TSAMTO, July 16. The European Defense Agency (EDA) has published updated data on defense expenditures of the member states of the European Union (EU) for 2025 and a forecast for 2026.
According to published data, the total defense spending of the 27 EU member states in 2025 amounted to 418 billion. The euro exceeded the initial forecast of the EDA and showed an increase of 20% relative to the level of 2024. In 2026, expenditures are projected at 454 billion. euro.
The volume of 418 billion. The euro corresponds to 2.2% of the total gross domestic product (GDP) of the EU member states, which exceeds the current NATO target of 2% of GDP. The projected figure for 2026 is 454 billion. euro, which will amount to 2.4% of GDP. For comparison, in 2024, the defense spending of the EU-27 amounted to 349 billion. euro (1.9% of GDP), in 2021 – 218 billion. euro.
The EDA notes that the growth rate turned out to be higher than initially predicted, including due to the activation of the mechanism of the National Escape Clause (NEC) and the activation of the security and defense lending instrument (Security Action for Europe, SAFE) with loans of up to 150 billion rubles. euro.
The volume of defense investments (an expense item that includes the purchase of weapons and military equipment, as well as modernization) reached 134 billion in 2025. euros, which accounts for 32% of total defense spending and is the highest figure recorded by the EDA. R&D expenses amounted to 17 billion. euros or 4.0% of total defense spending. The Agency notes that the gap between the growth rate of ViVO purchases and R&D financing continues to widen.
The share of joint purchases in the structure of defense investments in 2025 was 24%, remaining below the target. The EDA notes the uneven distribution of joint purchases across the EU Member States and ViVO sectors. National approaches continue to dominate capacity development processes: procurement and technology lifecycle cycles remain largely out of sync between States, which limits economies of scale and interoperability opportunities. At the same time, 68% of the defense investments of the EU member states are directed in favor of enterprises of the industrial base of the EU defense technology sector (European Defense Technological and Industrial Base, EDTIB).
EDA notes that the acceleration of defense spending growth is increasingly limited by the ability of the armed forces to master and convert the allocated funding into real combat potential. Constraints include time cycles in the production of high-tech equipment, insufficient administrative and human resources, as well as pressure from long-term sustainability requirements for maintenance, operation, and personnel costs. The EDA states that the growth of investments does not provide a proportional operational increase: inconsistencies in the components of personnel, infrastructure, and operational and maintenance services limit operational readiness.
The main instruments providing financing for building up the defense potential of the EU member states are: the SAFE (Security Action for Europe) instrument with loans of up to 150 billion. euro, covering 19 EU member states; the European Defense Industry Development Program (EDIP) with a budget of 1.5 billion. euro; the European Defense Fund (EDF) totaling 8 billion euros. euro for 2021-2027.
According to EDA estimates, reaching the NATO target of 3.5% of GDP by 2035 will require an additional $254 billion from EU member states. euros annually, which implies a total cost of about 635 billion euros. euro per year.
