EU Defence Spending hits €418 BN in 2025, set for €454 BN in 2026
Brussels, 16 July 2026. The European Defence Agency (EDA) today published its annual Defence Data report for 2025-2026, detailing defence spending by all 27 EU Member States.
In 2025, defence spending by the 27 Member States reached €418 billion, representing a 20% increase since 2024 and bringing spending to 2.2% of GDP. This increase reflects Member States’ efforts to strengthen Europe’s defence capabilities in response to Russia’s war of aggression against Ukraine and the evolving security environment. In 2026, defence spending is projected to increase further to €454 billion, equivalent to 2.4% of GDP.
Spending is accelerating faster than previously projected, with a cumulative 47% rise between 2022 and 2025, and the pace suggests that Member States are frontloading to increase readiness.
“Member States are making unprecedented investments in defence, with spending projected to reach up to €547 billion by 2029 on current trends. 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,” said EDA Chief Executive André Denk.
2026 Forecast
• EU defence spending is projected to reach €454 billion in 2026 (compared to €418 billion in 2025).
• Spending is seen at 2.4% of GDP in 2026.
• In 2026, defence investment is expected to account for 36% of defence spending, highlighting the continued emphasis in this area.
• Defence Research & Development (R&D) spending is expected to reach €20 billion in 2026 (compared to €17 billion in 2025).
2025 Data – Key Findings
• In 2025, 23 Member States increased spending to the level of at least 2% of GDP, 10 more than in 2024.
• Fifteen Member States increased their defence expenditure by more than 10% between 2024 and 2025.
• In 2025, spending and investment per soldier continued to rise, reaching €297,000, compared with €253,000 in 2024. This means that the quality of equipment and the armed forces’ preparedness are increasing.
• In 2025, 23 Member States met the 20% benchmark on collective defence investment. Collectively, EU Member States spent over 32% of their defence expenditure on investment, surpassing the benchmark.
• Defence equipment procurement rose by 26% to €115 billion in 2025 compared to €88 billion in 2024.
• Collaborative defence expenditure, combining investments involving EU partners and/or third parties, accounted for 24% of defence equipment procurement in 2025.
• In 2025, defence R&D expenditure reached €17 billion.
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The European Defence Agency reported that EU defense spending reached €418 billion in 2025, reflecting a 20% increase from 2024. Projected spending for 2026 is €454 billion, or 2.4% of GDP, with 23 Member States meeting the 2% GDP benchmark. The report highlights significant investments in defense capabilities in response to security challenges, including a 26% rise in defense equipment procurement.
- EU defense spending reached €418 billion in 2025, a 20% increase from 2024.
- Projected defense spending for 2026 is €454 billion, or 2.4% of GDP.
- 23 Member States increased spending to at least 2% of GDP in 2025.
- Defense equipment procurement rose by 26% to €115 billion in 2025.
- Defense R&D expenditure reached €17 billion in 2025.