The European Defense Agency (EDA) has published its annual Defense Data report for 2020-2021, detailing defense spending by the 26 EDA member States. In accordance with the report, in 2021, the total European defense spending stood at a new high mark of €214 billion, with a further 6% increase on 2020 and the 7thyear of consecutive growth. EDA also reported that Member States are investing more than ever on the procurement of defense equipment and research and development with a 16% rise compared to 2020. At the new established record, the total expenditure corresponds to an average 1.5% of the 26 EDA Member States’ gross domestic product (GDP), the same as recorded in 2020. EDA’s Defense Data report finds that the sustained increase in overall spending is also reflected in national numbers. In 2021, of the 18 Member States who increased spending, 6 raised it by 10% or more. The highest increases amounted to more than €4 billion by Italy in absolute terms and a 42%, 33% and 27%, increase in relative terms by Finland, Greece and Slovenia respectively. Only 8 Member States reduced spending, with the largest national cut standing at 15% in relative terms. Considering the Russia’s war of aggression against Ukraine, the increases in expenditure are likely to continue in the years ahead. However, despite these member States increases in defense, the European defense cooperation has still come a long way, as underlined by the HR/VP and Head of the European Defense Agency, Josep Borrell. Spending on European collaborative defense equipment procurement in 2021 accounted only for 18% of total defense equipment procurement, an increase on the 11% in 2020, but still not enough; the “Old Continent” Countries are still spending alone, a way for sure not being the most efficient one. The optimistic 35% European collaborative defense equipment procurement benchmark, which should be the commitment under the Permanent Structured Cooperation (PESCO), remains out of reach and will require almost doubling current investment in this area to reach the benchmark, which translates to €15.1 billion. From the EDA report, another important data popped out: the increased investment on defense Research and Technology (R&T). In 2021, R&T spending amounted to €3.6 billion, marking a massive 41% increase compared to 2020 and a new EDA recorded high. Compared to the historic low in spending reached in 2016, expenditure for defense R&T almost tripled. However, the trend is driven by Germany and France, which are responsible for more than 80% of the total defense R&T expenditure.

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