Spain to up defense spending by $2.3B

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MADRID (Reuters) - Spain will spend an additional 2.08 billion euros ($2.28 billion) on defence this year by reallocating funds to Defence Ministry procurement contracts, the government said on Tuesday, as the country faces pressure from NATO allies to meet its spending targets.

Among the 32 members of NATO, Spain has the lowest defence spending as a share of its economic output, at just 1.3%. Getting to the alliance's 2% target would require spending roughly an additional 10 billion euros ($10.8 billion) a year.

The country had committed to spending 2% by 2029, although Madrid recently vowed to reach the target well before that year - without specifying the new timeline - as Europe readies for a rearmament push.

"The government's will is to reach (the 2% target) as soon as possible," government spokesperson Pilar Alegria told a news briefing after a cabinet meeting.

She said the funds drawn from credit transfers would mainly be used for the "modernisation, maintenance and improvement of personnel, infrastructure and facilities" through existing contracts.

Spain's public budget has been rolled over since 2023 due to a lack of support for the minority government in a very fragmented parliament.

($1 = 0.9141 euros)

(Reporting by Inti Landauro, David Latona and Emma Pinedo, Editing by Andrei Khalip)