EU Member States spent €418 billion on defence in 2025, a 20% increase from 2024, with spending projected to rise to €454 billion in 2026, according to the European Defence Agency's (EDA) Defence Data report released on 16 July 2026. Defence investment is forecast to account for 36% of total expenditure in 2026, while research and development spending is expected to grow from €17 billion to €20 billion. The report shows that 23 Member States met the 2% of GDP defence spending target in 2025, and collective defence investment exceeded the EDA benchmark of 32% of total expenditure. Defence equipment procurement reached €115 billion, with collaborative procurement making up 24% of that total. EDA Chief Executive André Denk said the investments, combined with EU-level instruments under the Defence Readiness 2030 initiative, should strengthen capabilities, expand industrial capacity, and enhance readiness. The report, based on data from all 27 Member States' defence ministries, supports evidence-based policy development and defence cooperation. The spending surge reflects a sustained push to bolster European defence amid geopolitical tensions, with Denk noting that on current trends spending could reach €547 billion by 2029. The data underscores a major shift in EU defence priorities, with implications for national budgets, defence industries, and NATO burden-sharing. For EU taxpayers, the increased spending may mean higher fiscal pressure, while defence contractors stand to benefit from rising procurement and R&D budgets. Collaborative procurement remains a challenge, as only 24% of equipment spending is joint, limiting economies of scale. The EDA's report provides a baseline for monitoring progress toward the EU's defence readiness goals.
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