Europe’s sharp 14% increase in spending — to $864 billion — was the primary driver of global military expenditure growth in 2025, according to fresh data from the Stockholm International Peace Research Institute (SIPRI).
Per the institute, 29 European NATO members collectively spent $559 billion on defence, with 22 of those countries allocating at least 2% of their GDP to military needs.
Germany led European allies in spending, with its military budget rising 24% to $114 billion — pushing German defence expenditure above the 2% of GDP threshold for the first time since 1990, reaching 2.3%.
Spain posted notable growth as well, up 50% to $40.2 billion, allowing the country to exceed the 2% of GDP benchmark for the first time since 1994.
Ukraine ranked seventh in the global military spending index, with Kyiv increasing expenditure by 20% to $84.1 billion — approximately 40% of the country’s GDP.
Meanwhile, UK military spending fell 2% to $89 billion, while France’s rose 1.5% to $68 billion.
“In 2025, military spending by European NATO members grew faster than at any point since 1953. This reflects Europe’s push for greater self-sufficiency, as well as mounting US pressure to rebalance burden-sharing within the Alliance,” said Jade Guiberteau Ricard, a researcher in SIPRI’s Military Expenditure and Arms Production Programme.
She also flagged potential risks: “As states seek to meet the new NATO spending targets agreed in 2025, there is a danger that the boundaries between strictly military and other ‘defence- and security-related’ spending will become blurred. This would reduce transparency and further complicate objective assessments of countries’ actual military capabilities.”