Ireland has moved to increase military spending, announcing on 1 October 2024 a record allocation of €1.35bn ($1.48bn) for defence in Budget 2025, marking a €100m increase from the previous year.
The funding will support projects, including delivering the new Airbus C295W aircraft.
Tánaiste and Minister for Defence Micheál Martin supported this budget allocation: “The record allocation of €1.35 billion in Budget 2025 demonstrates this government’s commitment to defence and those who serve our state. This funding will facilitate ongoing investment in our defence capabilities along with allowing crucial progress in the modernisation of the Defence Forces.”
A highlight of Budget 2025 is the capital funding component, which reached a historic high of €215m. This infusion of resources will directly contribute to defence projects, including military radar systems, subsea awareness programmes, and force protection equipment.
Notably, the budget also earmarks funds for the Air Corps to take delivery of the new Airbus C295W aircraft, an essential step in enhancing Ireland’s airlift capabilities.
Key components of the budget allocation include:
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By GlobalDataAn allocation of €469m for Permanent Defence Forces pay, which includes €13m aimed at recruiting a net total of 400 additional members, an increased advertising budget of €3.2m bolsters Defence Forces recruitment initiatives, and more than €6m is allocated for the recruitment of civilians.
In addition, €329m is dedicated to meeting the pension costs of Ireland’s Defence Forces Veterans and their dependents, while an additional €8m will support Air Corps fleet maintenance, airfield operations, and training costs.
Including the Airbus C295W aircraft further emphasises Ireland’s dedication to modernising its air capabilities. Other users include the Mexican Air Force.
The C295 medium transport aircraft has air-to-air refuelling capabilities. The C295W is designed to refuel turboprop aircraft and helicopters and can support special operations and search-and-rescue missions.
According to GlobalData’s “The Global Military Fixed Wing Aircraft Market 2024-2034” report, Airbus SE is anticipated to account for the fourth highest revenue share of $14.9bn in the European market over the forecast period.
As the Defence Forces continue to evolve, this record allocation in Budget 2025 will play a crucial role in shaping the future of Ireland’s military readiness and capabilities, reinforcing its commitment to ensuring national and regional security.
