and that makes OpenAi not profitable for now. We do not have estimated spending data for Anthropic, but it has an identical problem: Spend more than you earn. Spectacular, but. Although this growth in income is certainly extraordinary, it must be taken into account that to achieve this, these companies carry “Burning money” for years. The investment rounds that Anthropic and especially OpenAi have captured have allowed them to have a lot of room for maneuver to lose huge amounts of money without that at the moment that worries too much. And they will continue to spend as possess. Especially in the case of Openai, which thanks to SoftBank support It has great plans that will make it necessary to spend true fortunes. They have done it to Buy the Jony Ive design study for 6,500 million dollars, but above all they will do it with the project Stargatewhich still seems like very difficult to complete. But no profitability until 2029. Those responsible for OpenAi do not seem too worried, and we knew what the company’s financial road map was known weeks. They will continue losing money until 2029when supposedly – all is a free estimate, not a promise – will earn 100,000 million dollars. It will be then when the company will begin to be really profitable, but again, All this is a promise (or maybe a hope). It could not perfectly be fulfilled … and even ending up falling short. Image | das | Fortune Brainstorm Tech In Xataka | Chatgpt takes the step to conquer students and teachers: their new mode does not give the answer, I build it with you

It is one thing to spend 5% of GDP to rearm and a very different one is to sell weapons to Europe. Spain that has it very clear

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The “pacifist” Spain, which has faced the United States alone by questioning the “unit” of NATO compared to that 5% defense expense pursued by Washington, lives a paradox. Because While he refuses of the rearma, or at least the figures that are handled, has the opportunity to accompany a national company in the epicenter of that Dispension in artillery and military resources for the old continent. It We count A few days ago. The first track Morgan Stanley gave it: Indra had raised its target price by 118%. A crossroads. Of all this did an analysis The Financial Times. In the epicenter of a continent that accelerates Your rearmeSpain is presented as the more particular case Of all: The country historically more reluctant to military spending in NATO now tries Turn Indraa company of civil roots and computer tradition, in a kind of European defense champion. Partially supported by the State, which It has 28% of its capital, Indra is undertaking an ambitious (and risky) transformation with the aim of rivaling with consecrated names such as Bae Systems, the Almighty Rheinmetall or Thales. New DNA. Its new president, Angel Escribanoentrepreneur with industrial DNA forged in the manufacture of turrets for combat cars in the Middle East, has placed the reconquest of manufacturing capabilities as cornerstone of this new stage. “There has never been an opportunity like this in three decades of defense in Spain,” has declaredaware that the Expenditure supercycle European military, triggered by war in Ukraine, represents an unrepeatable occasion for the company. From radar to armored ones. Until recently, Indra It was synonym of air traffic control systems or military missions management software. His presence in defense was important but discreet, focused on digital solutions rather than tangible product. However, in the middle of a war where drones, artillery and armored scenethe company now seeks to occupy the physical space of The military industry: Also manufacture the “metal”, not just electronics. In June, he raised his participation in Tess defends 51%taking control of the consortium that produces The VCR Dragon For the Spanish army. The step was not exempt from friction: Indra faced Santa Barbara Systems (controlled by the American General Dynamics) for the course of the company, even suggesting its purchase. Although this was rejected, interest persists and the company explores other acquisitions, including the defense division from Iveco In Italy. Indra Buy and buy. The Financial Times counted That to reach 10,000 million euros of billing in 2028 (a two -year advanced target compared to the original plan), the road map includes more than 20 possible purchase operations in Europe. On the horizon even an option as delicate as tempting appears: acquire Mechanical & Engineering notary (EM & E), the armament firm founded by the president himself, which, a priori, would create an obvious conflict of interest, but also a technical synergy difficult to match. The civil DNA dilemma. Despite of the turn Towards the defense, Indra remains a mostly civil company: its IT unit, MINSAIT, represents 62% of your income, compared to 21% of the military area. Minsait competes in the corporate world with giants such as Capgemini or Infosys, providing technological services to banks, health systems and public administrations. Some analysts and former director see in this duality a Structural contradiction: defense and services are “water and oil”, Explain the FT. In fact, when in 2024 the company announced that the defense It would be his priority And that Minsait would become “not strategic”, the market reacted positively Given the possible sale of your business not related to war. The company failed to close any agreement and now notary states that it only wants burn off the branch of payments, while it begins to revalue the rest of the unit as a source of dual use technologies (AI, cybersecurity or cloud solutions) that can adapt to the military environment. This reconsideration, although pragmatic, keeps alive the tension between what the market desires (a purely defensive company) and what the management is willing to offer. Reputation and influence. It is the last of the legs that was analyzed in the Times report. Although their actions have quadrupled since the Russian Invasion of Ukraine and its market value already exceeds 6,000 million In euros, Indra continues to quote with a strong discount regarding its European counterparts. While Bae is valued at 25 times its planned benefits, and Rheinmetall touches 60 times, Indra stays in just 18. Reasons? According to analysts As Beatriz Rodríguez de Bestinver, the growing interference of the Spanish government in the corporate strategy, which generates uncertainty about economic logic behind some decisions. It is also pointed out that, despite its turn, Indra is not yet perceived as a defense company in its purest form. Nor does the perception of improvisation in the transition from software to military hardware or doubt about whether the State be willing to firmly support the qualitative leap. The put by war. No doubt, the Spanish case tests the European model of rearme: Can a historically pacifist country lead a robust defense industry without sacrificing its institutional culture? The scribe plan It seems clear: cover all dimensions of the Modern combat. In the sea, Indra supplies Radars and Sónar for the submarines of Navantia, and in the air, leads Spanish participation in the Future Fuat Air System (FCAS), together with Airbus and Dassault. Plus: in space bought 90% of the Hispasat satellite operator for 725 million euros, and on land, already controls part of armored production, with a view to incorporating armament and sensors. It even has a participation In ITP AeroManufacturer of aeronautical components. Yes or no. In summary, the concept of “total war” seems to have penetrated the Indra strategywhich is no longer raised as a party supplier, but as a Comprehensive actor of the European war ecosystem. Notary summarize His vision with a phrase that contains both urgency and ambition: “We would not forgive if we were not able to transform this company into what … Read more

The United States has threatened reprisals to Spain if it does not put 5% of GDP in defense. Olive oil trembles

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They do not run easy times for Spanish olive oil. Still Broken marketthe turbulence in prices and suspicion of the “speculation”now an unexpected threat is added: Donald Trump’s anger. Yesterday, after the disagreement between Washington and Madrid during the NATO Summit, the Republican said he will “pay” Spain for his refusal to dedicate 5% of GDP to military spending. He did not go into details, but it was enough to stir the ghost of the tariffs. Especially for a sector, that of olive oil, with a key weight in the US. “They pay double”. It is not the first time that Donald Trump shows Your anger For the reluctance of Spain to dedicate 5% of GDP to defense, but never before had it done so round. On Wednesday, after Sánchez insisted on his refusal to reach the same expense commitment as the rest of NATO allies, the Republican warned Spain that would have to pay yes or yes. “It is terrible what Spain is doing and we will make it pay,” Trump started After the NATO summit held in The Hague. “It is the only country that refuses to pay. We are going to make them pay twice, but otherwise (…). The Spanish economy is going very well, but it could be razed if something happens.” Have I heard tariffs? The US president did not stay there. He said he would look for a way to “compensate him” and launched a notice: “We are negotiating with Spain a commercial agreement and we will make them pay double.” The experts They recognize that it is difficult for the US in less than two weeks The deadline agreed by Washington and Brussels expires to avoid a tariff war, his words have raised blisters. “It takes us out of the market”. The restlessness is greater among the sectors with the greatest presence on the other side of the Atlantic and that, therefore, more harmed would be seen if Trump uses its tariffs to ‘punish’ Spain. In 2024 our country exported goods worth more than more than 21.200 million of dollars, with a prominent weight of certain sectors, such as machinery, pharmacist or agri -food. And in the latter there are those who already recognize their concern. “It seems tremendously serious. It gives us panic and of course (if fulfilled) it completely takes us out of the market,” Recognize to the Efe Rafael Sánchez de Puerta agency, president of the Agrifood Cooperatives Oil section. The sector knows what he’s talking about, he remembers, because years ago he has already suffered The tariffs activated by Washington in the middle of Boeing-Airbus commercial war. A figure: 1,031 million. The olive oil is not the only sector that has been put on guard. In the last hours the looks have also been directed to other industries with a strong presence in the US, such as The wine or pharmacist. However The data The government shows that the oil mills are one of the most vulnerable to Trump’s anger, at least within the agricultural sector. Last year they sold in the US more than 113,400 tons of olive oil by 1,013 million of euros, 58% more than the previous year. In fact, the American is one of the largest markets in the sector, after the Italian. If the White House decided to apply levies to olive oil, Spanish producers would see how they are complicated 15% of its exports. The what … and when. The tariff ghost also caught the oil industry at a complex time, after several years marked by squalid campaigns due to droughts and a not much simpler horizon. Although farmers are enjoying a good harvest, which will overcome the 1.4 million tonsthey face a price drop in origin that has dragged them to a committed situation. So much that the Ministry of Agriculture has already moved to remove oil from the market, If you judge it necessary. Images | Gage Skidmore (Flickr) and NEUFAL54 In Xataka | The Spaniards have been telling us that olive oil is the healthiest. Science has something to say

The strange thing is not that Spain has opposed 5% of GDP for defense. The strange thing is that it was the only country

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At the gates of the Great summit From The Hague, NATO has seen how their debate on military spending had a Unexpected protagonist: Spain. Pedro Sánchez’s refusal to expand that chapter until reaching 5% of GDP has resulted in a strip and loosen between Madrid and the alliance that has resulted in a covenant in extremis which will give greater flexibility to Spain. The key will be that it meets the objectives agreed by the rest of the members, not whether or not you need 5% to achieve it. The position of Spain is interesting because it opens a background debate: should defense capacities be set based on a random percentage or based on the real needs of each country? Are general spending thresholds? A percentage: 5%. Beyond the capacities, objectives, pacts or the role of each country, over the last months the debate within NATO has revolved around a figure: 5%, the percentage of GDP that, According to the allianceeach member nation must allocate to the investment in defense. To be more precise, the idea of ​​NATO is that 3.5% is dedicated to basic expenditure, and the remaining 1.5% to “related investments”, which allows infrastructure or expense in industries. The figure is not accidental. Is exactly the commitment that He claimed Donald Trump, who in December, before even settling in the White House, already He complained openly of the low level of investment of the rest of NATO members and accused the alliance of “taking advantage” of the United States. A protagonist: Spain. With that backdrop and after months, emphasizing the idea that the allies had to increase their expense in defense, to early month NATO made it clear what its new requirement would be for the allies: to raise the 5% defense expense of GDP in 2035. The agreement was accompanied in addition to an investment plan and a list of new objectives that must be validated at the summit that will be held this week in The Hague. Before that date arrived, however, a voice that was not willing to comply with the 5%goal arose: Spain. “For Spain to commit to a 5% goal would not only be unreasonable, but also counterproductive,” said Pedro Sánchez in A letter Sent to NATO general secretary, Mark Rutte. In his letter he remembered that raising the investment in 5% defense of GDP would be “incompatible with our welfare state and vision of the world.” With its position, the Moncloa became A loose verse Within the alliance, which even annoying To Washington. The Giro: A letter. The disagreement between the NATO dome and Madrid did not last too long. Yesterday Sánchez revealed that both parties have reached an agreement that basically gives Spain wide to decide what percentage of its GDP dedicates to meet the objectives set by NATO. That is, the country undertakes to reach the new Capacity objectives military of the alliance, but without having to dedicate 5% of their GDP. The key is to get there, not how it gets. Sanchez even shared in X Mark Rutte’s letter confirming that NATO will be flexible in that last aspect. In it, the general secretary of the Alliance is clear: “I assume that Spain is sure that the new capacity objectives can be met with a spending trajectory of less than 5% of GDP,” Explain: “I confirm that the agreement reached at the next NATO summit will grant Spain the flexibility to determine its own sovereign trajectory to achieve the objective.” The agency, of course, will review its advances in 2029. New percentage: 2.1%. The million dollar question arrived at this point is … How much does Spain plan to invest? In 2014, NATO It was marked and the goal that the defense spending reached 2% of GDP, but many of its members were maintained last year far from that threshold that is considered today “insufficient”. Among the lags are Portugal, Italy or Canada, countries that, in some cases, have made a effort To get to the Hague Summit fulfilling 2%. In the list also appears Spain, whose investment in defense was around last year, according to The data from NATO, 1.3% of GDP. The Government It has moved token Already for the investment to reach this year in 2%, but they do not seem willing to go much further. In yesterday’s statement in which he announced the agreement with NATO, Sánchez insists that the country is in a position to comply with the rest of the allies without moving too much from the 2%threshold. “Spain will need 2.1% of its GDP to acquire and keep all personnel, all equipment, all infrastructure requested by the Alliance to deal with our abilities to those threats,” Sánchez wields. And emphasize: “2.1%, no more, or less.” “Going from 2 to 5% from here to 2035 would demand to spend about 350,000 million euros, which could only be achieved based on raising taxes at 3,000 euros per year, eliminating benefits, reducing pensions by 40% or cutting in education.” The substantive debate: capacity or percentage? The case of Spain is interesting both for what it represents within NATO and for the debate that opens: does it make sense to link the objectives of GDP expenditure percentages? What is that general threshold for? Is it only political, a mesurable consensus point, or is it really related to the capabilities of the different allies? Sanchez has gone to the background of that discussion and throws doubts about the usefulness of setting an expenditure objective such as 5%, shared by the 32 NATO members. “They think that, for example, in some countries the average salary of a soldier is three times greater than in others who are also NATO members, or that producing or acquiring these defense capacities in certain countries costs half than in others,” reason The socialist. It is not the only one in which it points in that direction. A WARNING: “Insufficient”. In A recent article Published by Andrew Horton and Putri Handrianti and … Read more

The percentage of GDP that each country allocates to Defense, exposed in this graphic with an unavoidable protagonist

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Talking about war is looking at Ukraine and Russia. The contest between the two countries It is dilated from its start in 2022, but there are many countries that are in a War situation (between them or internally) and many others in constant tension, such as Myanmar, India and Taiwan with China either Poland with Russia. And that implies one thing: They spend more money in defense. Not only them: the world is spending more money on that militarization, and in this graph prepared by Visual Capitalist We can clearly see the military spending of each country in proportion to its GDP. Spending compared to your GDP. The gross domestic product is a A country’s economy indicator. It is the sum of all the goods and services that occur within a country for a year and, if it goes up, it means that the economy produces more. If you go down, on the contrary. That money has to be reinvested, and what we are seeing is that there are countries that are increasingly investing more money from their GDP in defense. For the elaboration of the graph, the data of the International Stockholm Institute for Peace Research -sipri- and, although these data are public, there are cases such as Russia, Saudi or China Arabia in which estimates have to be resorted to. The evergreen trio. In the infographic Ukraine stands out as the country that more money in relation to its GDP has invested in defense. It is estimated that Ukraine allocated $ 64.7 billion to His military arm. It is, with a lot of difference, the country that is making the most effort in the world in this regard, but the funny thing is that others with a much lower defense percentage, reach Astronomical figures. This is because the GDP of these other countries is much higher. Thus, we see that Israel with its 8.8% of GDP in defense, Algeria with 8% or Saudi Arabia with 7.3% or approach a Russia that invests 7.1% of its GDP, which translates into about 149,000 million dollars. Then we have Chinainvesting 1.7% of its GDP – about 314,000 million dollars – and the true monster: a United States that, with its 3.4%, is estimated to invest about 997,000 million in defense. Logical. As we say, it has all the meaning that is the countries with greater tension that most invest in defense because it is not necessary to have an open war to be in those first positions. An example is Poland, which has increased spending due to recent tensions with Russia. Another example is that of Algeria, which in 2022 allocated 4.1% of its GDP to Defense and in 2024 the figure folded to 8% due to the dispute of the Western Sahara with Morocco. Alcista Trend. According to the SIPRI, although not all NATO members fulfilled their objectives, something for what Trump is pushingmilitary expenditure did increase in all of them. The aforementioned United States represents 66% of NATO spending And more than a third, they alone, of the world military spending. And the situation is far from sending. In 2023, global military expend Cold war. For contextualizing something else, the agency estimates that the United Kingdom increased its military expenditure by 2.8%, France by 6.1%, Sweden in 34% and Mexico by 66% during the last year. In total, taking world GDP, it is estimated that the world spent 2.5% of it in the army, when the last years had remained around 2.2%. And that before Europe installs rearme. In Xataka | To hunt Russian drones, Ukraine is resorting to a revolutionary technique … from World War I

look beyond 2% of GDP

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In record time the European Union has seen how defense spending went from being a secondary issue in the political debate, almost an annoying issue, to a whole hot potato. And it is logical. In just three years Brussels has had to deal with two great challenges. First, in February 2022the advance of Russian troops to Ukraine and the beginning of a war at home doors. Second, The return to the White House of a Trump that He has already warned to the EU that will not always have the US military support. Faced with such a scenario, the question is obvious: is Europe that owns its own defense? What should do to be? “The old days”. A few days ago, during the Munich Security Conference, Volodymyr Zelensky He launched a notice About the turn that has printed Trump’s return To the White House in the relations between Washington and Brussels: “The old days in which the US supported Europe just because it always did (…). From now on, things will be different and Europe has to adapt.” The words of the Ukrainian leader sounded particularly serious because they do not refer to economic policy or international diplomacy (or not only). In Munich, Zelensky spoke of something that directly affects his country: defense. Hence the warning was accompanied by a glove Speed ​​to the Brussels table: “I think the time has come, the European Armed Forces must be created.” “Guarantee your own defense”. Words matter, but it matters above all the context. In the scarce month he has been in the White House Trump has already made clear some of the master lines of his second term. And one of them happens, indeed, due to a substantial change in relations with Europe. In Economic matter… and defense. The Republican has demanded that NATO countries raise your expense 5% of their GDP, a clear message to the EU countries, which add 23 of the 32 members of the alliance. Throughout the last weeks Washington has insisted on the need for a “rebalancing” In transatlantic relationships and He has made clear that the US military presence in Europe “will not last forever.” Vice President JD Vance has even gone further and took advantage of the Munich forum to launch A NOTICE TO NAVIANS: The old continent must “take a great step to guarantee its own defense.” In summary, the EU risks running out of the support of an US that today seems more interested in the Indo-Pacific. A table without a chair for the EU. If there has been a clear test (and above all graphics) of the change of scenario in defense, it was left without a chair in The negotiating table Mounted a few days ago in Riad to talk about the Ukraine War and its possible resolution. There were representatives of Russia, the US and even Saudi Arabia, host; But no Europe for anger from its leaders. Nor kyiv, protagonist of the negotiation. It was not a surprise. Although later He modulated his toneWashington’s representative for the Ukraine War, Keith Kellogg, already He had made clear Days before the EU would have no place on the table. With that backdrop and in full approach between Donald Trump and Vladimir Putin, the vice president of the National Security Council of Russia, Medvedev, He sent a message Of course to Brussels: “Single and cold Europe is crazy with jealousy and anger (…). It is not surprising. Its time is over. It is weak, ugly and useless.” The time of the European Army? The question that remains is the one that slid a few days ago Zelensky: Has the time to boost the European Armed Forces? The idea is not much less new. The French president, Enmanuel Macron, has pointed out In the past in that direction, which is not recent or oblivious to the origins of the EU. In 1954 the mint He already raised Create the European Defense Community and Parliament itself presume that since 2016, after Crimea’s invasioncommunity levels have been taken to “reinforce Europe’s ability to defend themselves.” A complex movement. Europe has promoted forums, the European Defense Fundthe Strategic compass wave Industrial Defense Strategy And he has reinforced his defense expenditure, as highlighted by the European Commission itself, increasing its parties of the Member States more than 30% In a matter of a few years, coinciding with the invasion of Ukraine. However, despite these movements or even the social support of the common defense policy (supports it 77% of Europeansaccording to the Eurobarometer of 2024), the analysts They usually coincide In how complicated an EU army would be promoted, at least in the short term, or even shielding security policy and Common Defense. The EU is a club of states with interests that do not always coincide, just as the perception of threats does not do. That without counting on complex which are decision making at the community level or that, such as Remember From Investigate Europe, creating an army under the command of the EU would imply that national governments would have to give up sovereignty. Although the opposite was devised, the summit held these days in Paris He has evidenced those difficulties and there are those who, as the Polish Foreign Minister, already Close the door to a unified army. Expenditure in defense of the EU Member States. Policy issue, and expense. The other great question about European defense, especially after Washington’s movements and Trump’s demand that NATO countries increase their expense is … How much do EU countries invest in defense? Is it enough? And if not, how much more would they have to spend? For now von der Leyen He has already raised Freeze the fiscal rules so that the EU is seen with hands free to invest “hundreds of billions” of euros precisely for that purpose: defense. “For extraordinary times it is possible to have extraordinary measures in the stability and growth pact”, He assumed days ago The European leader. The … Read more

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