European Union Member States are expected to spend over 2% of their GDP on defence this year, marking the first time they have met NATO’s current spending target since the European Defence Agency (EDA) began collecting this data in 2006.
According to a new report by the EDA, the EU’s 27 Member States collectively spent €343 billion on defence in 2024. This represents a 19% increase compared to 2023, accounting for 1.9% of their total GDP. Spending per active military personnel also reached a record €249,000—up from just €138,000 in 2014 when defence budgets were at their lowest.
Belgium, historically a laggard in defence investment, was among 16 Member States that increased their spending by over 10% between 2023 and 2024. The recently inaugurated De Wever government has committed to raising defence funding to 2% of GDP this year. If projections by the EDA prove accurate, defence spending across the EU will rise further to €381 billion in 2025, equivalent to 2.1% of GDP.
Of the total defence budgets, investments reached over €100 billion in 2024 and are forecast to grow to €130 billion in 2025. Much of this increase is attributed to large-scale purchases of military equipment, driven by the urgent need to enhance defence capabilities in light of Russia’s invasion of Ukraine. Research and development (R&D) spending also saw a significant rise, increasing by 20% in 2024.
Defence budgets are set to continue growing in the coming years. NATO has recently raised its target to 3.5% of GDP, a goal that, according to EDA Director André Denk, would require annual expenditure to exceed €630 billion. “Reaching this target demands greater efforts, but also calls for enhanced cooperation, economies of scale, and improved interoperability,” Denk stated.
