Transforming Europe’s defence

Russia’s attack on Ukraine has forced Europe – still greatly dependent on the U.S. for security – to boost military expenditure by the most since the end of the Cold War three decades ago


Military expenditure (change 2021-22)	00.00bn Local currency (2022)
Finland		€4.59bn	44.5%
Belgium		23.7% 	€6.53bn
Sweden		20.1%	SEK78.09bn
Spain		16.8%	€19.31bn
Denmark		16.6% 	DKK 38.68nb
Europe		14.2%	$480.32bn
UK		13.2%	£55.53bn
Norway		11.2%	NOK80.62bn
Germany		10.9%	€53.02bn		
Greece		9.8%	€7.71bn
France		6.5%	€51.00bn
Italy		3.9%	€31.84bn
Switzerland	3.3%	CHF5.87bn
Ireland		3.3%	€1.11bn


EUROPE’S SECURITY BUDGETS

Mar 2021: European Peace Facility set up to finance military operations carried out by EU or its allies. EPF has budget of €5.7 billion

May 2021: European Defence Fund launched. EDF is €7.95 billion three-year pilot scheme to boost EU’s military capabilities

Feb 2022-Apr 2023: EPF spends €4.6 billion to reimburse countries for weapons donated to Ukraine

May 2022: EU announces defence spending increases of €200 billion

July 2022: Commission agrees to commit €500 million to EDIRPA (European Defence Industry Reinforcement Procurement Act) for 2022-24

Mar 2023: EU commits to supply one million artillery shells to Ukraine within 12 months

2024: European Defence Investment Programme (EDIP) to replace EDIRPA

EDIP: Aim for joint purchase of 35% of equipment


Sources: Ares Group, Bloomberg, European Commission, SIPRI 
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