The world is never the same after a war. Russia’s war in Ukraine has also changed everything in Europe. The continent that has enjoyed a peace dividend for seven decades by making the borders irrelevant is suddenly waking up to its pressing defense needs.
Facing the twin challenges of a resurgent Russia and a retreating US interest in European security, the EU is ramping up its defense spending at an unprecedented pace.
Just a decade back, in 2014, the EU’s 28 countries (including the UK) were collectively spending less on defense than China.
This trend remained more or less the same till 2022, when Russia’s full-scale invasion of Ukraine broke Europe’s slumber and forced it to increase its defense spending dramatically.
In 2024, the EU’s 27 countries spent 343 billion euros (nearly USD 402 billion) on defense, exceeding projections and setting a new record, according to a new report by the European Defense Agency (EDA).
EU defence spending hits €343 bn in 2024, set for €381 bn in 2025
The @EUDefenceAgency (EDA) has published its annual #EUDefenceData report for 2024-2025, detailing defence spending from all 27 EU Member States. #EUdefence #StrongerTogether
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— European Defence Agency (@EUDefenceAgency) September 2, 2025
This represents a 19% increase over the previous year. This also marked the tenth consecutive year of defense spending hike for the EU. Furthermore, the trend will continue in 2025 as well, when the EU is expected to spend 381 billion euros (USD 446 billion) on defense.
Notably, in 2014, the EU spent 189 billion euros on defense, and in 2025, the EU is expected to spend USD 381 billion euros, meaning the EU defense budget is expected to more than double in 11 years.
EU Surpasses China In Defense Spending
Notably, the EU’s total defense spending in 2024 exceeds China’s by about one-and-a-half times, and is nearly three times as high as Russia’s military budget.
According to SIPRI, in 2024, China spent USD 314 billion on defense, while Russia spent USD 149 billion. Currently, only the US spends more on defense than the EU.
This is a big turnaround for the EU, as only a decade back in 2014, the EU was spending less on defense than China.
In 2014, while the EU (including the UK) spent USD 215 billion on defense, China spent USD 216 billion. Even in 2021, the EU defense budget (USD 310 billion) was only slightly higher than China’s (USD 293 billion).
Even in terms of defense budget as a percentage of GDP, the EU has surpassed China.
In 2024, China spent 1.7% of its GDP on defense, whereas the EU spent 1.9% of its GDP on defense. In 2023, the EU spent only 1.6% of its GDP on defense.
In 2025, the EU is expected to spend nearly 2.1% of its GDP on defense, meeting a crucial NATO guideline to spend at least 2% of its GDP on defense.
Which EU Country Is Spending The Highest?
Though the EU is collectively spending 1.9% of its GDP on defense, there is considerable variation in defense spending across the EU countries.
For instance, Poland, which is close to Russia and shares a border with Ukraine, spent nearly 3.8% of its GDP on defense, the highest among all EU nations.
Similarly, the three Baltic states, Estonia, Latvia, and Lithuania, all spent more than 3% of their GDP on defense.
Furthermore, several Eastern European countries, such as Finland, Romania, Hungary, the Czech Republic, and Sweden, spent more than 2% of their GDP on defense.
Germany and France also spent more than 2% of their GDP on defense.
On the other hand, countries like Ireland and Malta spent less than 0.5% of their GDP on defense. Ireland and Malta are also the only two EU countries that spent less on defense in 2024 than in 2023.
Notably, the US has been spending more than 3% of its GDP on defense consistently for the last decade. In 2024, US defense expenditure amounted to €845 billion (USD 983 billion) or 3.1% of GDP, nearly triple the EU countries’ aggregated expenditure of €343 billion.
More than 10 EU countries witnessed an over 10% increase in their 2024 defense budget compared to 2023. Spain, Germany, the Netherlands, Croatia, Sweden, Austria, Poland, the Czech Republic, Latvia, Estonia, Lithuania, and Romania all saw an over 10% increase in their defense budget in 2024. This underscores how the EU member states are mobilizing more and more resources for boosting their defense capabilities.
The Broad Trends In EU Defense Spending
Defense spending is increasing even when the number of troops remains stagnant: The EU countries have significantly increased their spending on defense, both in terms of per-soldier expenditure and investment.
In 2024, the total defense expenditure per active military personnel reached a record €249,000 (USD 289,500), up from €211,000 (USD 245,360) in 2023 and significantly more than the €138,000 (USD 160,470) spent in 2014.
Similarly, defense investment per soldier also peaked in 2024. The societal share of defense spending, measured as total expenditure per capita, has also seen a marked increase over the past decade.
Per capita defense spending rose from €642 (USD 746.5) in 2023 to €764 (USD 888.4) in 2024 – up from €426 (USD 495) spent in 2014.
The steep increase in both total spending and investment per soldier is driven by the continuing growth in the defence budgets of the EU countries, while the number of
active personnel remain broadly stable.
Compared to 2023, the total number of EU military personnel grew by only 1% in 2024, compared to the 19% increase in total defense expenditure.
The high level of defense spending in EU countries is primarily driven by countries’ purchasing of new equipment and increased spending on research and development programs. Both combined are collectively referred to as “defense investments” in EU parlance, as opposed to the money spent on troop salaries or upkeep of facilities.
The EU defense investment reached a record-breaking level in 2024, exceeding the €100 billion threshold for the first time, reaching €106 billion (USD 123 billion).
It accounted for 31% of total defense expenditure, the largest share recorded by the European Defense Agency (EDA) since data collection began. The trend is projected to continue in 2025, bringing defense investment spending closer to €130 billion (USD 120 billion).
Defense equipment procurement expenditure reached €88 billion (USD 102 billion) in 2024, growing by a record-breaking 39% compared to 2023. EDA assesses that the increase in defense procurement spending will likely continue in the coming years as several EU countries have announced additional budgetary increases and signed major procurement deals in 2024, which will further bolster spending on new equipment.
Similarly, Defense Research and Development (R&D) spending increased by 20% and reached €13 billion (USD 15 billion) in 2024, marking a sharp increase in growth.
EU Commands More MBTs But Fewer Aircraft
The EDA defense spending report also brings forth subtle differences between the EU’s military equipment and that of the US.
For instance, the EU commands more Main Battle Tanks (MBTs) and Infantry Fighting Vehicles (IFVs) than the US. However, the EU trails the US in terms of fighter aircraft, as well as special-purpose aircraft, such as tankers and Heavy Transport Aircraft (HTA).
The EU commands only 1,362 fighter aircraft, as compared to the US’s 2,854, meaning the US alone commands more than twice the number of fighter aircraft as all the EU countries together.
Similarly, while the EU has only 247 tankers and HTA, the US commands nearly six times the EU figure. The US has 1,210 tankers and HTA.
This marked difference in military equipment underscores Europe’s focus on land war (a legacy of two World Wars fought on the continent), compared to the US focus on projecting power globally.
The EDA report highlights that the EU has devoted substantial resources to defense since 2014, when Russia annexed the Crimean peninsula. This trend got a further boost in 2022 when Russia launched its full-scale invasion of Ukraine.
In 2014, the EU countries were spending only 1.1% of their GDP on defense. In 2024, this figure reached 1.9% of GDP, and is expected to reach 2.1% of GDP by 2025.
However, at the NATO summit in The Hague in June 2025, allies had agreed to invest 5% of GDP annually on both core defense requirements and defense and security-related
spending by 2035.
The cumulative EU defense budget is still a long way from that target.
- Sumit Ahlawat has over a decade of experience in news media. He has worked with Press Trust of India, Times Now, Zee News, Economic Times, and Microsoft News. He holds a Master’s Degree in International Media and Modern History from the University of Sheffield, UK.
- He can be reached at ahlawat.sumit85 (at) gmail.com
