Welcome to the Brussels Edition, Bloomberg’s daily briefing on what matters most in the heart of the European Union.

In the run-up to the summit, Spain emerged as the lone holdout against the spending target. Pedro Sánchez, Spain’s prime minister, is in a tight spot at home, battling allegations of corruption by his aides and unable to pass a budget. “A 5% spending would be disproportionate and unnecessary,” he said on June 22nd.

The president headed back to Washington after securing a major policy change he’s pushed for since 2017 as most NATO countries agreed to significantly increase their defense spending.