On December 6, the European Defence Agency (EDA) published its annual Defence Data report for 2019-2020, detailing defence spending by the 26 EDA Member States. In 2020, total defence spending stood at €198 billion, marking a further 5% increase on 2019, and making it the highest level ever recorded by EDA since it began collecting data in 2006. EDA’s report also finds that 19 Member States increased their overall defence spending in 2020, with 6 raising spending by over 10%.
Sustained Rise in Defence Expenditure and Investment
At €198 billion, total defence expenditure corresponds to 1.5 % of the 26 EDA Member States’ gross domestic product (GDP) and marks the sixth year of consecutive growth. For the second year in a row, EDA has recorded a 5% rise in defence spending, despite the economic impacts of COVID-19.
EDA’s Defence Data report finds that the sustained increase in overall spending is also reflected in national numbers. In 2020, of the 19 Member States who increased spending, 13 raised spending by 5% or more. 6 Member States raised it by 10% or more. 7 Member States reduced spending, up from 3 in 2019, for a combined total reduction of €1.42 billion.
Increased spending was also recorded in a variety of areas, with defence investments in research, development and procurement of new equipment continuing to grow. Defence investments by the Member States hit EDA’s high-ever recorded figure of €44 billion, representing a 5% increase on 2019.
When combined, Member States have achieved the 20% benchmark of defence investment as a percentage of total defence expenditure, with 14 Member States allocating 20% or more, while a joint EDA recorded a low of only 3 states spent less than 10% in this area.