European Union Defence Spending Reaches €279B in 2023

The European Defence Agency (EDA) has published its annual Defence Data report for 2023, revealing that European Union Member States collectively spent a record €279 billion on defence, marking a 10% increase compared to 2022.

This increase is likely driven by Russia’s 2022 invasion of Ukraine, which compelled European countries to boost their defense spending the following year.

This marks the ninth consecutive year of growth, with 22 Member States increasing their defence budgets, and 11 of them raising spending by over 10%.

In 2023, €72 billion was allocated to defence investments, accounting for 26% of total expenditure—the highest share recorded since EDA began data collection in 2005. A significant portion of these investments focused on equipment procurement, which grew by 19% compared to the previous year. Collaborative research and technology projects funded through the European Defence Fund (EDF) also made a substantial impact, receiving approximately €100 million under calls issued in 2021 and 2022.

The report highlights a sustained commitment by Member States to exceed the benchmark of allocating 20% of total defence expenditure to investments. In 2023, 20 Member States met this target, with Luxembourg, Estonia, Finland, and Poland dedicating the highest proportions of their budgets to defence investments. However, the allocation for research and technology fell short of the 2% benchmark, with two countries contributing over 80% of R&T spending at the EU level.

Looking ahead, the Coordinated Annual Review on Defence (CARD) projects that EU defence spending will rise to €326 billion in 2024. Defence investments are expected to account for 31% of this total, with funding for research and technology increasing to €5 billion. Procurement spending is also forecast to continue its growth, potentially surpassing €90 billion in 2024.

Jiří Šedivý, Chief Executive of the EDA, emphasized the need to strengthen the European Defence Technological and Industrial Base to reduce reliance on non-EU suppliers. He also called for prioritizing innovation and collaborative efforts to address gaps in defence research and technology.