Building a Stronger European Military: 2030 Goals and Funding

European Parliament Resolution – European Defence Readiness 2030 (17 Dec 2025)

The Parliament says Europe’s defence must be stronger, better funded and more coordinated. The key points are:

• Current defence spend – In 2024 EU member states spent €343 billion on defence, 1.9 % of their combined GDP. This is 19 % more than in 2023 and may rise above the 2 % NATO guideline next year.

• Funding gap – The Commission’s ReArm Europe plan finds an €800 billion shortfall that must be closed by 2030. That means defence spending would need to grow 10 % a year, reaching about €575 billion in 2030 – 3.15 % of the EU’s GDP.

• New budget for 2028‑2034 – The Multi‑annual Financial Framework (MFF) will give €115.7 billion (2025 prices) to defence and space – five times more than before – and €15.7 billion to military mobility, a ten‑fold jump.

• Where money is spent – In 2024, €88 billion was spent on buying new equipment (up 39 % from 2023) and €13 billion on research and development (up 20 %). Of all defence spending, 31 % goes to investment, 88.2 % of that to equipment and 11.8 % to R&D.

• Reliance on outside suppliers – 78 % of procurement between Feb 2022 and Jun 2023 came from outside the EU, mainly the United States.

• European defence industry (EDTIB) – The EDTIB creates about 580 000 direct jobs, 1.4 million indirect jobs and earns €160 billion in turnover, a third of which is from exports.

• SME financing problems – Small and medium‑sized firms in the defence sector face trouble getting loans or equity because of payment delays, image concerns and limited exit options. They need an extra €30‑40 billion in financing for 2025‑2030, of which €6‑18 billion could come from equity.

• European Investment Bank (EIB) – The EIB has already mobilised about €1 billion in 2024, aims for €2 billion in 2025 and has reached €3 billion. It has given €13 billion to defence since 2017 and plans another €6 billion by 2027. The resolution asks the EIB to broaden its mandate to support the EDTIB and to make it easier for SMEs to use its funds.

• Joint procurement and domestic preference – The Parliament wants at least 40 % of defence equipment to be bought jointly by 2030, 35 % of trade inside the EU, and 50 % of equipment made in the EU by 2030 (60 % by 2035). It also calls for a stronger EU preference for domestic defence suppliers and for better coordination of national budgets.

• Financing tools – The resolution encourages the Commission to use the MFF, the Savings and Investment Union, and capital‑market reforms to bring in private capital, cut paperwork and support dual‑use projects (technology useful for both defence and civilians).

• Overall goal – With these measures, the Parliament hopes Europe can close its defence gaps, buy and make more equipment at home, support its industry and SMEs, and be ready to respond quickly to any new threat.