EU defence spending jumps 20% to €418 billion in 2025, with budgets projected to approach €550 billion by 2029

By Lukasz Prus (Defence Industry Europe)

EU |
EU defence spending jumps 20% to €418 billion in 2025, with budgets projected to approach €550 billion by 2029

Photo: DSEI.

Defence spending by the European Union’s 27 member states rose 20% to €418 billion in 2025, according to the European Defence Agency. The total is projected to reach €454 billion in 2026 as governments continue to expand military capabilities, industrial capacity and readiness.

Combined expenditure represented 2.2% of EU gross domestic product in 2025. The share is expected to rise to 2.4% in 2026.

The figures show that 23 member states spent at least 2% of GDP on defence in 2025. Collective defence investment also exceeded the EDA benchmark, accounting for more than 32% of total expenditure.

Equipment procurement reached €115 billion during the year. Collaborative procurement represented 24% of total equipment spending, indicating that most purchases were still made through national programmes.

Defence investment is forecast to account for 36% of total expenditure in 2026. Spending on defence research and development is expected to increase from €17 billion in 2025 to €20 billion.

“EU Member States are making unprecedented investments in defence, with spending projected to reach up to €547 billion by 2029 on current trends,” EDA Chief Executive André Denk said. “Combined with the instruments mobilised at EU level under the Defence Readiness 2030 initiative, these investments should strengthen Europe’s defence capabilities, expand industrial capacity, and enhance readiness and resilience.”

The spending increase reflects continued efforts by EU governments to strengthen Europe’s defence position. It also places greater emphasis on equipment investment, research and the capacity of the European defence industry.

The EDA Defence Data 2025–2026 report provides an overview of expenditure and investment trends across the bloc. It is based on information collected annually from the defence ministries of all 27 EU member states.

The agency uses the data to support defence policy development and cooperation at European level. The report also provides a common basis for assessing how national spending decisions contribute to broader European capability objectives.

 

Read the full report: European Defence Agency (EDA).