In 2025, the EU will spend €381 billion ($443 billion) on defence. This is a 10% increase from last year and the most the bloc has ever spent on defence.
The European Union is likely to set a record for defence spending this year, with €381 billion set aside for 2025. The number is a big jump from €343 billion in 2024. This is because the union is building up its military faster because of rising geopolitical tensions and pressure from Washington.
The European Defence Agency (EDA) says that around €130 billion of this year's budget is set aside for buying new weapons. The rise follows a pattern that started when Russia fully invaded Ukraine in 2022, when European countries quickly built up their military might.
The sharp rise comes as NATO allies agreed in July to commit 5% of their GDPs to security-related expenditures, under pressure from returning US President Donald Trump. Of this, 3.5% will be directed to core defence spending, and 1.5% toward broader areas such as infrastructure and cyber security.
EDA President Andre Denk warned that meeting NATO’s new target would require over €630 billion annually, far above even this year’s record levels.
To ease the transition, the EU has already launched a €150-billion Security Action for Europe (SAFE) loan programme to help member states finance their defence build-up. The scheme has been fully subscribed, with 19 out of 27 countries applying for funds.
The €381 billion captures only what countries themselves are directly spending—not what the EU lends for joint defence initiatives. The SAFE is a EU-level financing mechanism—not part of national budgets. Under the Readiness 2030 plan, SAFE offers up to €150 billion in loans to member states. These funds are intended to boost joint procurement and defence investment, but they are distinct from national defence expenditure figures and thus not included in the €381 billion.
