Defence expenditure across the European Union surged to unprecedented levels in 2024, according to the European Defence Agency’s (EDA) newly released annual Defence Data report.

The 27 EU Member States collectively spent €343 billion on defence last year, a 19% increase compared with 2023, bringing spending to 1.9% of the bloc’s total GDP.

The sharp rise was fuelled primarily by record investments in equipment procurement and research and development. For the first time, defence investment surpassed the €100 billion mark, accounting for 31% of all military expenditure — the highest share recorded since EDA began collecting data.

While EU defence budgets are steadily expanding and expected to continue rising in 2025, they still fall short of levels seen in global military powers such as the United States. The report emphasised that sustained investment, coupled with closer cooperation, will be necessary to maximise efficiency and strengthen interoperability within Europe’s armed forces.

High Representative and EDA Head Kaja Kallas hailed the record spending as a milestone for European security.

“Europe is spending record amounts on defence to keep our people safe, and we will not stop there,” she said. “This investment will be funnelled into everything from research and development to the joint procurement and production of essential defence components. The European Union is pulling every financial and political lever we have to support our Member States and European companies in this effort. Defence today is not a nice-to-have but fundamental for the protection of our citizens. This must be the era of European defence.”

EDA Chief Executive André Denk also welcomed the spending surge but cautioned that further efforts would be required to meet new NATO benchmarks.

“Meeting the new NATO target of 3.5% of GDP will require even more effort, spending a total of more than €630 billion a year,” Denk explained. “Yet we must also cooperate closely, find economies of scale and increase interoperability. EDA stands more ready than ever to support Member States in this endeavour.”

The report noted that spending is projected to rise again in 2025 as Member States step up procurement programmes, research investments, and joint initiatives under the EU’s defence framework.

Analysts suggest the growing budgets reflect Europe’s determination to respond to a shifting security environment, strengthen its defence industrial base, and reduce reliance on external suppliers amid ongoing global instability.

The EDA underlined that only through sustained spending, deepened cooperation, and collective procurement efforts will the EU be able to close the gap with other military powers while ensuring security for its citizens. (ILKHA)