The government will increase its spending on defense to the equivalent of 2% of Spain’s economic output this year.

Prime Minister Pedro Sánchez said Spain will meet NATO’s defense spending target this year as pressure grows on the eurozone’s fourth-largest economy and NATO laggard to boost its military expenditure.

Spanish Prime Minister Pedro Sánchez announced Tuesday that his government will invest more than €10 billion to boost military spending, aiming to reach NATO’s defense spending target of 2% of GDP by 2029.