Europe’s Defence Spending Surges to Post–Cold War Highs

European defence spending has reached its highest level since the Cold War era, driven by the war in Ukraine and heightened geopolitical tensions. New data show that military expenditure in Europe jumped by 17% in 2024 to about $693 billion, pushing the region’s spending beyond the level recorded at the end of the Cold War .

This surge was the main contributor to a record $2.72 trillion in global military outlays, the steepest annual rise in decades. Virtually all European countries ramped up defence budgets in response to Russia’s aggression, ending a long post-Cold War downtrend. European governments across NATO and the EU have enacted unprecedented defence spending increases .

This analysis answers: What is the central argument of “Europe’s Defence Spending Surges to Post”, and why does it matter for European defence and dual-use markets? What does this mean for European defence funding, procurement and investment decisions? How mature and defensible is the position described in “Europe’s Defence Spending Surges to Post”? Which European actors, programmes and funding instruments are most exposed?