Pakistan, June 20 -- The upcoming NATO summit may face major setbacks after Spain rejected a proposal to raise defense spending to 5% of its GDP. U.S. President Donald Trump has been pushing for this new target, but Spain insists it's both "unreasonable" and "counterproductive."

In a letter to NATO Secretary-General Mark Rutte, Spanish Prime Minister Pedro Sanchez said that meeting the 5% demand would harm Spain's economic priorities and disrupt the EU's defense ecosystem. Spain is the first country to officially reject the proposal, making its stance difficult to reverse.

Several NATO members - including Belgium, Italy, and Canada - are also struggling with the idea of such a large hike, though they have not issued public refusals. Mea...