Euro26 Spent 194 Billion Euros on Defense

The Defence Data exercise has been running for five years, based on agreed categories and definitions. It is a well-established and recognized exercise. Data are always from the previous year, because they are the most reliable. Analysis has been conducted over period 2006-2010. The data given now to the media are only collective figures. It should be noted that there are big differences between individual Member States. National breakdown data will be provided by mid-January after the standard consultation process has taken place asking for authorisation (the data are owned by the pMS; EDA is only the custodian of the data). KEY FINDINGS In 2010, total defence spending by EDA 26 pMS remained constant at EUR 194 billion. This represents 1.6% of total GDP or 3.2% of Total Government Expenditure. However, if inflation is taken into account, we can see that defence spending in real terms decreased not only in 2010 but it has been decreasing since 2006. Personnel-related expenditure represents 50% of total defence expenditure. The second biggest component of defence spend is Operation and Maintenance with a share of 23% amounting to EUR 44 billion, followed by Investment which takes up almost EUR 43 billion or a share of 22%, the highest since 2006 both in absolute value and share of total defence budget. Analysing now the different Investment components, in 2010 equipment procurement (which represents 80% of total Investment) increased by 5.5% reaching EUR 34 billion. Research and Technology (R&T, including basic research, applied research and technology demonstration, leaving out expenditure for demonstration) it continues in a decreasing trend, amounting in 2010 to about EUR 2 billion.