Aviation Week Network Reports Historic Defense Spending Shift: Europe to Outpace U.S. in 2025

European Defense Investment Reaches Unprecedented $170.1 Billion, Surpassing Pentagon Budget for First Time Since World War II

WASHINGTON, DC, UNITED STATES, May 28, 2025 /EINPresswire.com/ -- In a landmark shift that signals a dramatic transformation of global military spending patterns, Aviation Week Network, the premier global intelligence platform for aerospace and defense markets, reveals for the first time since the Second World War, Europe is set to outspend the U.S. on the procurement of military equipment. Following a series of announcements and revisions to European defense spending plans over recent months, regional spending on the acquisition of defense equipment is projected to reach $170.1 billion compared to the $167.7 billion requested for the Pentagon in 2025.

“This is perhaps the clearest indicator yet of the scale of the strategic transformation underway in Europe,” said Craig Caffrey, Aviation Week Network’s head of defense data. “Since the end of the Cold War, Europe has generally spent less than half of the amount spent by the United States on military equipment, so this is a remarkable turnaround that we’ve seen since 2022.” European spending on defense procurement has more than doubled since 2021 as governments across the continent have sought to counter the renewed threat from Russia and to offset concerns about U.S. security commitments to the region.

“The problem in Europe is no longer levels of investment in defense, but how the industrial base will cope with surging demand,” added Caffrey. “Raising military spending is the crucial first step, but a lot of hard work needs to be done to ensure the European defense sector can support the region’s expanded strategic goals.”

For detailed analysis and forecasts, Aviation Week Network will host a special webinar, "AWIN Defense Market Outlook Series: Europe," examining the implications of this unprecedented shift in global defense spending.

To register for the webinar and access exclusive insights, visit: aviationweek.com/awin-outlook-europe

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Elizabeth Sisk
Aviation Week Network
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