Richard Parks As security threats grow, the EU grapples with funding rearmament amid tight national budgets and differing priorities.
Surge in EU Defence Spending
The EU has significantly increased defence spending since Russia’s invasion of Ukraine in February 2022. According to the European Defence Agency (EDA), the EU-27 spent €326 billion on defence in 2024, accounting for 1.9% of the bloc’s GDP. This marks a 31% rise compared to 2021. However, logistical delays, such as building factories and training personnel, slow progress.
Joint Production and Borrowing as Solutions
Joint arms production and procurement are seen as cost-saving measures. Guntram Wolff of the Bruegel Institute argues that shared investments in hypersonic missiles, drones, and air defence systems could boost efficiency and reduce expenses.
However, national defence priorities vary. France, for instance, prioritizes nuclear deterrence, while other countries focus on lightweight equipment or heavy artillery, depending on their strategic needs.
Joint borrowing through Eurobonds is another proposal. This approach would leverage the EU’s collective financial strength to secure cheaper loans. However, fiscally cautious nations like Germany remain skeptical of joint borrowing.
Buying European: A Question of Strategic Autonomy
French President Emmanuel Macron advocates for purchasing European-made defence equipment to ensure strategic autonomy. However, some member states prefer external suppliers to cut costs and reduce delivery times.
Philippe Perchoc of IRSEM Europe emphasizes the risks of relying on non-European suppliers. “If global conditions change, Europeans won’t have priority access,” he warns.
Limited Role for the EU in Defence
Despite calls for coordination, defence policy remains under the control of individual member states. Balancing national interests with collective security goals will be key to developing a unified European rearmament strategy.