The European Union recorded a historic surge in military spending in 2021, reaching a total of 214,000 million euros. The European Defence Agency (EDA) notes that this figure marks a 6 percent rise from the previous year, continuing an upward trajectory that has persisted for seven years in a row.
According to the EDA, member states expanded their defense budgets by 6 percent versus 2020, reflecting the strongest annual growth since the EU began increasing military investment after the financial crisis ended in 2015. Based on GDP, EU defense outlays stood at 1.5 percent, the same level seen in 2020, indicating a proportional emphasis on defense even as economies recovered from the crisis.
Since 2014, when defense investment was comparatively restrained, total spending has grown by about 52,000 million euros, an increase of roughly 32 percent. The upsurge followed commitments made by the EU in response to Russia’s invasion of Ukraine, and observers anticipate that the rising trend will persist in the coming years.
Nation by nation, 18 member states raised defense spending in 2021, led by Finland with significant gains. Greece posted a 42 percent uptick, and Slovenia increased its budget by 33 percent. Italy’s defense budget saw an increase of around 4,000 million euros in absolute terms. In contrast, eight member states reduced their defense expenditures, signaling a mixed national approach to the broader EU defense strategy.
EDA assessments describe these developments as positive, suggesting they help offset the long period of under-spending on defense that the EU experienced from 2009 to 2018. Yet the agency emphasizes that spending must be coordinated across the bloc to close the gap with strategic goals, including the objective of representing 35 percent of total investment in joint defense initiatives. Despite overall progress, the aim to synchronize and boost collaborative defense projects remains only partly achieved.
Additionally, the report highlights a notable rise in joint procurement. EU countries increased collaborative purchases with a marked step up to 7.9 billion euros in joint acquisitions, nearly doubling the 4,100 million euros recorded the year before. This shift toward pooled buying signals a move toward greater efficiency and interoperability among European armed forces.
Josep Borrell, the EU’s High Representative for Foreign Affairs and Security Policy, described the path to stronger European defense as a long road and argued that spending must be complemented by shared investments. He called for coordination to become the norm, asserting that increased expenditure alone cannot deliver the required capabilities without joint action and common planning. The emphasis is on turning higher budgets into integrated, lasting capabilities rather than isolated, national projects.
Experts note that the central challenge is not simply increasing totals but converting this spending into modernized force structures, improved interoperability, and rapid response capacities. The overall message from the report is clear: greater collaboration, better planning, and a focus on joint programs are essential to ensure the European Armed Forces can meet future security challenges with resilience and cohesion. The takeaway for policymakers is straightforward—coordinated investment paired with joint execution is what will deliver durable benefits for defense across the European Union, now and in the years ahead.