EU to Mobilize €800 Billion for Ukraine Amid Global Defense Spending Surge

The European Union has announced a potential mobilization of up to 800 billion euros ($841 billion) to support Ukraine, marking a significant financial commitment amid global shifts in defense spending. This development follows reports that the United States had unexpectedly paused military aid to Ukraine, creating a void the EU now looks to fill. As countries worldwide reassess their defense budgets, China has continued its trend of increasing its military expenditure, aiming to firmly safeguard national security.

China remains the world's second-largest military spender, trailing only the United States. For the fiscal year 2025, the U.S. has set its military budget at an impressive $850 billion. Meanwhile, China has proposed a national defense budget of 1.78 trillion yuan ($244.99 billion) for the same period. This represents a consistent 7.2% increase in defense spending, mirroring growth rates from the previous two years.

Despite the annual increases, China's defense expenditure as a share of GDP has been maintained below 1.5% for many years—lower than the global average. This strategic budgetary decision highlights China's approach to balancing national security needs with economic considerations. Beijing's current economic growth target stands at roughly 5%, indicating that its defense budget increase significantly outpaces its economic growth expectations.

This surge in defense spending is not unique to China and the United States. Western governments are also seeking to enhance their military capabilities amid rising global tensions. The European Union's substantial financial commitment towards Ukraine is part of a broader effort by these nations to bolster their own security and address emerging geopolitical challenges.

In 2022, China increased its defense budget by 7.1%, following a 6.8% rise in 2021. The consistent upward trajectory in China's military spending underscores its focus on strengthening its defense mechanisms while maintaining fiscal discipline relative to GDP. Last year, China allocated a 7.2% increase in defense spending, reaching 1.67 trillion yuan, in line with its steadfast approach.