Key Takeaways

  • Defense spending in Europe increased by almost 13 percent in real terms in 2024 and 2025.
  • Germany accounted for a quarter of this uplift, cementing its rank as the fourth largest defense spender globally.
  • Europe’s push continues to be prompted by two factors: Russian aggression and reduced US willingness to underwrite regional security.

Strategic Implications

This increase may indicate Europe’s growing concern about aerial threats and its efforts to maintain a strong military presence. The focus on bolstering NATO’s Eastern flank suggests a shift in defense priorities, potentially benefiting countries like Germany and others in the region. However, sustained political and public support will be crucial for further growth in defense expenditure.