Defence Data 2007

European Defence AgencyBuilding Capabilities for a Secure Europe

1

I n t r o d u c t I o n

The European Defence Agency is collecting defence data on an annual basis. The Ministries of Defence of the Agency’s 26 participating Member States (all EU Member States except Denmark) provide the data and EDA acts as the custodian of these. The numbers presented in this brochure are the collective figures represen-ting sums of the national data collected.The statistics are broken down, based on a list of indicators approved by the Agency’s Ministerial Steering Board. This list has four sections, represented in the headings of the data presented in this brochure:

General■■ : macro-economic data to show how defence budgets relate to GDP and overall government spending; Reform■■ : major categories of defence budgets spending – personnel; investment, including research & technology; operations & maintenance and others – to show on what the defence budgets are spent; European collaboration■■ : for equipment procurement and R&T to show to what extent the Agency’s participating Member States are investing together; Deployability■■ : military deployed in crisis management operations to show the ratio between deployments and the total number of military.

In November 2007 the Ministerial Steering Board approved four collective bench-marks for investment:

Equipment procurement (including R&D/R&T): 20% of total defence ■■

spending; European collaborative equipment procurement: 35% of total equipment ■■

spending; Defence Research & Technology: 2% of total defence spending;■■

European collaborative Defence R&T: 20% of total Defence R&T spending.■■

These benchmarks are collective: they apply to the total sum spent by all partici-pating Member States together. They are voluntary in the sense turning them into national targets is optional. There are no timelines for realising these benchmarks.In its final section this brochure provides the results of the collective benchmarks.The definitions, used for the gathering of the data, and some general caveats are listed at the end of the brochure.

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0

3000

6000

9000

12000

15000

Defence ExpenditureOverall GovernmentExpenditure

GDP

€ 11,316

2006 2007

€ 12,072

€ 5,303

€ 201 € 204

€ 5,525

Billi

ons

of E

uros

+6,7%

+4,2%

+1,5%

GDP, Overall Government Expenditure and Defence Expenditure

GEnErAL – Macro Economic data

3

0

5000

10000

15000

20000

25000

Defence Expenditure per CapitaGDP per Capita

€ 21 256€ 22 780

+7,2 %

+1,2 %€ 412 € 417

2006 2007

Euro

s

GEnErAL – Expenditure per capita

GENERAL – Expenditure per Capita

4

€ 110,00

€ 38,80€ 43,30

€ 8,90

€ 106,00

€ 41,80€ 47,00

€ 9,20 0

20

40

60

80

100

120

OtherOperations and Maintenance

Investment(EquipmentProcurement,includingR&D/R&T)

Personnel

Billi

ons

of E

uros

2006 2007

-3,6%

+7,7%+8,5%

+3,4%

Defence Expenditure Breakdown in Volume of Money

rEForM – defence Expenditure Breakdown

5

Defence Expenditure Breakdown in Rounded-off Percentages

0

20

40

60

80

100

OtherOperations andMaintenance

Investment(EquipmentProcurement,includingR&D/R&T)

Personnel

Perc

enta

ge

2006 2007

€ 201 Bln € 204 Bln

55%

22%

19%

4%

52%

23%

20%

5%

rEForM – defence Expenditure Breakdown

6

Other:4,0%

Other:4,5%

2006 2007

Investment:19,4%

Investment: 20,5%

Operations & Maintenance

21,6%

Operations & Maintenance

23,1%Personnel:

55,0%Personnel:

51,9%

Defence Expenditure Breakdown in Exact Percentages

rEForM – defence Expenditure Breakdown

7

Equipment Procurement and R&D/R&T in Volume of Money

0

10

20

30

40

50

20072006

€ 29,1

EquipmentProcurement

R&D R&T(Subset of R&D)

Total Investment

€ 32,3+11,0%

-1,3%

-1,6%

+7,7%

€ 38,8€ 41,8

€ 9,672 € 9,545

€2,656 € 2,613

Billi

ons

of E

uros

rEForM – Investment Breakdown

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Other Defence Expenditure:80,6%

Other Defence Expenditure:79,5%

R&T:1,32%

R&T:1,28%

2006

R&D (Includes

R&T):4,8%

R&D (Includes

R&T):4,7%

Defence Equipment

Procurement:14,6%

19,4% 20,5%

Defence Equipment

Procurement:15,8%

2007

Equipment Procurement and R&D/R&T in Exact Percentages

rEForM – Investment Breakdown

9

Military and Civilian Personnel Numbers

0

500000

1000000

1500000

2000000

2500000

2006 2007

1 940 112

2 424 939 -5,4%

-5,7%

-5,3%

2 294 274

1 836 882

484 827457 392

Military Personnel Civil Personnel

rEForM - Personnel

10

0

20000

40000

60000

80000

100000

120000

€ 103 602

€ 20 002

€ 111 117

€ 22 795

2006 2007

Defence Spendper Military

Investment(Equipment Procurementand R&D per Military)

+7,2%

+13,9%

Defence Spend and Investment per Military

rEForM – Expenditure per Military

11

Other Defence Expenditure:

93,0%

Total Outsourcing 2006:€14,1 bln

Total Outsourcing 2007:€14,4 bln

Other Defence Expenditure:

92,9%

Outsourcing:7,0%

Outsourcing:7,1%

Outsourcing in Volume of Money and Percentages

rEForM – outsourcing

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€ 22,44

€ 6,08

€ 0,59

€ 25,45

€ 6,11

€ 0,740

5

10

15

20

25

30

OtherCollaborativeDefence EquipmentProcurement

EuropeanCollaborativeDefenceEquipmentProcurement

NationalDefenceEquipmentProcurement

Billi

ons

of e

uros

2006 2007

€ 29,1 € 32,3

National and Collaborative Equipment Procurement in Volume of Money

EuroPEAn coLLABorAtIon – Equipment Procurement

13

National and Collaborative Equipment Procurement in Percentages

National Defence Equipment Procurement:

77,1%

National Defence Equipment Procurement:

78,8%

Other Collaborative

Defence Equipment

Procurement: 2,0%

Other Collaborative

Defence Equipment

Procurement: 2,3%

European Collaborative

Defence Equipment

Procurement: 20,9%

European Collaborative

Defence Equipment

Procurement: 18,9%

2006 2007

EuroPEAn coLLABorAtIon – Equipment Procurement

14

0,0

0,5

1,0

1,5

2,0

2,5

Other Collaborative R&T Expenditure

EuropeanCollaborativeR&T Expenditure

National R&TExpenditure

€ 2,271 € 2,178

€ 0,347

€ 0,088€ 0,254

€ 0,131

Billi

ons

of e

uros

2006 2007

National and Collaborative Defence R&T in Volume of Money

EuroPEAn coLLABorAtIon – r&t

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National and Collaborative Defence R&T in Percentages

2006 2007

EuroPEAn coLLABorAtIon – r&t

National R&T Expenditure: 85,5%

European Collaborative R&T

Expenditure:9,6%

European Collaborative R&T

Expenditure:13,3%

Other Collaborative R&T

Expenditure:4,9%

Other Collaborative R&T

Expenditure:3,4%

National R&T Expenditure: 83,3%

16

0

500000

1000000

1500000

2000000 1 940 1121 836 882

83 300 77 900

Average Numberof Troops Deployed

Number of Military Personnel

2006 2007

Average Number of Troops Deployed in Figures

dEPLoYABILItY – Average number deployed

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Average Number of Troops in Percentages

dEPLoYABILItY – Average number deployed

Remaining Military Personnel:

95,7%

Remaining Military Personnel:

95,8%

Average Number of Troops Deployed:

4,3%

Average Number of Troops Deployed:

4,2%

2006 2007

18

0

20

40

60

80

100

Other DefenceExpenditure

Defence EquipmentProcurement & R&D

80,6% 79,5% 80,0%

19,4% 20,5% 20,0%

2006 2007 Benchmark

Defence Equipment (including R&D) as a Percentage of Total Defence Expenditure

BEnchMArks

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European Collaborative Defence Equipment Procurement as a Percentage of Equipment Procurement

0

20

40

60

80

100

79,1% 81,1% 65,0%

20,9% 18,9% 35,0%

2006 2007 Benchmark

Other DefenceExpenditure

Defence EquipmentProcurement & R&D

BEnchMArks

20

0

20

40

60

80

100

98,68% 98,72% 98,00%

1,32% 1,28% 2,00%

2006 2007 Benchmark

Defence R&T Spend Remaining Defence Expenditure

R&T as a Percentage of Defence Expenditure

BEnchMArks

21

European Collaborative R&T as a Percentage of R&T

0

20

40

60

80

100

Other DefenceR&T Expenditure

European CollaborativeDefence R&T spend

90,4% 86,7% 80,0%

9,6% 13,3% 20,0%

2006 2007 Benchmark

BEnchMArks

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Data collection is based on definitions approved by the participating Member States. These definitions have been shortened and edited for this publication.

Macroeconomic data: GDP, general government expenditure and population are based on data from ■■

Eurostat.Total defence expenditure: total Ministry of Defence expenditure and defence related expenditure ■■

from other sources (other Ministries special budgetary lines).Military personnel: authorised strengths of all active military personnel on 31 December of each ■■

year.Civilian personnel: authorised strength of all civilian personnel on 31 December of each year.■■

Personnel expenditure: 1) Pay and allowances paid to: military and civilian personnel. 2) Pensions ■■

– only if paid directly by the government (MoD or other State-owned institution) to: retired military and civilian employees.Defence equipment procurement expenditure: expenditure for all major equipment categories.■■

Research and Development (R&D): any R&D programmes up to the point where expenditure for ■■

production of equipment starts to be incurred.Research and Technology (R&T): a subset of R&D - expenditure for basic research, applied research ■■

and technology demonstration for defence purposes.Investment: equipment procurement and R&D (including R&T).■■

Operations and Maintenance (O&M) expenditure: covers O&M (spare parts and supplies) of ■■

major equipment; other equipment and supplies; and costs related to maintaining utilities and infrastructure.Outsourcing: defence expenditure for which services have been contracted at the central level with ■■

service suppliers from outside the MoD and/or Armed Forces.European collaboration: agreement by at least two EU Member States Ministries of Defence for pro-■■

ject or programme contracts. Possible non-EU partners share in such contracts is lower than 50%.Other collaborative expenditure: all collaborative expenditure that does not fall under the European ■■

collaboration definition.Other: all expenditure that cannot be attributed to another category.■■

Average number of troops deployed: average number of troops deployed throughout the year.■■

dEFInItIons

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EDA is receiving the data from the Ministeries of Defence of the 26 participa-■■

ting Member States. On occassions the data can be revised and this may have an impact on overall aggregate figures. In order to have the most up to date data please check EDA’s website for updates: http://www.eda.europa.eu

■■ Data on GDP, General Government Expenditure and Population numbers have been collected from Eurostat. However, this data is occassionaly revised which may impact some of the data used by EDA.

■■ The Data provided is at the aggregate level which can produce different figu-res from other sources due to rounding.

■■ For some spending categories a margin of error exists as accounting systems in the participating Member States differ. Nevertheless, the presented data provide the best publicly available figures.

■■ Comparisons are made for 2006 and 2007. It should be noted that more firm trend analysis will only be possible after several years of data gathering.

AddItIonAL notEs on thE dAtA

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T. +32(0)2 504 28 00

F. +32(0)2 504 28 15

www.eda.europa.eu

ppu@eda.europa.eu

Further statistical information and an overview

of EDA activities are available on our website:

http://www.eda.europa.eu

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