The annual report of the European Defence Agency (EDA) on the defence data of EU member states in 2022, published on 30 November 2023, shows a record amount of EUR 240 Bn in European defence spending: an increase of 6% compared to the previous year and the eighth year of consecutive growth.
Countries recording the highest increases in defence spending among the 27 EU member states were Sweden (up 30.1%), Luxembourg (up 27.9%), Lithuania (up 27.6%), Spain (up 19.3%), Belgium (up 14.8%) and Greece (up 13.3%). Defence spending decreased in just six member states: Bulgaria, Finland, the Netherlands, Portugal, the Czech Republic and Hungary.
Another superlative was recorded in the area of defence investments, which totalled EUR 58 Bn. Here there was an increase in expenditure of 7% compared to the previous year. This means that the agreed mark of 20% was exceeded for the fourth time “with an overall share of 24.2% in the EU”, according to the press release from the Brussels-based EU authority, which was founded in 2004 to support co-operation in the defence sector.
Countries spending the highest proportion of their total defence expenditure on investments were Luxembourg (53.5%), Hungary (48.1%), Greece (42.6%), Finland (37.4%) and Lithuania (34.8%). Seven member states remained below the 20% benchmark: Denmark (18.7%), Germany (18.4%), Ireland (10.7%), Malta (13.2%), Portugal (18.2%) and Austria (9.6%).
Beyond the success stories, the decline in defence-related research and development (R&D) expenditure cast a shadow. Despite record-breaking overall expenditure, spending on defence research and technology (R&T) fell by EUR 200 M compared to the previous year. Only two member states (which were not named in the report) met the agreed benchmark of 2%.
The EDA is not only calling for increased efforts in the area of individual R&D but also in collaborative R&D, where a decrease of EUR 24 M was recorded in 2022. According to the EDA, the member states would have to spend EUR 467 M more to achieve the European benchmark of 20% for collaborative R&D in the defence sector.
A more detailed analysis of this data will feature in the next issue of Europäische Sicherheit & Technik.
