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.