The 27-member bloc’s defence spending is predicted to hit EUR381 billion in 2025. 

The European Defence Agency (EDA) released its annual Defence Data report, revealing that EU-wide defence spending rose by 19% between 2023 and 2024, reaching EUR343 billion. 

Published on 2 September, this increase means that EU-wide defence spending averaged 1.9% of GDP in 2024, just shy of the original 2% NATO target. 

Going forward, the EDA predicts that total defence spending could rise from EUR343 billion in 2024 to EUR381 billion in 2025, bringing EU spending to 2.1% of GDP on average.  

Under this growth, defence investment topped EUR100 billion for the first time in 2024 and is expected to rise to EUR130 billion in 2025. 

Approximately 80% of overall defence investment in 2024 can be attributed to equipment procurement, which the EDA notes is a 39% increase compared with the previous year, totalling EUR88 billion. In 2025, the EDA says it is “likely to exceed EUR100 billion”. 

Additionally, research and development spending is also seeing a significant increase, rising 20% between 2023 and 2024 – to EUR13 billion – and is predicted to reach EUR17 billion in 2025. 

These rises come as part of a broader trend in Europe, where countries are seeking to bolster their industrial capacity and replenish stockpiles depleted to support Ukraine.  

They also demonstrate the initiatives taken by EU member states – and the organisation itself – to reduce Europe’s reliance on the US, following a shift in US strategy under President Donald Trump. 

It is worth noting that the EDA predictions for 2025 could rise significantly, following the European Commission’s Readiness 2030 initiative – alongside the ReArm Europe plan – which seeks to create EUR800 billion in fiscal headroom.  

As part of this, DSEI Gateway recently reported that 18 of the 27 EU member states have signed up to claim a share of the EUR150 billion Security Action for Europe (SAFE) fund, set out by the European Commission.