Defence spending by the EU’s 27 Member States reached €418 billion in 2025, a 20% increase compared to 2024, according to the European Defence Agency’s (EDA) latest Defence Data report released on 16 July 2026. Spending is projected to rise further to €454 billion in 2026, reflecting Member States’ continued efforts to strengthen Europe’s defence capabilities and readiness.
Defence spending represented 2.2% of EU GDP in 2025 and is expected to reach 2.4% in 2026. Defence investment is forecast to account for 36% of total defence expenditure in 2026, while spending on defence research and development is expected to increase from €17 billion in 2025 to €20 billion.
The report also shows that 23 Member States spent at least 2% of GDP on defence in 2025, while collective defence investment exceeded the EDA benchmark, accounting for more than 32% of total defence expenditure. Defence equipment procurement rose to €115 billion, and collaborative procurement represented 24% of total equipment spending.
EDA Chief Executive André Denk said: “EU Member States are making unprecedented investments in defence, with spending projected to reach up to €547 billion by 2029 on current trends. Combined with the instruments mobilised at EU level under the Defence Readiness 2030 initiative, these investments should strengthen Europe's defence capabilities, expand industrial capacity, and enhance readiness and resilience."
The EDA Defence Data 2025–2026 report provides a comprehensive overview of defence expenditure and investment trends across the EU. Based on data collected annually from the Ministries of Defence of all 27 Member States, it supports evidence-based policy development and defence cooperation at European level.
Read the full report: Defence Data 2025-2026