The bloc's defence spending should total €454 billion in 2026 or 2.4% of GDP, the agency said
Defence spending across the EU rose 20% year-on-year in 2025 to reach €418 billion, the European Defence Agency (EDA) said on Thursday, stressing that most of this amount is still spent without efficient collaboration among member states.
According to the EDA, the steep rise can be partially attributed to the activation by 18 member states of the national escape clause to finance defence projects and SAFE loans. The €150 billion defence financing scheme offers EU countries favourable loans for defence procurement. Nineteen countries have asked to tap into the scheme, and eight have already signed the final loan agreement.
However, the EDA flagged that the pace of deliveries from industry has not matched the increased spending, limiting armed forces’ operational readiness.
From the €418 billion spent in 2025, 68% went to the European defence industry, as the latest data from the 27 defence ministries shows.
