Ireland's defence spend stuck at bottom of EU table

The LÉ George Bernard Shaw docked at the Irish Naval Base in Haulbowline. Ireland’s defence spend will be eight times less than the EU average this year. Picture: Noel Sweeney

Ireland’s defence expenditure continues to be rooted at the bottom of the EU table, new figures show.

The European Defence Agency (EDA) ‘Defence Data 2025-2026’ shows that while 23 of the 27 member states have met or surpassed the 2% of GDP mark, Ireland’s rate remains stuck at 0.2% of GDP.

Because of the distorting effect of multinational profits in Ireland, GDP is not considered an accurate estimate, with GNP or GNI used instead. Even using these estimates, Ireland’s defence spend is just 0.3% of GNI/GNP.

The EDA report comes as Ireland hosts the EU presidency and holds a series of defence and foreign affairs meetings with EU ministers and European Commission officials.

Ireland’s presidency programme commits to developing the EU’s “critical defence capabilities” through a stronger European defence industry.

The EDA report shows that 10 more member states reached the 2% mark last year, bringing to 23 the number of states spending at least that amount.

The report points out that the remaining four member states are not members of Nato, which previously set the 2% target. The four are military neutral states, Ireland, Austria, and Malta, and non-aligned Cyprus. 

EDA figures for 2025 and estimates for 2026 show:

• Ireland is the lowest of all states, at 0.2% of GDP in 2025, with around 0.25% next year;
• Malta is second lowest at 0.5% of GDP (0.4% in 2026);
• Austria is third lowest at 1% of GDP in 2025 (1.1%);
• Cyprus is fourth lowest at 1.5% of GDP (2.5%) 

The EDA says the EU average is now at 2.2% of GDP, with a total estimated defence spend of €418bn in 2025, with projections of spending reaching €454bn in 2026, equating to 2.4% of GDP.

This would suggest Ireland’s defence spend will be eight times less than the average this year. The biggest spenders on defence are countries bordering Russia — Lithuania, Estonia, Poland and Latvia.

The EDA report coincides with another document, 'Strategy Statement 2026-2029', published by the Department of Defence. It reiterates "record" defence spending in Ireland, with an allocation of €1.49bn in 2026, up 35% on 2022.

• Cormac O'Keeffe, security correspondent