EU Defense Spending Soars but Military Gains Still Lag
EU defense spending hit €418 billion in 2025, but fragmented procurement, duplicate programs and limited joint projects are weakening the military payoff.
EU countries have sharply increased their defense budgets, but the additional spending has yet to produce a comparable rise in military capabilities, according to a report by the European Defence Agency.
Combined military expenditure across the bloc’s 27 member states reached €418 billion in 2025, up 20% from the previous year. The agency expects the figure to climb to €454 billion in 2026 and, if the current trend continues, reach as much as €547 billion by 2029.
The EDA identified the lack of a coordinated approach as one of the main obstacles. Member states continue to purchase different platforms, duplicate development programs and prioritize national projects, reducing the military impact of the extra funding.
A large share of the new money is being spent on urgently acquiring equipment that is already available and needed to address immediate shortages. Research, long-term programs and the joint development of advanced weapons receive significantly less funding.
In 2025, EU countries allocated €115 billion to weapons procurement but only €17 billion to defense research and development. Joint purchases accounted for just 24% of total military equipment spending, while most investment remained tied to separate national programs.