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American Focus > Blog > Economy > Russian defence spending exceeds all of Europe combined, study finds
Economy

Russian defence spending exceeds all of Europe combined, study finds

Last updated: February 12, 2025 3:40 am
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Russian defence spending exceeds all of Europe combined, study finds
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Military spending in Russia has been on the rise, surpassing all of Europe’s defense budgets combined. According to a recent study, Russian defense spending increased by 42% last year, reaching Rbs13.1tn, which is equivalent to $462bn based on purchasing power parity. In comparison, European defense budgets, including the UK and EU member states, rose by nearly 12% to $457bn.

The International Institute for Strategic Studies (IISS) highlighted the security challenges facing Europe if the US reduces its support for Ukraine and European defense. US President Donald Trump has emphasized the need for Europe to increase its defense spending, including support for Ukraine. Trump has called for Europe to spend 5% of GDP on defense, compared to the current average of about 1.7%. Nato secretary-general Mark Rutte has also stressed the importance of increasing European defense spending.

The IISS forecasted that Russian defense spending would continue to rise, reaching Rbs15.6tn this year, equivalent to 7.5% of GDP. Despite the economic toll, Russia is still able to bear the costs of war. On the other hand, if Europe were to increase defense spending to 3% or 5% of GDP, it would significantly surpass Russian defense spending.

Germany’s defense budget exceeded the UK’s for the first time in over three decades, reaching $86bn. However, sustaining this level of spending is uncertain, as Germany’s commitment to spend 2% of GDP by 2029 is also uncertain. The UK currently spends 2.3% of GDP on defense, with plans to increase it to 2.5%.

French defense spending rose by 4.5% to $64bn last year, equivalent to 2% of GDP. Estonia, bordering Russia, spent almost 4% of GDP on defense, while Poland spent 3.25%, making it Europe’s second-highest spender. Despite their high defense spending relative to GDP, their absolute spending levels are still lower than Europe’s largest economies.

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Overall, the geopolitics of defense spending in Russia and Europe continue to evolve, with implications for global security and military capabilities. It is crucial for European countries to assess their defense priorities and budget allocations in response to changing security threats and geopolitical dynamics.

TAGGED:CombineddefenceEuropeexceedsfindsRussianspendingStudy
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