EU states on track to hit NATO defence spending target

EU member states are set to spend more than 2 per cent of their combined economic output on defence this year, according to forecasts from the European Defence Agency (EDA). It would mark the first time the bloc has met NATO’s long-standing target since the agency began collecting data in 2006.

Defence spending rose sharply in 2024, reaching 343 billion euros, or 1.9 per cent of GDP, up 19 per cent from the previous year. This year, the figure is expected to climb to 381 billion euros or 2.1 per cent of GDP.

The surge is being driven by large-scale procurement of new equipment, which jumped by 39 per cent in 2024 to 88 billion euros, alongside a 20 per cent increase in defence research and development. Overall investment in defence topped 100 billion euros for the first time last year and is forecast to reach 130 billion euros in 2025.

Belgium, long criticised for underspending, was among 16 countries where budgets rose by more than 10 per cent between 2023 and 2024. The new De Wever government has pledged to hit the 2 per cent target this year.

“Greater cooperation, economies of scale and improved interoperability will be essential”

EDA director André Denk warned that spending will need to rise further to meet NATO’s new benchmark of 3.5 per cent of GDP, implying annual outlays of more than 630 billion euros. “Greater cooperation, economies of scale and improved interoperability will be essential,” he said.

The increase comes against the backdrop of Russia’s full-scale invasion of Ukraine, which has pushed European governments to accelerate efforts to strengthen their military capabilities.

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