French Military Orders Hit Record €38B in 2025: Arms & Production Boost

French Military Spending Surges, Europe Follows as Global Expenditure Reaches New High

Global military expenditure reached $2.718 trillion in 2024, marking a 9.4 percent increase in real terms from the previous year and the steepest year-on-year rise observed since the end of the Cold War, according to data released by the Stockholm International Peace Research Institute (SIPRI).

The surge in spending was observed across all world regions, with particularly rapid growth in Europe and the Middle East. The United States, China, Russia, Germany, and India remain the top five military spenders, collectively accounting for 60 percent of the global total – a combined expenditure of $1.635 trillion.

Europe, including Russia, saw a significant 17 percent increase in military spending, reaching $693 billion. This increase is largely attributed to the ongoing war in Ukraine, pushing European military expenditure to levels not seen since the end of the Cold War. All European countries, with the exception of Malta, increased their military spending in 2024.

France is at the forefront of this trend, with arms orders reaching a record €38 billion in 2025. According to reports, French authorities are actively seeking to accelerate production and streamline processes to meet growing demands. This push reflects a broader shift towards what President Emmanuel Macron has termed a “wartime economy,” as highlighted in a France24 report from March 4, 2025.

The increase in French orders includes substantial investments in missiles, armored vehicles, and other key defense systems. The French Directorate-General of Armaments (DGA) is reportedly “cutting corners” and “taking risks” to expedite the procurement process, signaling a heightened sense of urgency.

This global rise in military expenditure comes as governments increasingly prioritize security, often at the expense of other budgetary areas. Researchers at SIPRI warn that these economic and social trade-offs could have significant and lasting effects on societies worldwide.

The United Kingdom is also experiencing a boom in defense exports, reaching a record £20 billion in 2025. This surge is attributed to a “massive order” of ammunition, ranging from small arms to larger caliber munitions, bolstering both domestic jobs and strengthening alliances within NATO.

However, Europe’s increasing reliance on the United States for military equipment is raising concerns. A recent policy brief from Bruegel highlights a deepening dependence on US foreign military sales, particularly for high-tech equipment like air defense systems, missiles, and fighter jets. This dependence provides the US with significant leverage in other policy areas, such as trade, and raises questions about the potential for supply constraints, especially if US priorities shift towards Asia.

European policymakers are now focused on strategies to minimize this dependence, emphasizing the need for increased domestic production of key weapon systems. The goal is to ensure that European production capacity grows faster than demand, gradually reducing reliance on the US defense industrial base.

The global military burden – the proportion of global gross domestic product (GDP) dedicated to military expenditure – increased to 2.5 percent in 2024. Over 100 countries around the world increased their military spending during the year, demonstrating a widespread trend towards increased investment in defense capabilities.