Comparison of EU-27 and US defence expenditure (as % of GDP) against the 2% NATO benchmark

The global economic and financial crisis and austerity measures have seriously hit MS’ defence budgets. According to the Military Balance 2013 (see annex), since 2008 defence spending in Europe has followed a downward trend. In 2012, real defence spending declined in the majority of MS (except in Poland and Estonia, where increases were noted), with the largest real cuts made by Spain (-17.6%), Hungary (-16.7%) and Slovenia (-16.1%). The largest military spenders (UK, France and Germany) also made major cuts.
The EDA’s latest defence data for 2011 (excluding Denmark and Croatia) shows that MS spent 1.55% of their GDP on defence (€193 billion). In comparison, the US spent more than 4% of its GDP on defence (€503 billion). But with the US also reducing its military spending (by some US$55 billion a year from 2013 to 2021), Europeans will have to shoulder more of the burden.