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The European Defence Agency (EDA) has published its annual Defence Data report for 2024-2025, detailing defence spending from all 27 EU Member States.  In 2024, defence expenditure by the 27 EU Member States reached an unprecedented €343 billion — a 19% rise on 2023 — bringing spending to 1.9% of GDP. 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.  

For the full document, please see here

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. While spending continues to grow and is forecast to climb further in 2025, it remains below the levels of military powers such as the United States — underlining the need for sustained investment and greater collaboration to maximise efficiency and ensure interoperability across the EU’s armed forces. 

Head of EDA, HRVP Kaja Kallas, said: "Europe is spending record amounts on defence to keep our people safe, and we will not stop there. This investment will be funnelled into everything from research and development to the joint procurement and production of essential defence components. The European Union 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. This must be the era of European defence."

EDA Chief Executive André Denk said: “It is encouraging to see EU Member States taking their defence spending to record levels. 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. Yet we must also cooperate closely, find economies of scale and increase interoperability. EDA stands more ready than ever to support Member States in this endeavour." 

   2025 Forecast:

• EU defence spending is projected to reach €381 billion in 2025 (vs €343 billion in 2024)
• Bloc’s spending is seen at 2.1% of GDP in 2025, exceeding the previous NATO 2% target for the first time since EDA records began
• Defence investment is set to reach close to €130 billion in 2025 (vs €106 billion in 2024)
• Research and Development (R&D) spending may increase to €17 billion in 2025 (vs €13 billion in 2024) 

2024 European Defence Spending – Key Findings:

• In 2024, 25 Member States increased their defence spending in real terms, one more than in 2023, while only two countries slightly decreased defence spending. Sixteen Member States raised their expenditure by more than 10%, compared to eleven in 2023.  
• In 2024, the total defence expenditure per active military personnel reached a record €249,000, up from €211,000 in 2023 and significantly more than the €138,000 spent in 2014. 
• In 2024, 24 Member States met the 20% benchmark on defence investment, up from 20 in 2023, an accelerating trend as countries direct an increasingly larger share of their expenditure to investments.
• Defence equipment procurement rose by 39% from 2023 to €88 billion in 2024, with spending in 2025 projected to exceed €100 billion. The upward trend is expected to continue as several Member States have announced further budget increases and signed major procurement deals in 2024.
• Equipment procurement represents more than 80% of defence investment. While short-term needs have led Member States to prioritise existing solutions, R&D investment has grown.
• A significant rise in R&D spending is essential to develop next-generation capabilities and reduce dependence on foreign markets. Defence cooperation offers benefits such as economies of scale, lower costs, improved interoperability, and reduced duplication.
• In 2024, defence R&D expenditure increased. The 20% rise in 2024 represents a notable acceleration compared to the 6% growth recorded in 2023. Defence R&D spending reached €13 billion in 2024.

In today’s edition: Germany slamming von der Leyen’s military ambitions, Italy considering a fiscal escape clause to boost defence spending, enlargement talks stalling in Copenhagen, Brussels shelving its safe countries list, and a petition pushing the EU to act on abortion access

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