European NATO members have reached their highest level of defense spending as a share of GDP since the Cold War, with frontline states driving the sharpest increases and Poland now allocating a larger proportion of its economy to defense than the United States.
According to NATO figures for 2025, all European Union members of the alliance met or exceeded the 2% of GDP target for the first time. Poland led the pack at 4.48% of GDP, ahead of the United States at 3.22%.
The Baltic states also posted high figures, with Lithuania at 4%, Latvia at 3.73% and Estonia at 3.38%.
Northern European countries followed closely, while several other allies remained closer to the minimum target. Overall, European NATO allies increased defense expenditures by 14% in real terms to around €739 billion, the steepest rise since the 1950s, according to SIPRI data.
Analysts note that while spending has surged, a significant portion — around 40% — goes to non-EU suppliers, and the actual growth in military capability has been more modest than headline figures suggest. Frontline states are projected to maintain their lead, with some on track toward 5% of GDP by the mid-2030s.