Defence Data Booklet 2012 Web

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More information on the European Defence Agency is available at: www.eda.europa.eu

ISBN: 978-92-95075-13-9

ISSN: 1831-9513

doi: 10.2836/19546

European Defence Agency, 2013

For reproduction or use of this material, permission must be sought directly from the copyright holder.

Responsible editor :Eric Platteau

Printed in Belgium


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Introduction

The European Defence Agency collects defence data on

an annual basis. The Ministries of Defence of the Agencys

27 participating Member States (pMS)1provide the data.

EDA acts as the custodian of the data and publishes the

aggregated figures in this booklet. The data are broken

down, based on a list of indicators approved by the Agencys

Ministerial Steering Board. This list has four sections, rep-

resented in the headings of the booklet:

General: macro-economic data to show how defence

budgets relate to GDP and overall government spending.

Reform:major categories of defence budget spend-

ing personnel; investment, including R&T; operation

and maintenance and others to show what defence

budgets are spent on.

European collaboration:for defence equipment procure-

ment and R&T to show to what extent the Agencys pMS

are investing together.

Deployability:military deployed in crisis management

operations to show the ratio between deployments and

total military personnel.

In November 2007, the Ministerial Steering Board approved

four collective benchmarks for investment:

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

total defence spending

European collaborative equipment procurement:35%

of total equipment spending

Defence R&T: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 totalsum spent by all pMS together.

They are voluntary: turning them into national targets is

optional. There are no timelines for realising these bench-

marks.

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.

1. All EU Member States except Denmark. Data in this publication does not include Croatia which became the 27thEDA Member State on 1 July 2013.


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EDA pMS Aggregated Defence Data 2012The figures refer to the total for all EDA 26 pMS1and if not otherwise stated, they are nominal.

Total defence expenditure continues to decrease

In 2012, total defence expenditure of the 26 EDA pMS

amounted to 189.6 billion - a reduction of 1.1 billion

or 0.6% compared to 2011. It represented approximately

1.50% of their total GDP and 3.04% of their total government

expenditure, both values being the lowest since 2006. In

real terms2, total defence expenditure has been decreasing

since 2006. During the period from 2006 to 2011, it dropped

by 21 billion or almost 10% and between 2011 and 2012 it

reduced further by almost 3%.

Equipment procurement increases, but R&Dexpenditure reduces

Personnel-related expenditure decreased by almost 3%

from 2011 to 2012 and reached its lowest level since 2006

( 95.7 billion). Nevertheless, it continues to account for

over 50% of total defence expenditure. The second biggest

component operation and maintenance expenditure

also decreased by almost 3% and accounted for 23.7%

( 44.8 billion) of total defence expenditure. On the other

hand, after a sharp decrease in 2011, defence investment,

comprising equipment procurement and R&D expenditure,

increased by over 5% in 2012 to reach the same level it was

in 2006 ( 39.0 billion or 20.6% of total expenditure). But the

two components of investment moved in different direc-

tions: while equipment procurement increased by 17% to

34.2 billion (18.0% of total expenditure), close to the high-

est level achieved in 2010, R&D expenditure experienced

the sharpest decrease since 2006 (-38%) and amounted

to 4.8 billion (2.5% of total expenditure), half its 2006

value. As for R&T3, after a slight increase in 2011, it reduced

to 1.93 billion (1.02% of total expenditure), both being the

lowest values since 2006.

Collaboration: increases in procurement

but decreases in R&T

2012 data shows a significant decrease in collaborative

expenditure. This is partially due to the fact that one EDA

pMS was not able to provide data on collaboration this

year. If aggregated data of the 25 pMS for which collabora-

tive figures are available is compared, between 2011 and

2012 collaborative equipment procurement increased by

1. Data in this publication does not include Croatia which became the 27th EDA Member State on 1 July 2013, and Denmark which is not an EDA Member State.

2. In order to measure real growth and ensure a real comparison between years, inflation needs to be taken into account. Thus, data from 2006 to 2011

has been inflated to 2012 economic conditions (Source of deflator: European Commission ECFIN based on weight of EU 27).

3. R&T is a subset of R&D which includes only basic research, applied research and technology demonstration, leaving out expenditure for demonstration

or development for which a decision to procure has been taken.


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10% while European collaboration increased by 16.5% and

accounted for 95.5% of total collaborative equipment pro-

curement. As for R&T, expenditure on collaborative projects

and programmes decreased by almost 15% during the same

period. European collaborative R&T expenditure experienced

an even sharper decrease of 38% and accounted for 67.6%

of total collaborative R&T expenditure.

Number of military personnel continues to drop whileexpenditure and investment per military increases

2012 saw the sixth consecutive reduction in military person-

nel (77.5% of total staff working in defence, the lowest ratio

since 2006) and decreased by 6.3% to 1.45 million. On the

other hand, the number of civilian personnel increased for

the first time since 2006 by 12.8% to 422 315. Whilst military

personnel numbers reduced, defence expenditure per military

increased by over 6% reaching 130 457. Defence investment

per military also increased by over 12% and stood at 26 821.

Reduction in troops deployed and in costs

of operations

As regards deployed operations outside the EU territory,

similarly to the last three years, the average number of

troops deployed decreased both in absolute terms (from 53

744 to 49 550) and as a share of military personnel (from

3.5% to 3.4%) and is now at its lowest level since 2006.

For the first time since 2006, costs related to deployed

operations decreased by 8% to 10.8 billion or 5.7% of

total defence expenditure. Operations costs per military

deployed also marginally decreased for the first time and

stood at 217 000 in 2012.

Progress made on one out of four collectivebenchmarks

In 2007, EDA pMS agreed on a set of four collective bench-

marks for investment. There is no obligation in terms of time-

line or adoption of these benchmarks into national targets.

In 2012, only one of the four indicators made progress

towards the benchmarks. Due to an increase in defence

equipment procurement expenditure, the proportion of

investment (equipment procurement and R&D) of total

defence expenditure increased from 19.4% to 20.6% thus

exceeding the agreed target of 20%. After an increase in

2011, the share of R&T expenditure in total defence expendi-

ture decreased to its lowest level since 2006: 1.02% (the

benchmark is 2%).

Due to incomplete collaborative data, it is not possible to

measure progress towards the two other benchmarks: Euro-

pean collaborative equipment procurement as a percentage

of total equipment procurement (the benchmark is 35%)

and European collaborative defence R&T as a percentage

of total defence R&T (the benchmark is 20%).


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GDP

Overall Government Expenditure

Defence Expenditure

. Revised data.

GENERAL - Macro Economic DataGDP, Overall Government Expenditure and Total Defence Expenditure

Billions

ofEuros

14 000

12 000

10 000

8 000

6 000

4 000

2 000

0

s11 316

s5 303

s201

s12 272

+1.7%

s5 729

+3.7%

s201

-1.3%

s11 584

-5.6%

s5 858

+2.3%

s194

-3.6%

s12 046

+4.0%

s6 047

+3.2%

s194

-0.3%

s12 072

+6.7%

s5 525+4.2%

s204

+1.5%

s12 411

+3.0%

s6 072

+0.4%

s191 1-1.5%

s12 653+2.0%

s6 232

+2.6%

s190

-0.6%


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GDP

Overall Government Expenditure

Defence Expenditure

. In order to measure real growth and ensure a real comparison between years, inflation needs to be

taken into account. Thus, data from to has been inflated to economic conditions

(Source of deflator: European Commission ECFIN based on weight of EU ).

GENERAL Macro Economic DataGDP, Overall Government Expenditure and Total Defence Expenditure real comparison1

Billions

ofEuros

14 000

12 000

10 000

8 000

6 000

4 000

2 000

0

s12 178

s5 707

s216

s12 650+3.9%

s5 790

+1.4%

s214

-1.2%

s12 835+1.5%

s5 992

+3.5%

s211

-1.5%

s12 304

-4.1%

s6 222

+3.9%

s206

-2.1%

s12 503

+1.6%

s6 276

+0.9%

s201

-2.6%

s12 705+1.6%

s6 216

-0.9%

s195

-2.8%

s12 653-0.4%

s6 232

+0.2%

s190

-2.9%


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GENERAL Macro Economic DataDefence Expenditure in Current and Constant1Prices

Billions

ofEuros

s

s

s

s

s

s

s

s

s

s

ss

s

s

220

215

210

205

200

195

190

185

Current Prices

Constant Prices (2012)

. Data from to has been inflated to economic conditions (Source of deflator: European Commission ECFIN

based on weight of EU ).

. Revised data.


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GENERAL Macro Economic DataDefence Expenditure as % of GDP and as % of Overall Government Expenditure

..

.

.. .

.

. ....

..

4.0%

3.5%

3.0%

2.5%

2.0%

1.5%

1.0%

Defence Expenditure as a % of Total General Government Expenditure

Defence Expenditure as a % of GDP

. Revised data.


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GENERAL Macro Economic DataExpenditure per Capita

E

uros

30 000

25 000

20 000

15 000

10 000

5 000

0

s23 217

s10 881

s413

s24 648

+6.2%

s11 281+3.7%

s417

+1.0%

s24 910

+1.1%

s11 628+3.1%

s409

-1.9%

s23 398

-6.1%

s11 833+1.8%

s392

-4.1%

s24 280

+3.8%

s12 187

+3.0%

s390

-0.5%

s24 959

+2.8%

s12 212

+0.2%

s383 1-1.7%

s25 374

+1.7%

s12 497

+2.3%

s380

-0.9%

GDP per Capita

Government Expenditure per Capita

Defence Expenditure per Capita

. Revised data.


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REFORM Defence Expenditure BreakdownDefence Expenditure Breakdown in absolute values

Personnel

Operation and Maintenance

Investment (Equipment Procurement and R&D)

Other expenditure (including Infrastructure)

. Revised data.

Billions

ofEuros

120

100

80

60

40

20

0

-2.8%s44.8

+5.4%s39.0

+0.5%s10.0

-2.8%s95.7

+3.6%s45.2

-13.8%s37.0

+19.2%s10.0

-0.1%s98.5

-1.0%s

43.7+4.8%s42.9

-21.8%s8.4

+0.3%s98.7

+2.0%

s44.1-2.6%s40.9

+19.5%s10.7

-8.2%s98.4

-7.8%

s43.2+0.3%s42.0

-4.3%s8.9

+1.1%s107.2

+8.1%

s46.9+7.7%s41.9

+13.9%s9.3

-4.2%s106.0

s43.4

s38.9

s8.2

s110.6


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REFORM Defence Expenditure BreakdownDefence Expenditure Breakdown in percentages

Personnel

Operation and Maintenance

Investment (Equipment Procurement and R&D)

Other expenditure (including Infrastructure)

. Revised data.

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

53.2%

21.5%

20.9%

4.4%

50.5%

23.7%

20.6%

5.3%

51.7%

23.7%

19.4%

5.2%

51.0%

22.6%

22.1%

4.3%

50.7%

22.7%

21.1%

5.5%

51.9%

23.0%

20.5%

4.6%

55.0%

21.6%

19.4%

4.1%

s201 Bln s204 Bln s201 Bln s194 Bln s194 Bln s191 Bln s190 Bln


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REFORM Investment BreakdownDefence Equipment Procurement and R&D/R&T1Expenditure in absolute values

Billions

ofEuros

45

40

35

30

25

20

15

10

5

0

Total Investment

Equipment Procurement

R&D

R&T

s38.92

s41.90

+7.7%

s42.02

+0.3%

s40.92

-2.6%

s42.87

+4.8% s36.96s38.97

s4.81

-13.8%

+5.4%

-38.2%

s32.24

+10.7%

s33.27

+3.2%

s32.52

-2.3%

s34.31

+5.5% s29.17

s34.16

s1.93

-15.0%

+17.1%

-10.0%

s9.66

-1.3%

s8.75

-9.5%

s8.40

-4.0%

s8.56

+1.9%

s7.79

-9.0%s2.54

-4.3%

s2.48

-2.5%

s2.26

-8.9%

s2.08

-8.0%

s2.15

+3.4%

s29.13

s9.79

s2.66

. R&T is a subset of R&D.


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REFORM Investment BreakdownDefence Equipment Procurement and R&D/R&T as % of Total Defence Expenditure

Defence Equipment Procurement R&D (Includes R&T) Other Defence Expenditure

. Revised data.

80.6%

4.9% (1.32%)

14.5%

19.4%

78.9%

4.3% (1.16%)

16.8%

21.1%

79.5%

4.7% (1.24%)

15.8%

20.5%

79.1%

4.3% (1.23%)

16.5%

20.9%

77.9%

4.4% (1.07%)

17.7%

22.1%

80.6%

4.1% (1.13%)

15.3%

19.4%

79.4%

2.5% (1.02%)

18.0%

20.5%


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REFORM PersonnelNumber of Military and Civilian Personnel

2 425 169

2 294 2742 234 487

2 094 8722 009 907

1 925 4651 875 343

-5.4%

-5.2%-1.7%

-8.6%-3.9%

+12.8%

-5.7%

-5.3%-2.0% -7.3%

-2.9% -4.3% -6.3%

-2.6%-6.2%

-4.1%-4.2%

-2.6%

2 500 000

2 000 000

1 500 000

1 000 000

500 000

0

1 940 342

484 827

1 836 882

457 392

1 800 707

433 780

1 668 537

426 335

1 620 188

389 719

1 551 038

374 427

1 453 028

422 315

Military Personnel

Civilian Personnel


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REFORM Expenditure per MilitaryDefence Expenditure and Investment (Equipment Procurement and R&D) per Military

Defence Expenditure per Military

Defence Investment per Military

. Revised data.

E

uros

140 000

120 000

100 000

80 000

60 000

40 000

20 000

0

s103 654

s20 058

s111 136

+7.2%

s22 812

+13.7%

s111 850

+0.6%

s23 333

+2.3%

s116 324

+4.0%

s24 522

+5.1%

s119 455

+2.7%

s26 458

+7.9%

s122 925 1+2.9%

s23 829

-9.9%

s130 457

+6.1%

s26 821

+12.6%


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REFORM OutsourcingOutsourcing absolute values and percentages

Outsourcing Remainning Defence Expenditure

93.0%

7.0%

92.7%

7.3%

92.7%

7.3%

93.0%

7.0%

92.9%

7.1%

94.0%

6.0%

92.1%

7.9%

Total

outsourcing:

14.1 bln

Total

outsourcing:

15.4 bln

Total

outsourcing:

13.4 bln

Total

outsourcing:

14.5 bln

Total

outsourcing:

12.0 bln

Total

outsourcing:

14.1 bln

Total

outsourcing:

13.8 bln


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EUROPEAN COLLABORATION Equipment ProcurementNational and Collaborative Defence Equipment Procurement absolute values

s6.7

s29.1

s34.2

s29.2

s34.3

s32.5s33.3s32.2

s6.8s8.1 s8.2 s7.7 s7.9

s6.0

National Defence Equipment Procurement

European Collaborative Defence Equipment Procurement

Other Collaborative Defence Equipment Procurement

. Partial: one pMS not able to provide data.

Billion

s

ofEuros

30

25

20

15

10

5

0

s0.27

s28.15

s0.57

s21.26

s0.41

s26.61

s1.09

s24.29

s7.07

s1.00

s25.20

s0.74

s25.40

s6.11s7.14 s7.29 s7.34

s5.74s6.08

s0.58

s22.47


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EUROPEAN COLLABORATION Equipment ProcurementNational and Collaborative Defence Equipment Procurement percentage breakdown

National Defence Equipment Procurement European Collaborative Defence Equipment Procurement

Other Collaborative Defence Equipment Procurement


77.1%

2.0%

20.9%

78.8%

2.3%

18.9%

75.8%

3.0%

21.2%

74.7%

3.3%

22.0%

72.9% 82.4%

2.0% 0.8%

25.1% 16.8%

77.6%

1.2%

21.2%


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EUROPEAN COLLABORATION R&TNational and Collaborative Defence R&T absolute values

National Defence R&T

European Collaborative Defence R&T

Other Collaborative Defence R&T

. Revised data.


Billion

s

ofEuros

2.5

2.0

1.5

1.0

0.5

0

s0.067

s1.728

s0.139

s0.049

s1.839

s0.260

s0.018

s1.813

s0.246

s0.032

s1.936

s0.290

s0.040

s2.027

s0.412

s0.045

s2.164

s0.333

s0.130

s2.272

s0.254

s2.66s2.54

s2.48s2.26

s2.08 s2.15

s1.93

s0.38 s0.38

s0.45

s0.32 s0.26 s0.31s0.21


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EUROPEAN COLLABORATION R&TNational and Collaborative Defence R&T absolute values

85.7%

1.4%

12.8%

87.3%

0.9%

11.8%

85.6%

2.3%

12.1%

85.5%

4.9%

9.6%

85.1%

1.8%

13.1%

81.8%

1.6%

16.6%

National Defence R&T European Collaborative Defence R&T Other Collaborative Defence R&T

. Revised data.


89.3%

3.5%

7.2%


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DEPLOYABILITY Troops DeployedAverage Number of Troops Deployed

4.3% 4.2% 4.5% 4.1% 4.1% 3.5% 3.4%

% of Military Personnel

Number of Military Personnel

Average Number of Troops Deployed

2 000 000

1 800 000

1 600 000

1 400 000

1 200 000

1 000 000

800 000

600 000

400 000

200 000

0

1 836 882

77 880

1 800 707

80 177

1 668 537

67 767

1 453 028

49 550

1 551 038

53 744

1 620 188

66 313

1 940 342

83 310


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DEPLOYABILITY Deployable and Sustainable (Land) ForcesNumber of Deployable and Sustainable (Land) Forces

Deployable (Land) Forces

Sustainable (Land) Forces

% of Military Personnel

. Revised data.

500 000

450 000

400 000

350 000

300 000

250 000

200 000

150 000

100 000

50 000

0

450 117

106 402

449 702

108 802

425 824

110 814

443 108

106 754

464 574

125 237

444 681

110 482

426 704

99 71115.1%

22.0% 24.2%

25.8%

26.6% 27.8% 27.5% 30.9%

7.5%7.1%6.6%6.4%7.0%

6.0%

DEPLOYABILITY O i C


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DEPLOYABILITY Operations CostsOperations Costs per Military Deployed and Total Operations Costs

Operations Costs per Military Deployed

Total Operations Costs

220

200

180

160

140

120

100

80

60

40

20

0

79

111 120

145 157

218 217

6 613 Mln

8 667 Mln 9 653 Mln

9 826 Mln

10 407 Mln

11 700 Mln 10 761 Mln

Thousands

ofEuros

BENCHMARKS


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BENCHMARKSDefence Equipment Procurement and R&D Expenditure as % of Total Defence Expenditure

Defence Equipment Procurement and R&D Expenditure

Other Defence Expenditure

. Revised data.

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

80.6%

19.4%

79.5%

20.5%

79.1%

20.9%

78.9%

21.1%

77.9%

22.1%

80.6%

19.4%

79.4%

20.6%

80.0%

20.0%

Benchmark

BENCHMARKS


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BENCHMARKSEuropean Collaborative Defence Equipment Procurement as % of Total Equipment Procurement

European Collaborative Defence Equipment Procurement

Other Defence Equipment Procurement


100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

79.1%

20.9%

81.1%

18.9%

78.8%

21.2%

78.0%

22.0%

78.8%

21.2%

74.8%

25.2%

83.2%

16.8%

Benchmark

65.0%

35.0%

BENCHMARKS


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BENCHMARKSDefence R&T Expenditure as % of Total Defence Expenditure

Defence R&T Expenditure

Remaining Defence Expenditure

. Revised data.

100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

98.68%

1.32%

98.76%

1.24%

98.0%

Benchmark

2.0%

98.98%

1.02%

98.87%

1.13%

98.93%

1.07%

98.84%

1.16%

98.77%

1.23%

BENCHMARKS


29/32

BENCHMARKSEuropean Collaborative Defence R&T as % of Total Defence R&T

European Collaborative Defence R&T

Other Defence R&T

. Revised data.


100%

90%

80%

70%

60%

50%

40%

30%

20%

10%

0%

Benchmark

90.4%

9.6%

86.9%

13.1%

83.4%

16.6%

87.2%

12.8%

88.2%

11.8%

87.9%

12.1%

92.8%

7.2%

80.0%

20.0%

Additional Notes on the DataAdditional Notes on the Data


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Additional Notes on the Data

EDA receives the data from the Ministries of Defence of

the 27 pMS. On occasions the data can be revised and this

may have an impact on the overall aggregated figures. In

order to have the most up-to-date data please check EDAs

website for updates:

http://www.eda.europa.eu/

Data on GDP, General Government Expenditure andPopulation have been collected from Eurostat. However,

this data is occasionally revised which may impact some

of the data calculated by EDA.

The data provided is at aggregate level which can

produce different figures from other sources due to

rounding.

For some spending categories, a margin of error exists

as accounting systems in the pMS differ. Nevertheless,

the presented data represents the best publicly avail-

able figures.

Comparisons are made for 2006 to 2012. It should be

noted that more firm trend analysis will only be possible

after several years of data-gathering.

Significant changes in the exchange rates with the Euro

has had a considerable impact on the 2008 data; the

lower amount of defence expenditure is partly caused by

significant drops of some of the pMS' currency exchange

rates to the Euro.

Additional Notes on the Data

Definitions


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DefinitionsData collection is based on definitions approved by the pMS. The definitions below have been shortened

and edited for this publication.

Macroeconomic data:GDP, General Government Expendi-ture and Population are based on data from Eurostat.

Total defence expenditure is defined as total Minis-try of Defence (MoD) expenditure and defence relatedexpenditure from other sources (other Ministries specialbudgetary lines).

Civilian personnel:the authorised strength of all civilianpersonnel on 31 December of each year employed by allmilitary establishments and the armed forces.

Military personnel: the authorised strengths of all activemilitary personnel on 31 December of each year.

Personnel expenditure:all personnel-related expendi-ture for military and civilian personnel, including fromnon-MoD sources.

Defence equipment procurement expenditure:expendi-ture for all major equipment categories.

Research and Development (R&D):any R&D programmesup to the point where expenditure for production of equip-ment starts to be incurred.

Research and Technology (R&T): expenditure for basicresearch, applied research and technology demonstrationfor defence purposes. It is a subset of R&D.

Investment: Equipment procurement and R&D (includingR&T) expenditure.

Operation and Maintenance (O&M) expenditure:covers

O&M (spare parts and supplies) of major equipment, otherequipment and supplies, and costs related to maintainingutilities and infrastructure.

Other expenditure:all other expenditure that cannot beattributed to any of the above categories.

Outsourcing:defence expenditure for which services havebeen contracted at central level with service suppliersfrom outside the MoD and/or Armed Forces.

European Collaboration (a subset of Collaboration):agreement by at least two EU Member States Ministries ofDefence for project or programme contracts. Possible non-

EU partners share in such contracts is lower than 50%.

Other collaborative expenditure: all collaborative expendi-ture that does not fall under the European Collaborationdefinition.

Average number of troops deployed:average number oftroops deployed throughout the year (all Armed Forces).

Deployable (land) forces:(land) forces troops preparedfor deployed operations (the NATO 50% target).

Sustainable (land) forces: (land) forces troops under-taking or planned for sustained operations (the NATO10% target).

Operations costs: all national expenditure to cover incre-mental (extra) costs linked to deployed operations outsidethe EU Member States territory.


32/32

European Defence Agency

Rue des Drapiers 17-23

B-1050 Brussels - Belgium

www.eda.europa.eu

Tel +32 2 504 28 00

Fax +32 2 504 28 15

[email protected]

www.eda.europa.eu QU-AB-13-002

-EN-C

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