Defence Ministers approved on 19 November 2024 the 2024 Coordinated Annual Review on Defence (CARD) report — the EU’s ‘State of the Union’ on defence. The review identifies actionable collaborative opportunities for Member States to develop critical military capabilities together. For the first time, the adoption of the report is combined with the signature of letters of intent by Member States in four areas: integrated air and missile defence; electronic warfare; loitering munitions; and a combat surface vessel.
In addition, the European Defence Agency released data showing that Member States’ defence expenditure is set to reach €326 billion, which represents 1.9% of EU GDP in 2024. Compared to 2021, before Russia’s war of aggression against Ukraine, spending this year is up by more than 30%.
The 2024 CARD report, produced by the European Defence Agency (EDA) in coordination with the European External Action Service (EEAS) and the EU Military Staff (EUMS), was approved by Ministers of Defence during the EDA Steering Board.
Head of the European Defence Agency, High Representative/Vice-President, Josep Borrell said: “The 2024 CARD Report is clear: national efforts, while indispensable, are not enough. The geopolitical landscape makes our cooperation, alongside increased spending, essential to be ready for high-intensity warfare. Member States’ total combined defence expenditure is set to reach 1.9% of EU GDP in 2024.
Additional funding for defence should be spent as efficiently as possible, and using part of it through collaborative European investments on capability needs would help. We have identified concrete collaborative opportunities — and Member States are taking action, as demonstrated by the four Letter of Intents signed by respective defence ministers to take concrete action together in those specific areas.”
FOUR COLLABORATIVE OPPORTUNITIES
The CARD process identifies a number of intersections and common ground between Member States’ defence plans, based on which EDA identified collaborative opportunities. For the first time, the adoption of the CARD Report is combined with the signature of political letters of intent by a considerable number of Member States. This new development highlights that Member States are interested to work together on developing these military capabilities. The scope of these letters of intent ranges from short-term joint procurement, through medium-term modernisation and upgrades, to long-term development of future capabilities. These could be implemented through EDA or as Permanent Structured Cooperation (PESCO) projects.
EDA Chief Executive Jiří Šedivý said: “To become a credible security provider, the EU must develop strategic capabilities, including for high-intensity warfare scenarios. The collaborative opportunities will bring national policymakers, planners, and armament experts together to develop relevant military assets. These are in line with NATO priorities. EDA is ready to make these collaborative opportunities a reality.”
THE COLLABORATIVE OPPORTUNITIES EXPLAINED
Integrated Air and Missile Defence (IAMD) is crucial for protecting Europe’s critical infrastructure, urban areas, and military forces from an increasingly complex array of airborne threats, including ballistic missiles, cruise missiles, and unmanned aerial systems.
Electronic Warfare plays a critical role in modern conflicts, enabling the disruption of enemy communications and sensors while protecting friendly forces from detection and interference. This can ensure information dominance and safeguard national security.
Loitering Munitions are versatile systems that can hover over target areas and engage whenever necessary, combining intelligence-gathering with precision strikes. Recent military operations have all confirmed the disruptive potential of this capability.
European Combat Vessel (ECV) is the common name to a multipurpose modular surface combat vessel. As it is a large peninsular surrounded almost entirely by sea and with more than 80% of its trade dependent on maritime transport, Europe needs strong capabilities for protecting its waters, while being also able to respond to conflicts abroad.
DEFENCE SPENDING TO REACH 1.9% OF EU GDP IN 2024
European Defence Agency data shows that EU Member States are closing the gap in 2024 towards the NATO 2% guideline, as Member States’ total combined defence expenditure is set to reach 1.9% of EU GDP.
This is possible thanks to a more than 30% increase in defence spending compared to 2021, with defence spending in 2024 estimated to have reached €326 billion, exceeding earlier projections. In 2024, Member States are also expected to spend more than €100 billion on investment, which goes beyond the agreed target of dedicating 20% of defence, in line with their commitment under the Permanent Structured Cooperation (PESCO).
Additionally, 10 Member States are projected to allocate more than 30% of their total defence expenditure to investments. Investments in researching, developing, and procuring new defence capabilities are expected to rise from around €59 billion in 2021 to €102 billion in 2024