A smart hire

The Spanish government has made a big show of not wanting to join the European arms race, as countries across the bloc look to bolster their defence capabilities - but the financial sector has no such compunction. In a bold move, Santander has hired the former head of the British army to lead its defence lending business.

Spain's biggest bank will be hoping that General Sir Patrick Sanders, who was Chief of the General Staff between 2022 and 2024, ensures that it invests wisely in an industry set to expand by 10% a year for the next decade.

Financial institutions often stay away from arms companies, wary of the reputational risks attached to such investments. In luring Sanders out of retirement, Santander seeks to reverse that trend.

According to Darren Jones, head of the banking giant's global operation, "supporting [the defence] sector is critical for the security of the region, and as one of Europe's largest banks, we recognise the important role we must play". Cynics such as myself, who believe that banks' sole motivation is profit, thus stand corrected.

There are still some restraints to be observed in the defence spending bonanza. According to its own policies, Santander cannot invest in landmines or ammunition that contains depleted uranium, and part of Sanders' new job will be to determine "whether goods may cause or exacerbate armed conflicts or aggravate existing tensions in the final destination country".

Sanders, 59, has a master's degree in defence technology - but it's his four-decade career in the British army and bombastic stance on defence spending that make him a smart hire for Santander.

After training at the Royal Military Academy in Sandhurst, he served in Northern Ireland, Kosovo, Bosnia, Iraq and Afghanistan. In 2008, Sanders was appointed a Companion of the Distinguished Service Order and in 2012 a Commander of the Order of the British Empire.

Recent claims by European leaders, Pedro Sánchez among them, that the EU needs a multinational ground force to combat Russian imperialism echoed Sanders' calls for a "citizen army" in the UK. In a speech given a few months before he stepped down as head of the British army, Sanders claimed that it would take a "whole-of-nation undertaking" to prepare for war, and that the UK's current army is not sufficient for the task. He has also been an outspoken critic of spending and personnel cuts within the British military.

Sanders' claims about the immediacy of the Russian threat to the UK might have been exaggerated. But his calls to increase defence spending come at a time when many EU leaders are concerned about the bloc's military capacity, especially after Donald Trump's withdrawal of support.

He's likely to have more influence over defence investment at Santander than he did as head of the British army.