Brussels, Belgium – A new report by the European Court of Auditors reveals that the European Union’s efforts to achieve strategic autonomy and defense readiness by 2030 face severe structural and financial hurdles, despite unprecedented surges in military spending.
Spending Surge and Borrowing Risks
Although member states increased defense spending by roughly 80% between 2020 and 2025 to make up for historical underinvestment, auditors warned that uncoordinated allocation risks fragmented investments and capability gaps.
The report also cautioned against increasing reliance on debt-financed mechanisms—such as the €150 billion SAFE program and loan packages for Ukrainian defense—which place severe strains on the EU budget and defense supply chains.
Industrial Opportunities and Governance Challenges
Ultimately, the report emphasizes that while current security pressures create opportunities to strengthen Europe’s defense industrial base and foster joint procurement, persistent national fragmentation and complex governance structures threaten the overall efficiency of European defense integration.
