EU Defence Spending Surges, But Cooperation Remains Crucial

Defence spending among European Union countries has reached a record high of €343 billion, as member states significantly ramped up their military investments by 19% from 2023 to 2024. According to data from the European Defence Agency (EDA), military hardware constitutes the largest portion of this budget, with approximately €88 billion allocated, marking a 39% increase from the previous year. Additionally, spending on Defence Research and Development (R&D) rose by 20% to €13 billion, bringing the annual cost for each EU citizen to an estimated €764.

European nations are making strides towards meeting the NATO target of 3.5% of GDP for defence spending, with notable increases in Eastern and Central Europe. Data reviewed by Euronews indicates that Poland has elevated its defence investment to nearly 3.8% of GDP, leading all EU nations. Estonia and Latvia each report spending at 3.3%, while Lithuania follows closely at 3.1%. In stark contrast, Ireland allocated a mere 0.2% of its GDP to defence.

In absolute terms, Germany leads the EU in defence expenditure with around €90 billion, which equates to 2.1% of its GDP. France follows with nearly €60 billion (2%), and Italy allocates approximately €33 billion (1.5%). Notably, all EU member states increased their military budgets for 2024, with the exception of Ireland, where spending dipped to €1.2 billion, and Portugal, which saw a reduction to €4.1 billion.

Comparative Defence Spending: EU vs Global Powers

The EDA also analyzed the defence spending of global powers, revealing that the United States invested an impressive €845 billion in defence in 2024, representing 3.1% of its GDP—nearly three times the total EU expenditure. While EU countries collectively possess more battle tanks, artillery systems, and infantry fighting vehicles, the EDA warns that their military capabilities are fragmented across various operating systems. This fragmentation diminishes their overall effectiveness.

In comparison, Russia and China spend €107 billion and €250 billion respectively on defence. Although these figures are lower than the EU’s total, the EDA notes that both nations likely achieve greater cost-effectiveness due to lower domestic prices, integrated planning, and reduced structural overheads. Over the past two decades, both Russia and China have increased their defence budgets more rapidly than the EU.

Future Challenges and Cooperation Needs

Looking ahead, the EDA estimates that EU defence investments could rise to €381 billion by 2025, bringing the bloc’s spending to 2.1% of GDP—exceeding the 2% guideline for the first time. To reach the 3.5% target by 2035, an additional €254 billion will be necessary, resulting in total defence expenditure of approximately €635 billion. The EU Commission’s Readiness 2030 initiative aims to create additional fiscal space of up to €800 billion over the next four years to further enhance defence spending.

Despite these financial commitments, the EDA emphasizes that increased funding alone will not suffice. There is a pressing need for enhanced personnel recruitment to address shortages and ensure a sufficient number of trained soldiers capable of operating advanced military equipment. The agency is urging member states to improve cooperation to maximize efficiency in spending and enhance interoperability among their forces through compatible systems and equipment.

As the EU navigates the complexities of defence spending and military readiness, the call for collaboration resonates with increasing urgency, highlighting the critical need for united action in a rapidly evolving global security landscape.