How much do NATO members spend on defence as threat perceptions rise?
Despite Trump’s appeal for NATO members to spend more of their budget on defence, the feasibility of any further increases in the EU remains uncertain.
With Russia’s invasion of Ukraine in 2022 and Donald Trump’s destabilisation of the Atlantic alliance, the EU has been forced to re-evaluate its approach to military defence and spending.
The United States is the top NATO member spender, with around €895.6 billion in its 2024 defence budget.
Over the last year, European defence spending jumped by 11.7% in real terms to reach around €423.3 billion ($457 billion), marking the tenth consecutive year of growth.
Between 2014 and 2024, regional spending in Europe was overall more than 50% higher.
Germany has the world’s fourth-largest defence budget, which saw a 23.2% increase in real terms between 2023 and 2024.
More recently, the country passed a bill that will allow for a large increase in military expenditure.
Poland became the fifteenth-largest defence spender globally, up from 20th place in 2022.
The defence spending of the 23 EU countries that are NATO members amounted to almost 2% of their combined GDP in 2024 and is projected to reach 2.04% in 2025.
Trump’s re-election is intensifying the pressure on Europe’s NATO members to raise their defence spending.
The US President wants all NATO nations to increase defence spending to 5% of their GDP.
This idea was backed by EU foreign affairs chief Kaja Kallas in January.
French President Emmanuel Macron has also stated that he aims to raise defence spending up to 3.5% of the country’s GDP, a hike that would require an additional €30bn annually.
If European NATO members maintained the 2024 rate of growth, then defence spending would reach an average of 3% of GDP within five years and 5% within ten.
However, maintaining the elevated 2024 rate of growth is likely unfeasible for most countries.
For instance, Spain has refused to give in to Trump’s request.
ADVERTISEMENTThe Spanish government aims to increase military spending to 2% by 2029, more than doubling the €17.523 million invested in defense in 2024, with a target of reaching €36.560 million in five years.
“To ramp up defence capabilities at acceptable cost, Europe must pool procurement,” said Bruegel director Jeromin Zettelmeyer.
Video editor • Mert Can Yilmaz
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