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Climate and Weather

Europe’s Rising Military Spending Threatens Climate and Welfare Goals, Economists Warn

Last updated: June 25, 2025 3:17 pm
Sana Mustafa
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Brussels : (June 25) As European nations commit to ramping up military spending under NATO’s push for 2% of GDP defense budgets, economists and environmental experts warn that this reallocation could undermine funding for urgent climate action and vital social programs.

The NATO directive, championed especially by Eastern European and Baltic states, is seen as a response to mounting geopolitical tensions, including the war in Ukraine and growing concerns over Russia and China. However, leading economists argue that this approach overlooks the long-term threats posed by environmental collapse and social instability risks that, they say, are equally pressing to national and global security.

“The real threat to Europe’s future may not come from borders, but from burning forests and broken healthcare systems,” said Dr. Livia Schmitt, an economist with the Climate Security Initiative. She emphasized that surging military budgets risk sidelining critical investments in decarbonization, infrastructure, public health, and education.

According to a recent analysis, if current pledges are honored, military budgets across Europe could rise by over €150 billion annually funds that might otherwise be channeled into transitioning away from fossil fuels or expanding green public transport.

Critics also argue that security planning is increasingly being framed in narrow military terms, ignoring how climate change, inequality, and migration crises drive instability.

As NATO leaders prepare to meet for the alliance’s annual summit next month, debates around security spending priorities and their broader social costs are likely to intensify.

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