BRUSSELS, May 2 (Xinhua) -- Driven by a surge in European defense budgets, global military expenditure soared to a record 2.72 trillion U.S. dollars in 2024, according to the Stockholm International Peace Research Institute (SIPRI).

Europe spearheaded the upward trend, with defense expenditures skyrocketing 17 percent to 693 billion dollars -- the sharpest regional increase and the highest level since the end of the Cold War.

Analysts say the surge in military spending reflects Europe's growing security anxiety, driven by both the pullback of U.S. security commitments to the region and a push by European nations to reduce reliance on Washington and strengthen their own defense capabilities amid growing global instability.

SPENDING SPIKES

According to the SIPRI, all European countries, except Malta, increased their military spending in 2024.

Ukraine's military spending surged to 64.7 billion dollars in 2024 -- a staggering 34 percent of its GDP -- the highest defense burden of any nation. Britain increased defense spending by 2.8 percent to 81.8 billion dollars while France boosted its defense budget by 6.1 percent to 64.7 billion dollars.

Germany's military spending surged by 28 percent to 88.5 billion dollars, making it the largest defense spender in Central and Western Europe and the world's fourth-largest; Sweden, in its first year as a NATO member, hiked defense spending by 34 percent to 12 billion dollars, reaching the bloc's 2 percent threshold of GDP; and Poland increased its budget by 31 percent to 38 billion dollars, amounting to 4.2 percent of its GDP.

"The latest policies adopted in Germany and many other European countries suggest that Europe has entered a period of high and increasing military spending that is likely to continue for the foreseeable future," said Lorenzo Scarazzato, researcher with the SIPRI's Military Expenditure and Arms Production Programme.

U.S. PRESSURE

All 32 NATO members increased defense budgets in 2024, according to the SIPRI, with 18 countries meeting or exceeding the bloc's 2 percent of GDP target. Total NATO spending reached 1.5 trillion dollars, accounting for 55 percent of global military expenditure.

The surge reflects Europe's growing unease about the reliability of U.S. security guarantees.

In February, U.S. Defense Secretary Pete Hegseth told his NATO member counterparts that Washington would no longer focus primarily on European security, urging the continent to take greater responsibility for military aid to Ukraine.

The sharp rise in military spending also comes amid renewed pressure from Washington. In his second term, U.S. President Donald Trump has doubled down on earlier demands, urging NATO members to raise defense spending to 5 percent of their GDP -- more than double the alliance's current benchmark.

Speaking at a press conference in January, Trump declared, "I think NATO should have 5 percent," echoing his first-term criticisms that Europe, particularly Germany, was underinvesting in its own defense. He also warned of a possible U.S. troop withdrawal from Europe if the bloc fails to meet the higher targets.

The rhetoric has stirred unease across the continent. NATO Secretary-General Mark Rutte acknowledged the growing expectations, depicting the 2 percent goal as "a floor, not a ceiling" and calling for European nations to "turbocharge" their defense efforts in light of evolving threats.

ING, a think tank focusing on the global economy, said in a recent analysis that early U.S.-Russia contacts over a possible Ukraine peace deal, along with U.S. Vice President J.D. Vance's criticism of Europe at the Munich Security Conference, have heightened pressure on European countries to rearm.

"Latest events in the Oval Office have only increased this sense of urgency," it noted.

CHALLENGES AHEAD

Amid growing transatlantic uncertainty, Europe's long-standing pursuit of strategic autonomy has taken on new urgency.

The EU's Strategic Agenda 2024-2029 highlights defense as a top priority. In March, the European Commission released "White Paper for European Defence - Readiness 2030," outlining measures to address defense capability gaps and strengthen the bloc's arms industry through increased joint procurement.

Earlier, European Commission President Ursula von der Leyen unveiled an 800 billion-euro (904.69 billion dollars) plan to boost EU defense spending. The initiative includes a 150 billion-euro (about 169.94 dollars) loan facility to help member states invest jointly in critical military assets.

While no longer an EU member, Britain continues to play a pivotal role in European defense. In February, British Prime Minister Keir Starmer pledged to raise defense spending from 2.3 percent to 2.5 percent of its GDP by 2027, and to 3 percent by 2029 if re-elected.

Seth Krummrich, retired U.S. colonel and current vice president of Client Risk Management at Global Guardian, told Al Jazeera that despite an expected increase in Europe's defense spending, "it was still somewhat shocking to see it unfold."

"Europe recognises the need to stand on its own and not rely as heavily on the United States," he said. "That's not to say the United States will not support Europe, but the 'guaranteed certainty' of U.S. support is no longer felt."

Think tank ING also cautioned that from a public financing perspective, more defense spending in the eurozone "couldn't come at a worse time" and that countries like France, Belgium and Italy are already under the EU's excessive deficit procedure, struggling to bring deficits below 3 percent of GDP.

"Increasing defence spending to a higher NATO target will therefore be a challenge, especially as quite a few of the high-deficit countries already struggle to meet the current 2 percent target," it said.