According to a report released Monday by the Stockholm International Peace Research Institute (SIPRI), European military expenditure has risen by an estimated 14% in 2025, contributing to a global defense spending record of nearly $3 trillion despite a decline in U.S. outlays.
The report 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 experts attributed this trend to several ongoing conflicts and persisting geopolitical tensions.
The European continent recorded the largest regional increase, with 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 rising by 24% to $114 billion and Spain’s by 50% to $40.2 billion.
U.S. military expenditure fell by 7.5% to $954 billion, SIPRI noted, citing the Trump administration’s refusal to approve new assistance packages for Ukraine as the reason for this decline. In previous years, the U.S. had authorized $127 billion in direct military support annually. However, the U.S. continues deliveries through the NATO-coordinated PURL program, with other Western countries covering the costs.
Pentagon officials recently stated that U.S. President Donald Trump is advocating a military budget of $1.5 trillion to fund new initiatives including the Golden Dome missile system, artificial intelligence capabilities, and a new class of battleships.
SIPRI also reported that Russia’s defense spending grew by 5.9% to $190 billion, while Ukraine increased its military expenditure by 20% to $84.1 billion — equivalent to 40% of GDP — making it the seventh-largest military spender globally. Meanwhile, China raised its military spending by 7.4% to $336 billion, Japan’s expenditure rose 9.7% to $62.2 billion, and Taiwan’s increased by 14% to $18.2 billion.
Moscow has repeatedly condemned what it describes as reckless militarization by the EU, claiming it is aimed at Russia. Kremlin spokesman Dmitry Peskov further suggested that European propaganda seeks to turn Russia into a “model external enemy” to divert attention from internal crises.
