Luxembourg was one of the EU countries with the lowest government spending on defence in 2023, allocating just 0.6% of its GDP to the sector, according to new data released by Eurostat. This put it on par with Austria and just above Ireland and Malta, which spent 0.2% and 0.4% of their GDP, respectively.
Across the European Union, general government expenditure on defence reached €227 billion in 2023, making up 2.7% of total government spending and representing 1.3% of GDP. The data, based on Eurostat’s COFOG classification, shows a gradual increase in the share of defence spending over recent years, from 2.4% in 2021 to 2.7% in 2023, likely influenced by growing security concerns across the continent.
Read also: Luxembourg aims for 2% GNI in defence by 2030: Yuriko BackesWhile Luxembourg’s defence expenditure remains modest, some EU neighbours significantly ramped up their military budgets. Latvia led the bloc with defence spending at 3.1% of GDP, followed by Estonia (2.7%), and Lithuania (2.5%). Other high spenders included Greece (2.2%) and Poland (2.1%).
Eurostat’s findings highlight the continuing divergence in defence priorities among EU member states, with front-line countries in the east generally investing a higher share of their budgets into defence compared to western and central nations.
