US President Donald Trump has turbocharged calls for the European Union to bolster its defences by casting doubt on Washington's central role in NATO and making overtures towards Russia on Ukraine.
"The government will launch a major national plan before the summer for the development and promotion of Spanish security and defence technology and industry," Sanchez said during a debate in parliament.
Spain dedicated 1.28 percent of its annual economic output to defence last year, according to NATO figures, well short of the alliance's longstanding two-percent benchmark and less than all other members.
Sanchez has vowed to bring forward a 2029 target date to hit the two-percent mark, but during the debate in parliament, he remained vague about the timetable.
The Socialist leader said the defence plan will build on the experience gained in recent years with the EU's post-Covid recovery scheme, which was financed through common borrowing.
He did not provide further details.
His minority government faces stiff opposition at home from left-wing allies who fear increased military spending will slash funds for social programmes.
The head of the main opposition conservative Popular Party, Alberto Nunez Feijoo, blasted Sanchez for the lack of details.
"What will the deadlines be? How much will we spend each year? Where will this money come from?" he said.
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