May 2, 2025: Global military spending surged to a record $2.72 trillion in 2024, according to the Stockholm International Peace Research Institute (SIPRI), driven primarily by a dramatic rise in European defense budgets.
Europe Leads Global Military Spending Boom
Europe led the charge, increasing its defense expenditure by 17% to $693 billion, the sharpest annual jump since the end of the Cold War. The rise reflects mounting security anxieties across the continent amid diminishing U.S. security commitments and escalating global tensions.
“Europe has entered a period of high and rising military spending that is likely to persist,” said Lorenzo Scarazzato, researcher at SIPRI.
All European countries, except Malta, raised their defense budgets in 2024. Key highlights include:
- Germany: +28% to $88.5 billion — 4th-largest globally.
- Ukraine: $64.7 billion (34% of GDP) — highest military burden globally.
- Poland: +31% to $38 billion, reaching 4.2% of GDP.
- Sweden: +34% to $12 billion, hitting NATO’s 2% GDP target.
- France: +6.1% to $64.7 billion.
- UK: +2.8% to $81.8 billion.
NATO Spending Hits $1.5 Trillion Amid U.S. Pressure
All 32 NATO members increased military spending in 2024, with 18 meeting or exceeding the 2% GDP benchmark, bringing total NATO expenditure to $1.5 trillion—55% of global military outlays.
The rise follows firm pressure from the U.S., where Defense Secretary Pete Hegseth warned that Washington would no longer prioritize European security, pushing allies to take on more responsibility, particularly in aiding Ukraine.
President Donald Trump, in his second term, has further escalated demands, urging NATO nations to hike spending to 5% of GDP, a dramatic leap from the current 2% benchmark.
“Europe recognizes the need to stand on its own and not rely as heavily on the United States,” said Seth Krummrich, retired U.S. colonel and VP at Global Guardian.
EU Steps Up Defense Integration
The European Union is responding with robust plans for defense autonomy:
- The Strategic Agenda 2024–2029 prioritizes defense.
- The White Paper for European Defence – Readiness 2030 outlines gaps and procurement plans.
- European Commission President Ursula von der Leyen proposed an €800 billion ($905B) EU defense boost, including a €150 billion ($170B) loan facility for joint military investment.
Fiscal Warnings Amid Rising Debt
However, the ramp-up in military budgets poses challenges for EU countries already grappling with high deficits. According to ING, rising defense bills come at a tough time, with nations like France, Belgium, and Italy already under EU deficit procedures.
“Meeting higher NATO targets will be difficult, especially for countries already struggling to meet the current 2% goal,” ING cautioned.