Defence & Aerospace Supplier Guidance:
European defence expenditure 2006
Publication date: 2007
The European Defence Agency (EDA) has gathered comprehensive data on European defence expenditure showing that in 2006 the 26 participating Member States spent €200 billion on defence. The figure represents both spending by Ministries of Defence and defence-related expenditure from other sources (other Ministries, special budgetary lines). The total of €200 billion constitutes 1,78% of the the combined 11,3 trillion EU Member State economies.
| Total Defence Expenditure | €200 Billion |
| Defence Expenditure as a % of GDP | 1,78% |
| Defence Expenditure as a % of Government Expenditure | 3,80% |
| Defence Expenditure Per Capita | €412 |
| Military Personnel* | 1,940,112 |
| Civil Personnel | 484,827 |
| Defence Spending per Soldier | €103,563 |
| Investment (Equipment Procurement and R&D) per Soldier | €19,997 |
* Military Personnel: Authorised strengths of all active military personnel; includes non-MOD personnel in uniform who can operate under military command and can be deployed outside national territory.
| Personnel* | €110 Billion |
| Investment (Equip. Proc. including R&D/R&T) | €38,7 Billion |
| Operations and Maintenance** | €43,3 Billion |
| Other (Includes Infrastructure & Construction) | €8,9 Billion |
* Personnel: Pay and allowances paid to: military personnel; civilian personnel. Pensions – only if paid directly by the government (MoD or other State-owned institution) to: retired military personnel; retired civilian employees.
**Operations and Maintenance (O&M): Expenditure covering supplies of ammunition and explosives, petroleum products, spare parts for O&M of major equipment, other equipment and supplies (to military personnel or units, excluding major equipment), rents for real estate as well as expenditure for utilities, maintenance of infrastructure and other general administrative expenses.
| Equipment Procurement* | €29,1 Billion |
| R&D** | €9,1 Billion |
| R&T (Subset of R&D)*** | €2,5 Billion |
* Equipment Procurement: Expenditure includes expenditure for all major equipment categories (missile systems, missiles, aircrafts, artillery, combat vehicles, engineering equipment, weapons and small arms, transport vehicles, ships and harbour craft, electronic and communications equipment, etc.), that are not included in O&M spending..
**R&D: Any R&D programmes up to the point where expenditure for production of equipment starts to be incurred.
***R&T (Subset of R&D): Expenditure for basic research, applied research and technology demonstration for defence purposes.
| Collaborative Defence Equipment Procurement | €6,7 Billion |
| European Collaborative Defence Equipment Procurement | €6,1 Billion |
| Collaborative Defence Equipment Procurement out of Total Procurement | 23% |
| European Collaboration out of Collaborative Procurement | 91% |
Collaboration: Agreement by at least two Ministries of Defence for project or programme contracts.
European Collaboration: Subset of Collaboration; agreement by at least two EU Member States Ministries of Defence for project or programme contracts. Possible non-EU partners share in such contracts is lower than 50%.
| Collaborative R&T | €325 Million |
| European Collaborative R&T | €239 Million |
| Collaborative R&T out of Total R&T | 13,0% |
| European Collaborative R&T out of Collaborative R&T | 73,7% |
| Average number of troops deployed | 97,800 |
| Deployable (Land) Forces | 378,200 |
| Sustainable (Land) Forces | 100,900 |
| Average Number of troops deployed out of pMS Military Personnel | 5% |
Average number of troops deployed: Average number of troops deployed throughout the year by all 26 EDA Participating Member States (All forces)
Deployable (Land) Forces: (Land) Forces troops prepared for deployed operations (the NATO 40% target).
Sustainable (Land) Forces: (Land) Forces troops undertaking or planned for sustained operations (the NATO 8% target).
Source: EDA
Publication date: 2007
To find out how your company can identify and secure procurement opportunities in the €200 billion European defence sector market, contact Jeffrey Strategic.
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