The European Union’s military spending is projected to reach a record high of 381 billion euros in 2025, according to the European Defence Agency. This represents a 10% increase from the previous year, driven by the need to bolster defenses against potential threats from Russia. The rise in spending comes as European members of the North Atlantic Treaty Organization (NATO) have committed to significantly increase their defense budgets, following pressure from US President Donald Trump.

European countries have sharply increased their defense spending since Russia’s invasion of Ukraine in 2022. The European Defence Agency noted that approximately 130 billion euros of the total spending will be allocated to investments such as new weaponry. Additionally, a 150-billion-euro EU loan scheme aimed at supporting member states in ramping up their defense spending has been fully subscribed, with 19 out of 27 member states applying for funds. The scheme, known as the SAFE plan, enables member states to access cheaper loans backed by the EU’s central budget.

The increase in military spending is also driven by warnings from Western militaries and intelligence services that Moscow could be preparing to attack a NATO country within the next three to five years, should the war in Ukraine come to an end. The return of President Trump to power has further accelerated Europe’s efforts to boost its defense spending, with the US leader having long advocated for increased spending by NATO allies.

At a NATO summit in July, President Trump extracted a commitment from allies to allocate 5% of their GDP to security-related spending, comprising 3.5% for core defense spending and 1.5% for broader areas such as infrastructure and cybersecurity. According to the European Defence Agency, meeting the new NATO target of 3.5% of GDP would require even greater effort, resulting in a total annual spending of over 630 billion euros.

The significant increase in EU military spending underscores the bloc’s determination to enhance its defense capabilities and ensure the security of its member states. As the European Union continues to navigate the complex geopolitical landscape, its commitment to increased defense spending is likely to remain a key priority in the years to come.