Pedro Sánchez at the UN summit in Seville: "In the face of the withdrawal of some, Spain offers reinforcements."

Spanish Prime Minister Pedro Sánchez delivered a firm defense of multilateralism this morning in Seville to attendees at the 4th UN Conference on Financing for Development. "In the face of the withdrawal of some, Spain offers reinforcement," he stated, referring to aid cuts from the United States, with the dismantling of USAID (the US aid agency), but also from countries such as the United Kingdom, France, and Germany, mired in their own internal crises and determined to rearm themselves to confront the current global disorder. The OECD estimates that in 2025, the total volume of development aid will decline by between 9% and 17%, due to the cuts announced by major donors.

Spain has assured, however, that investments in defense will not be at the expense of development aid, which, as Sánchez confirmed, is expected to grow to 0.7% of GDP over the next five years. This is stated in the cooperation law approved in 2023, with the support of all political groups except Vox. "We are going to make the 0.7% commitment a reality by 2030," he insisted.

Sánchez explained that they will do so "with gradual increases each year, starting next year." "While some are cutting their contributions, Spain will do the opposite," he stated. The contributions will also be multi-year with the aim of strengthening the stability of multilateral organizations, and the funds will be advanced during the fiscal year.

On the second day of the conference, which brought together fifty leaders, with an eye toward the pressing needs of a Global South stifled by the debt crisis and now by cuts , Sánchez stated that "we must imagine a new multilateral contract for the 21st century." This new paradigm must be more representative and inclusive, in which the Global South and civil society have a greater presence. "This system is imperfect, but it is essential," added the Spanish president.

The so-called Seville Commitment , adopted by consensus by the international community but rejected by the United States, the world's largest donor, calls for reforming the so-called financial architecture to alleviate the debt crisis, improve taxation, including for large fortunes, and mobilize resources from multilateral development banks and the private sector. The document is not binding, but will be accompanied by a series of concrete initiatives—up to 130—set forth in the so-called Seville Platform for Action.

“What's at stake here is not just how to finance development, but the world we want to build. Spain's response is to lead and propose. The political value of Seville is to demonstrate that the world can be organized through solidarity, not through imposition,” said Second Vice President and Minister of Labor Yolanda Díaz, referring to the United States.

“Today more than ever, we need multilateralism. While Trump withdraws from the summit, Seville rises. While some destroy all cooperation policies, in Seville we build bridges to build more and better cooperation. Trump has not been able to do what he wanted with this summit,” he added.

Unsustainable debt

Sánchez also announced the so-called Seville Plan, through which Spain plans to contribute to this reformed multilateralism. "The multilateral system is also being challenged due to limitations and shortcomings that we must address […]. We need a change in the multilateral system if we want it to endure," he stated. He also detailed Spain's new commitments to global health, totaling €315 million, and another €500 million earmarked to combat the climate emergency.

At a subsequent event, held jointly with South Africa and dedicated to debt sustainability in the Global South, the Prime Minister stated that "the debt architecture needs a profound change. Debt can be a trap that perpetuates poverty." Debt is one of the central topics at the Seville development conference, as 3.4 billion people worldwide live in countries that pay more in debt than on education or healthcare. "If we don't act soon, we will enter a spiral of long-term debt," Sánchez estimated.

The president announced that Spain has promoted an alliance bringing together creditors, debtors, banks and multilateral organizations, and development banks. Sánchez announced that several countries have joined an initiative aimed at granting greater representation to countries in the Global South, currently excluded from creditor forums.

Sánchez also spoke about the creation of a debt swap center within the World Bank and explained that Spain promotes debt-for-nature swap programs, which encourage investment in the climate emergency. He also announced an annual investment of €60 million in debt relief for the most affected countries, which will be dedicated to sustainable development projects. Finally, he announced that Spain supports a multilateral forum to prevent debt from ending up in the hands of private speculators. Beyond concrete measures, Sánchez stated that "we need to address the structural problems."