In 2024, total defence expenditure by the 27 EU Member States reached 1,9 % of GDP or €343 billion, an increase by 19 % compared to the previous year, according to the annual Defence Data report published today by The European Defence Agency (EDA).

It is estimated that total defence expenditure will increase to €381 billion in 2025 (€392 billion in current prices), bringing EU’s spending to 2.1% of GDP and exceeding the previous 2% guideline for the first time since data collection began in 2006. 13 Member States allocated 2% or more of their GDP to defence in 2024 – an increase from eight in 2023 and five in 2022.

“Europe is spending record amounts on defence to keep our people safe, and we will not stop there,” commented Kaja Kallas, head of EDA and EU Hight Representative for foreign affairs and security policy.

“This investment will be funnelled into everything from research and development to the joint procurement and production of essential defence components. The EU is pulling every financial and political lever we have to support our Member States and European companies in this effort. Defence today is not a nice-to-have but fundamental for the protection of our citizens.”

“It is encouraging to see EU Member States taking their defence spending to record levels,” added EDA Chief Executive André Denk. “Meeting the new NATO target of 3.5% of GDP will require even more effort, spending a total of more than €630 billion a year.”

At the 2025 NATO Summit in The Hague, Allies made a commitment to investing 5% of GDP annually on core defence requirements and defence- and security-related spending by 2035. They will allocate at least 3.5% of GDP annually based on the agreed definition of NATO defence expenditure by 2035 to resource core defence requirements and to meet the NATO Capability Targets.

The increase, driven largely by record levels of equipment procurement and rising investment in research and development, reflects Member States’ determination to strengthen Europe’s military capabilities in response to the evolving security environment, EDAs explains in the report.

While 13 Member States increased their defence spending in 2024, total spending as a percentage of GDP still varied widely by country, from ca 0,25% in Ireland to 3,75 % in Poland. Several countries, among them Belgium, Spain and Italy, spent 1,5% or less.

Total defence expenditures as % of GDP by EU Member State 2023 – 2024, credit: EDA

For the first time, defence investment exceeded €100 billion, accounting for 31% of total expenditure, the highest share recorded by EDA since data collection began. 24 Member States met the 20% benchmark on defence investment, up from 20 in 2023. Defence investment is dominated by procurement of equipment (83%).

Research & development amounted to over 12 % of total defence investment. A significant rise in R&D spending is essential to develop next-generation capabilities and reduce dependence on foreign markets.

While defence spending continues to grow and is forecast to climb further in 2025, it remains below the levels of military powers such as the US (3.1 % of GDP in 2024). Unlike the US, EU Member States are not spending their defence budget as a centralised and unified bloc. This leads to greater fragmentation, duplication of efforts, and reduced efficiency in defence spending.

EU countries possess higher numbers of main battle tanks, artillery systems, and infantry fighting vehicles when compared to the US, but these weapon systems are highly fragmented across different models.

Fragmentation is also evident in the naval domain, where EU Member States operate a wide variety of frigates, destroyers, and submarines. At the same time, the EU’s limited fleet of air-to-air tanker aircraft, as well as medium and heavy transport aircraft, highlights persistent shortfalls in strategic air mobility and airlift capabilities when compared to the US.

In 2024, Russia reportedly spent 5.5% of its GDP on defence, up sharply from 3.7% in 2023. Due to its war in Ukraine, Russian defence spending is projected to rise further in 2025, potentially reaching 6.4% of GDP.