EU Military Spending Soars to Record €381 Billion in 2025 amid Intensifying Geopolitical Pressures
The European Union is set to reach its highest-ever military expenditure in 2025, with defense budgets climbing to an unprecedented €381 billion (about $443 billion). This marks a nearly 10 percent increase from the previous year’s €343 billion and pushes spending to roughly 2.1 percent of the bloc’s GDP.
According to the European Defence Agency (EDA), almost €130 billion of the 2025 budget will be dedicated to investments in new weaponry, equipment, research, and development. The sharp rise builds on last year’s surge, when spending on armaments alone increased by nearly 40 percent, while defense R&D grew by around 20 percent.
A major driver of this buildup is the SAFE loan programme, a €150 billion initiative backed by the EU budget to provide member states with cheaper loans for defense. All available funds have now been subscribed, with 19 of 27 EU member states applying for allocations. The scheme is designed to boost Europe’s arms production capacity and reduce dependence on external suppliers, while also allowing some states to direct resources toward supporting Ukraine.
The record spending comes as Europe faces mounting pressure from both security threats and political allies. Western intelligence services have repeatedly warned that Russia could pose a direct threat to NATO within the next five years if the war in Ukraine ends. Meanwhile, the return of Donald Trump to the U.S. presidency has renewed American pressure on Europe to carry a bigger share of the NATO burden.
At a NATO summit earlier this year, allies committed to raising total security-related expenditures to 5 percent of GDP by 2035, with 3.5 percent dedicated to core defense and 1.5 percent to broader areas such as infrastructure and cybersecurity. EDA head André Denk noted that meeting just the 3.5 percent requirement would demand EU countries collectively spend over €630 billion annually, underscoring the enormous fiscal challenge ahead.
Beyond NATO obligations, Brussels is pursuing its own ambitious rearmament strategy. The “Readiness 2030” plan aims to mobilize up to €800 billion in additional resources over the coming years, through budget flexibility, expanded loan programs, and stronger private-sector investment in defense industries.
However, analysts caution that such steep increases could come with trade-offs. Committing hundreds of billions more to defense risks straining budgets for social welfare, healthcare, and climate initiatives, potentially sparking political debates within member states.
For now, EU leaders remain clear in their stance. “Europe is spending record amounts on defense to keep our people safe, and we will not stop there,” said EU foreign policy chief Kaja Kallas, signaling that the continent’s military buildup is only at the beginning of a new era.
EU Military Spending Soars to Record €381 Billion in 2025 amid Intensifying Geopolitical Pressures
The European Union is set to reach its highest-ever military expenditure in 2025, with defense budgets climbing to an unprecedented €381 billion (about $443 billion). This marks a nearly 10 percent increase from the previous year’s €343 billion and pushes spending to roughly 2.1 percent of the bloc’s GDP.
According to the European Defence Agency (EDA), almost €130 billion of the 2025 budget will be dedicated to investments in new weaponry, equipment, research, and development. The sharp rise builds on last year’s surge, when spending on armaments alone increased by nearly 40 percent, while defense R&D grew by around 20 percent.
A major driver of this buildup is the SAFE loan programme, a €150 billion initiative backed by the EU budget to provide member states with cheaper loans for defense. All available funds have now been subscribed, with 19 of 27 EU member states applying for allocations. The scheme is designed to boost Europe’s arms production capacity and reduce dependence on external suppliers, while also allowing some states to direct resources toward supporting Ukraine.
The record spending comes as Europe faces mounting pressure from both security threats and political allies. Western intelligence services have repeatedly warned that Russia could pose a direct threat to NATO within the next five years if the war in Ukraine ends. Meanwhile, the return of Donald Trump to the U.S. presidency has renewed American pressure on Europe to carry a bigger share of the NATO burden.
At a NATO summit earlier this year, allies committed to raising total security-related expenditures to 5 percent of GDP by 2035, with 3.5 percent dedicated to core defense and 1.5 percent to broader areas such as infrastructure and cybersecurity. EDA head André Denk noted that meeting just the 3.5 percent requirement would demand EU countries collectively spend over €630 billion annually, underscoring the enormous fiscal challenge ahead.
Beyond NATO obligations, Brussels is pursuing its own ambitious rearmament strategy. The “Readiness 2030” plan aims to mobilize up to €800 billion in additional resources over the coming years, through budget flexibility, expanded loan programs, and stronger private-sector investment in defense industries.
However, analysts caution that such steep increases could come with trade-offs. Committing hundreds of billions more to defense risks straining budgets for social welfare, healthcare, and climate initiatives, potentially sparking political debates within member states.
For now, EU leaders remain clear in their stance. “Europe is spending record amounts on defense to keep our people safe, and we will not stop there,” said EU foreign policy chief Kaja Kallas, signaling that the continent’s military buildup is only at the beginning of a new era.
