The European Defence Agency (EDA) has today published its annual Defence Data report for 2023, detailing defence spending from all 27 EU Member States. At a record €279 billion [1], 2023 European defence spending increased by 10% on the previous year, marking the ninth year of consecutive growth. Twenty-two of the Member States increased defence expenditure, with 11 increasing spending by over 10%.
2024 ForecastSeparately, the Coordinated Annual Review on Defence (CARD) report, which provides an overview and analysis of the EU defence landscape for Member States, forecasts the following spending for 2024:
The return of full-scale war to Europe and efforts by Member States to strengthen their military capabilities led to a noticeable jump in defence spending in 2023.
Chief Executive of the European Defence Agency Jiří Šedivý said: “The European Union is making strides in defence investments, spurred by the urgency of the threats we face. Still, a large proportion is spent on off-the-shelf equipment from outside the EU, highlighting the need to fortify the European Defence Technological and Industrial Base. Buying together saves money, while developing assets together makes us more independent.
I welcome rising research spending. But Europe lags behind the United States and China in defence research and technology investment. To secure Europe’s future, we must prioritise innovation and unity."
Commitment to investmentThe allocation of €72 billion of total defence expenditure to defence investment by Member States marks robust growth of 17%.
The agreed benchmark of 20% total expenditure in this area is surpassed for the fifth year running, reaching 26% across the EU. Twenty Member States reached this collectively agreed benchmark, with Luxembourg (59%), Estonia (49%), Finland (45%) and Poland (45%) having the highest allocation of their overall defence expenditure to investment.
Research spending slipsDespite increased spending dedicated to defence research and technology, Member States are still failing to reach the 2% benchmark of defence expenditure dedicated to R&T activities with two countries accounting for more than 80% of R&T spending at EU level. EU collaborative endeavours such as EDA’s ad hoc frameworks and funding via the EDF can collectively bring the EU closer to achieving the benchmark for defence spending allocated to R&T activities.
European Collaborative Defence R&T by funding sourceFigure 12, page 17 of the report
BACKGROUNDEDA collects defence data on an annual basis, and has done so since 2006, in line with the Agency’s Ministerial Steering Board Decision of November 2005. The Ministries of Defence of the Agency’s 27 Member States provide the data. EDA acts as its custodian and publishes the aggregated figures in its “Defence data” booklets and on its website. Datasets of MS are available since 2006 on the Defence Data Portal on EDA’s website.
[1] Figures are expressed in 2023 constant prices.
On November 19, German Defence Minister Boris Pistorius was received at the Agency by Chief Executive Jiří Šedivý and Deputy Chief Executive André Denk. This marked the first bilateral meeting at EDA’s offices between the Agency’s top management and the Minister.
The Chief Executive briefed Minister Pistorius on EDA’s current work in supporting collaborative defence research and capability development across Europe. He also thanked him for Germany’s strong support and active participation in the Agency’s projects and programmes. The Chief Executive updated the Minister on recent developments within the Agency and the Agency’s involvement in the EU’s military response to Russia’s war of aggression against Ukraine. This includes joint efforts to address defence investment and capability gaps in Europe.
French high-level visitOn November 20, Chief Executive Šedivý and Deputy Chief Executive Denk welcomed France’s Deputy Defence Minister Jean-Louis Thiériot to EDA.
Both visits follow the recent approval of the 2024 Coordinated Annual Review on Defence (CARD) report on November 19, which identifies actionable collaborative opportunities for Member States to develop critical military capabilities together.
Defence Ministers approved on 19 November 2024 the 2024 Coordinated Annual Review on Defence (CARD) report — the EU’s ‘State of the Union’ on defence. The review identifies actionable collaborative opportunities for Member States to develop critical military capabilities together. For the first time, the adoption of the report is combined with the signature of letters of intent by Member States in four areas: integrated air and missile defence; electronic warfare; loitering munitions; and a combat surface vessel.
In addition, the European Defence Agency released data showing that Member States’ defence expenditure is set to reach €326 billion, which represents 1.9% of EU GDP in 2024. Compared to 2021, before Russia’s war of aggression against Ukraine, spending this year is up by more than 30%.
The 2024 CARD report, produced by the European Defence Agency (EDA) in coordination with the European External Action Service (EEAS) and the EU Military Staff (EUMS), was approved by Ministers of Defence during the EDA Steering Board.
Head of the European Defence Agency, High Representative/Vice-President, Josep Borrell said: “The 2024 CARD Report is clear: national efforts, while indispensable, are not enough. The geopolitical landscape makes our cooperation, alongside increased spending, essential to be ready for high-intensity warfare. Member States’ total combined defence expenditure is set to reach 1.9% of EU GDP in 2024.
Additional funding for defence should be spent as efficiently as possible, and using part of it through collaborative European investments on capability needs would help. We have identified concrete collaborative opportunities — and Member States are taking action, as demonstrated by the four Letter of Intents signed by respective defence ministers to take concrete action together in those specific areas.”
FOUR COLLABORATIVE OPPORTUNITIES
The CARD process identifies a number of intersections and common ground between Member States’ defence plans, based on which EDA identified collaborative opportunities. For the first time, the adoption of the CARD Report is combined with the signature of political letters of intent by a considerable number of Member States. This new development highlights that Member States are interested to work together on developing these military capabilities. The scope of these letters of intent ranges from short-term joint procurement, through medium-term modernisation and upgrades, to long-term development of future capabilities. These could be implemented through EDA or as Permanent Structured Cooperation (PESCO) projects.
EDA Chief Executive Jiří Šedivý said: “To become a credible security provider, the EU must develop strategic capabilities, including for high-intensity warfare scenarios. The collaborative opportunities will bring national policymakers, planners, and armament experts together to develop relevant military assets. These are in line with NATO priorities. EDA is ready to make these collaborative opportunities a reality.”
THE COLLABORATIVE OPPORTUNITIES EXPLAINED
Integrated Air and Missile Defence (IAMD) is crucial for protecting Europe’s critical infrastructure, urban areas, and military forces from an increasingly complex array of airborne threats, including ballistic missiles, cruise missiles, and unmanned aerial systems.
Electronic Warfare plays a critical role in modern conflicts, enabling the disruption of enemy communications and sensors while protecting friendly forces from detection and interference. This can ensure information dominance and safeguard national security.
Loitering Munitions are versatile systems that can hover over target areas and engage whenever necessary, combining intelligence-gathering with precision strikes. Recent military operations have all confirmed the disruptive potential of this capability.
European Combat Vessel (ECV) is the common name to a multipurpose modular surface combat vessel. As it is a large peninsular surrounded almost entirely by sea and with more than 80% of its trade dependent on maritime transport, Europe needs strong capabilities for protecting its waters, while being also able to respond to conflicts abroad.
DEFENCE SPENDING TO REACH 1.9% OF EU GDP IN 2024
European Defence Agency data shows that EU Member States are closing the gap in 2024 towards the NATO 2% guideline, as Member States’ total combined defence expenditure is set to reach 1.9% of EU GDP.
This is possible thanks to a more than 30% increase in defence spending compared to 2021, with defence spending in 2024 estimated to have reached €326 billion, exceeding earlier projections. In 2024, Member States are also expected to spend more than €100 billion on investment, which goes beyond the agreed target of dedicating 20% of defence, in line with their commitment under the Permanent Structured Cooperation (PESCO).
Additionally, 10 Member States are projected to allocate more than 30% of their total defence expenditure to investments. Investments in researching, developing, and procuring new defence capabilities are expected to rise from around €59 billion in 2021 to €102 billion in 2024
The enduring challenge for the military has been to prepare for potential deployment in future scenarios, equipped with the right capabilities and strategies. This involves envisioning and testing different solutions, while engaging industry, academia, and research centres.
Earlier this year, the European Defence Agency (EDA) launched the Autonomous Systems Community of Interests (ASCI) to do just that. It has attracted over 750 members from across the warfare domains. Building on the EDA Action Plan for Autonomous Systems, the community held its first conference in Brussels from 13 to 14 November 2024.
The aim was not only to delve into the technological challenges and threat landscapes but also to emphasise the need for ethical guidelines and standardisation. The event underscored that integrating autonomous systems into European defence is as challenging as it is essential, highlighting an area where Member States collaboration will be crucial to success.
“The Autonomous System Community of Interests is a cross-directorate effort at EDA, reflecting the need for diverse and complementary perspectives and know-how” André Denk, EDA’s Deputy Chief Executive, told the conference. “The end goal is to ensure Member States’ armed forces are equipped with highly autonomous, effective, and reliable systems as critical assets on the future battlefield” he said.
The EDA Action Plan for autonomous systems underpins these efforts. The plan aims to improve the performance of individual unmanned systems, develop and enhance autonomous systems to work together, and enable manned-unmanned teaming across domains. It is important to note that EDA and EU armed forces are not developing fully autonomous lethal systems.
Ukraine’s experiences in recent conflicts offer insights into the role of autonomous systems in modern warfare. Their contributions show how autonomous systems can enhance operational precision, flexibility, and risk mitigation. ASCI’s mission centres on three key priorities: recognizing autonomy’s indispensable role in defence, establishing ethical and regulatory standards, and enhancing collaboration across Europe.
“ASCI stands as a collaborative force, linking civilian and military efforts and fostering essential partnerships. ASCI is not just a network; it is a community with a shared purpose” said Nathalie Guichard, EDA’s Research and Technology Director. “The creation of ASCI has never been more essential. Autonomous systems are reshaping defence strategies and our approach to global security challenges.”