EU Defence Spending Hits Record €381 Billion in 2025 Amid Russia Concerns

The European Union is set to reach a new record in military spending with €381 billion forecasted for 2025, reflecting a 10% increase from the previous year as member states boost defense budgets to counter Russian aggression. This surge in spending follows Russia's invasion of Ukraine in 2022 and has been accelerated by the return of US President Donald Trump, who pressured NATO allies to commit to spending 5% of their GDP on security, including 3.5% on core defense. The European Defence Agency (EDA) highlighted that nearly €130 billion of the 2025 budget will be allocated to investments such as new weaponry, with defense investments comprising a significant portion of overall expenditures. In 2024, EU defense spending reached €343 billion, surpassing projections and exceeding China’s and Russia’s military budgets combined, with only the United States spending more globally. Most EU countries are increasing their defense budgets, with leaders like Germany, Poland, and Spain significantly raising expenditures, while only Portugal and Ireland have reduced theirs. The continued rise in European military spending is supported by mechanisms such as the €150 billion EU SAFE loan scheme, which provides member states with cheaper loans to help ramp up defense capabilities.