Spain's Defence Budget Surged in 2025, Crossing the 2% GDP Threshold for the First Time in 20 Years

Spain has become one of the world's leaders in terms of military spending growth in 2025. According to the annual report by the Stockholm International Peace Research Institute (SIPRI), the country increased its defence budget by 50% — to €34.265 billion — exceeding the 2% of GDP threshold for the first time in 20 years. Over the past 10 years, Spain's military spending has grown by 122%. Among major Western nations, only Belgium posted a higher rate of defence spending growth — 59%.

Global military expenditure reached €2.49 trillion in 2025, up 2.9% on the previous year. This marks the eleventh consecutive year of growth in global defence spending. The main drivers were Europe and Asia. European countries increased spending by 14% — to €804 billion — while the Asia-Pacific region raised its figure by 8.1%, to €633 billion. 22 of the 29 European NATO members reached the 2% of GDP threshold — a level analysts have not recorded since the Cold War.

The United States, by contrast, cut military spending by 7.5% to €887 billion. The reduction is explained primarily by the absence of new military aid packages for Ukraine, whereas over the previous three years, a combined total of €118 billion had been allocated for that purpose. SIPRI experts nonetheless warn that the decline will be short-lived. The approved US budget for 2026 exceeds €930 billion, and the Trump administration's proposal for 2027 could push that figure to €1.4 trillion.

In Europe, Germany stands out with a 24% increase. The country's government is already working toward building what Defence Minister Boris Pistorius has described as "the strongest army in Europe." Russia increased spending by 5.9% — to 7.5% of GDP — while Ukraine raised its military expenditure by 20%, bringing it to 40% of GDP amid the ongoing war with Russia.

Asia and Oceania recorded their fastest growth since 2009. China increased spending by 7.4% — marking more than 30 consecutive years of uninterrupted growth. Japan raised its budget by 9.7% and Taiwan by 14%, amid intensifying Chinese military activity in the region.

The Middle East showed relative stability despite ongoing conflicts, with growth of just 0.1%. Israel cut spending by 4.9% following the ceasefire agreement in January 2025, though its budget remains 97% above 2022 levels. Iran reduced spending by 5.6% due to high inflation.