This year, the total expenditure for defense by the 27 member countries of the European Union (EU) is expected to reach 381 billion euros (about 620 trillion won), marking a record high. This increase is a result of heightened security concerns due to Russia's invasion of Ukraine, along with intense pressure from U.S. President Donald Trump for increased defense spending.
The European Defense Agency (EDA) forecasted in its annual report released on Feb. 2 (local time) that EU defense spending in 2025 will reach 381 billion euros, a 10% increase from 343 billion euros in 2024. This amount exceeds three times that of Russia's defense budget and 1.5 times that of China, making it the second-largest in the world after the United States. Kaja Kallas, the EU High Representative for Foreign Affairs and Security Policy, stated, "Europe is spending record amounts on defense to ensure the safety of its citizens, and this will not stop here."
The surge in defense spending is due to security threats stemming from Russia. Since Russia's annexation of Crimea in 2014, European defense spending, which had been steadily increasing, exploded after the full-scale invasion of Ukraine in 2022. Western intelligence agencies are warning that Russia could be ready to threaten NATO members within 3 to 5 years once the war in Ukraine ends.
President Trump's "invoice" also pressured Europe to ramp up its military spending. He has long pressured Europe by raising the issue of "free-riding on security." At the NATO Summit in June, member countries agreed to spend 3.5% of their gross domestic product (GDP) on defense, a figure that far exceeds the previous goal of 2%.
As a result, EU countries are hastily increasing their defense budgets. As of 2024, 25 of the 27 EU countries, excluding Portugal and Ireland, have raised their defense spending. Among these, 16 countries have increased it by more than 10%. Notably, Poland, which borders Russia, is spending nearly 4% of its GDP on defense. The increased budget is primarily focused on "defense investments" such as new weapon acquisitions and research and development (R&D). About 130 billion euros (approximately 213 trillion won) of the 2025 budget is allocated for new weapon investments.
However, experts assess that this is still insufficient. EDA Administrator Andre Denk analyzed, "To achieve the new NATO goal of 3.5% of GDP, we need to spend more than 630 billion euros (about 1,030 trillion won) annually."