EU defence spending hits 343 billion in 2024, targets 381 in 2025

Brussels -The European Defence Agency (EDA) has published its annual Defence Data Report for 2024-2025, detailing the defence spending of all 27 EU Member States. In 2024, defense spending by the 27 EU Member States reached an unprecedented EUR 343 billion, a 19 percent increase compared to 2023, accounting for 1.9 percent of GDP. The growth, primarily driven 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,” EDA said.

For the first time, defence investment exceeded EUR 100 billion, accounting for 31 percent of total spending, the highest share recorded by the EDA since data collection began. While spending continues to grow and is expected to rise 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,” EDA said in a statement. 

 The head of the EDA, Kaja Kallas, explains that “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 High Representative for Foreign and Security Policy also emphasises that “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.”

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

EDA also has significant growth forecasts for 2025. EU defence spending is expected to reach EUR 381 billion this year (up from EUR 343 billion in 2024). EU-wide expenditure is estimated at 2.1 percent of GDP in 2025, exceeding the previous NATO target of 2 percent for the first time since EDA records began.

Defence investments are expected to reach close to EUR 130 billion in 2025 (compared to EUR 106 billion in 2024), while research and development (R&D) spending could increase to EUR 17 billion in 2025 (compared to EUR 13 billion in 2024).