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EU Defence spending to hit €454 billion in 2026 as Europe accelerates rearmament

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EU Defence spending to hit €454 billion in 2026 as Europe accelerates rearmament
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EU Defence spending to hit €454 billion in 2026 as Europe accelerates rearmament

EU member states are on course to raise defence spending to €454 billion in 2026, up from €418 billion in 2025, as governments accelerate military investment in response to the deteriorating security environment and the need to strengthen Europe’s industrial and operational readiness.

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EU Defence expenditure is projected to rise to €454 billion in 2026. –
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  • Juan Carlos De la Torre
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  • Published on
    17 July 2026 at 07:15

The European Defence Agency (EDA) said in its latest Defence Data report , published on 16 July, that combined defence spending by the EU’s 27 member states reached €418 billion in 2025—a 20% year-on-year increase equivalent to 2.2% of the bloc’s GDP.Defence expenditure is projected to rise to €454 billion in 2026, or 2.4% of GDP, underscoring Europe’s unprecedented rearmament drive.

According to the Defence Data 2025–2026 report, defence budgets haveincreased by 47% between 2022 and 2025, highlighting a rapid shift in European security policy following Russia’s invasion of Ukraine and growing concerns over long-term strategic competition. The EDA notes that member states are increasingly front-loading defence expenditure to improve military readiness and expand industrial capacity.

The report also shows that 23 of the EU’s 27 member states met or exceeded the 2% of GDP defence spending benchmark in 2025—ten more than the previous year. Looking ahead, several countries are expected to move well beyond that threshold, with Estonia and Lithuania projected to spend more than 5% of GDP on defence in 2026.

Investment continues to drive the surge

In 2025, 32.2% of total defence expenditure was allocated to investment, comfortably above the EDA’s benchmark of 20%. Procurement spending rose to €115 billion, while research and development also continued to expand, reflecting efforts to modernise Europe’s armed forces and reinforce the continent’s defence technological and industrial base.

Despite the unprecedented increase in spending,the EDA warns that structural challenges remain. Joint procurement still falls short of European targets, while industrial production capacity, administrative procedures and workforce shortages risk slowing the delivery of new capabilities. The agency argues that sustaining the current pace of investment will require deeper cooperation between member states and continued expansion of Europe’s defence industry.

Presenting the report, EDA Chief Executive André Denk said current trends could see EU defence spending rise to €547 billion by 2029, provided governments maintain their commitments.Combined with the EU’s Defence Readiness 2030 initiatives, he argued, these investments should significantly strengthen Europe’s military capabilities, industrial resilience and overall preparedness

The European Defence Agency (EDA) said in its latest Defence Data report , published on 16 July, that combined defence spending by the EU’s 27 member states reached €418 billion in 2025—a 20% year-on-year increase equivalent to 2.2% of the bloc’s GDP.Defence expenditure is projected to rise to €454 billion in 2026, or 2.4% of GDP, underscoring Europe’s unprecedented rearmament drive.

According to the Defence Data 2025–2026 report, defence budgets haveincreased by 47% between 2022 and 2025, highlighting a rapid shift in European security policy following Russia’s invasion of Ukraine and growing concerns over long-term strategic competition. The EDA notes that member states are increasingly front-loading defence expenditure to improve military readiness and expand industrial capacity.

The report also shows that 23 of the EU’s 27 member states met or exceeded the 2% of GDP defence spending benchmark in 2025—ten more than the previous year. Looking ahead, several countries are expected to move well beyond that threshold, with Estonia and Lithuania projected to spend more than 5% of GDP on defence in 2026.

Investment continues to drive the surge

In 2025, 32.2% of total defence expenditure was allocated to investment, comfortably above the EDA’s benchmark of 20%. Procurement spending rose to €115 billion, while research and development also continued to expand, reflecting efforts to modernise Europe’s armed forces and reinforce the continent’s defence technological and industrial base.

Despite the unprecedented increase in spending,the EDA warns that structural challenges remain. Joint procurement still falls short of European targets, while industrial production capacity, administrative procedures and workforce shortages risk slowing the delivery of new capabilities. The agency argues that sustaining the current pace of investment will require deeper cooperation between member states and continued expansion of Europe’s defence industry.

Presenting the report, EDA Chief Executive André Denk said current trends could see EU defence spending rise to €547 billion by 2029, provided governments maintain their commitments.Combined with the EU’s Defence Readiness 2030 initiatives, he argued, these investments should significantly strengthen Europe’s military capabilities, industrial resilience and overall preparedness

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