Advertisement

The New Arms Race at Europe’s Doorstep: A Deep Dive Into the Continent’s Fast-Changing Defence Spending Landscape

Europe is undergoing its most dramatic military transformation since the end of the Cold War. What began as a cautious response to Russia’s 2014 annexation of Crimea has evolved—especially after the full-scale invasion of Ukraine in 2022—into a sweeping rearmament effort across the continent. Defense budgets are rising, military doctrine is shifting, and long-held assumptions about security are being shattered.

The question at the heart of this shift is simple: Which European countries are spending the most on defense—and why?

The answers, however, reveal a far more complex story about geopolitics, historical memory, sovereign capability, and strategic vulnerability. Europe’s defense landscape is no longer defined merely by NATO obligations or EU frameworks. It is now shaped by an urgent recognition that the continent must again become capable of defending itself—politically, economically, and militarily.

Official Partner


A New Era of European Defence Spending

For decades, Europe underinvested in defense. Many states cut military budgets after the Cold War, relying heavily on U.S. military superiority through NATO. But Russia’s invasion of Ukraine triggered the greatest shock to Europe’s security architecture in a generation.

Across the continent, governments are now:

  • increasing budgets
  • modernizing equipment
  • rebuilding industrial capacity
  • expanding ammunition production
  • strengthening cyber defenses
  • rethinking conscription models
  • and accelerating procurement timelines

Europe’s spending is projected to reach historic highs by 2026–2028, with many countries finally meeting or exceeding NATO’s guideline of spending 2% of GDP on defense.


Who Spends the Most? The Leading Military Spenders in Europe

Using the most recent NATO, EU, and national data, Europe’s major defense spenders fall into several categories: traditional military powers, frontline states, and emerging responders.


1. The United Kingdom — Europe’s Largest Spender (Outside of Russia)

Approx. €70–75 billion annually

The U.K. is Europe’s most consistent high spender, maintaining large naval and air capabilities and a nuclear deterrent. Post-Brexit, the U.K. positions itself as Europe’s premier defense actor, frequently participating in global missions and supporting Ukraine with advanced weaponry.

Why it spends so much:

  • global role via NATO and the Commonwealth
  • nuclear arsenal maintenance
  • aircraft carriers and overseas deployments
  • ambition to remain a top-tier military power

2. Germany — Europe’s Most Dramatic Turnaround

Approx. €60–65 billion annually

Long criticized for underinvesting, Germany launched the Zeitenwende (historic turning point) initiative after Russia invaded Ukraine. A €100 billion special fund was announced to overhaul military readiness, though bureaucratic delays remain.

Drivers of higher spending:

  • realization of vulnerability in European supply lines
  • pressure from NATO allies
  • need to rebuild after decades of cuts
  • responsibility as Europe’s economic anchor

Germany aims to surpass the 2% GDP mark consistently by 2025–2026.


3. France — A Nuclear Power With Global Ambition

Approx. €50–55 billion annually

France has long viewed itself as Europe’s strategic pillar. With a nuclear deterrent and independent defense doctrine, France sees Russia’s aggression as confirming decades of French warnings.

Key spending motivations:

  • maintaining nuclear forces
  • operations in Africa (though reducing)
  • leading EU security initiatives
  • preparing for high-intensity conflict

France’s defense budget is scheduled to rise by almost 40% by 2030.


4. Italy — A Quiet but Significant Contributor

Approx. €30–33 billion annually

Italy’s spending is often overlooked, yet it is one of NATO’s top contributors, with advanced naval capabilities and strategic geography in the Mediterranean.


5. Poland — Europe’s Fastest-Growing Military Power

Approx. €30–40 billion annually (depending on classification)

Poland is among the most aggressive in military expansion, aiming for 4% of GDP—twice NATO’s recommendation—and purchasing:

  • Abrams tanks
  • HIMARS rocket systems
  • Korean K2 tanks and K9 artillery
  • F-35 fighter jets

Poland intends to build Europe’s largest land army within a decade.

Motivation:

  • proximity to Russia and Belarus
  • historical experiences of invasion
  • fear of being the next frontline

6. Spain — Gradual Modernization

Approx. €20–22 billion annually

Spain is modernizing naval and air capabilities but lags in rapid scaling compared to frontline states.


7. The Netherlands, Sweden, Finland, and Norway — The Northern Rise

Finland — Newly in NATO, Spending Above 2%

Finland maintains one of Europe’s most formidable reservist armies and advanced artillery. With its long border with Russia, defense spending is robust.

Sweden — Rejoining NATO Means Rebuilding

Sweden is increasing spending toward 2%, upgrading its aircraft industry (Gripen jets) and missile capabilities.

Norway — Energy-Rich and Highly Capable

With Arctic responsibilities and oil revenues, Norway maintains high-tech defense capabilities.

The Netherlands — Strong Cyber and Naval Forces

Expanding rapidly as part of NATO defensive planning.


8. Central & Eastern Europe — The New Defense Frontline

Countries such as Estonia, Latvia, Lithuania, Slovakia, and Czechia are making record-level increases, often exceeding the 2% threshold.

Baltics:

  • spending between 2.5%–3.5% of GDP
  • investing heavily in air defense, drones, and ammunition
  • deep coordination with NATO

These states see Russia not as a distant threat but an existential one.


Russia — The Elephant in the Room

Although not an EU state, Russia remains Europe’s largest military spender after the U.K., with expenditures estimated between €90–120 billion annually, depending on classification, hidden spending, and war costs.

Russia’s war in Ukraine is the primary catalyst for Europe’s rapid rearmament.


What Is Driving the Spending Surge Across Europe?

1. The War in Ukraine

The war shattered illusions that diplomacy alone can protect borders.

2. The U.S. Pivot to Asia

Europe fears greater burden as America shifts focus to China.

3. Decline of the Post-Cold War Order

Hybrid threats, cyberattacks, and energy warfare are now permanent features.

4. Public Opinion Shift

European citizens, once skeptical of defense spending, now increasingly support stronger armies.

5. Defense-Industrial Awakening

Europe is rebuilding factories to produce:

  • artillery shells
  • drones
  • air defense systems
  • armored vehicles

The goal is self-sufficiency—not reliance on U.S. stockpiles.


Who Will Lead Europe’s Military Future?

Europe’s emerging defense reality is shaping new leaders:

  • Poland as the backbone of land defense
  • France as the nuclear and strategic leader
  • Germany as the industrial giant
  • U.K. as NATO’s operational spearhead
  • Nordics as the technological innovators
  • Baltics as the moral and geopolitical conscience of the continent

This multipolar defense environment will define Europe’s security architecture through the 2030s.


The Big Question: Can Europe Defend Itself Without the U.S.?

Not yet. But the trajectory is clear:
Europe aims to reduce dependency on the U.S. while preparing for long-term strategic autonomy.

To get there, Europe needs:

  • more ammunition
  • stronger supply chains
  • faster procurement systems
  • integrated command structures
  • shared defense-industrial planning

The surge in spending is the first step.


Conclusion: Europe’s Defense Map Has Been Redrawn—And It Will Never Look the Same Again

Europe is entering a new era defined not by peace treaties, but by preparedness.
The continent’s defense spending boom reflects a sobering reality: security is no longer guaranteed, and the price of underinvestment is far higher than the cost of rearmament.

As Europe strengthens its military posture, the balance of power on the continent is shifting—from west to east, from complacency to vigilance, from fragmented defense to collective urgency.

The coming decade will determine whether Europe can transform rising budgets into real capability—or whether the continent’s rearmament remains more symbolic than strategic.

But one thing is undeniable:
Europe has awakened.
And it is rebuilding its defenses with a clarity and purpose not seen in generations.

author avatar
Staff Report

Keep Up to Date with the Most Important News

By pressing the Subscribe button, you confirm that you have read and are agreeing to our Privacy Policy and Terms of Use