Defence expenditure

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Defence expenditure represents the financial effort that countries make in order to answer risks and threats to their fundamental interests in domestic and foreign policies. This indicator can be expressed in various ways: total value, relative to GDP or expenditure per capita. The total defence expenditure and the percentage of GDP dedicated to defence expenditure are determined by the operational level of the defence capability, international security engagements, political decisions and economic capacity. Although Romania allocates a higher percentage to defence than the mean values of European countries that are members of NATO, the nominal value is lower, which shows that economically Romania is not at a very high level. Defence expenditure per capita shows the effort that nations make for defence relative to their population, but also their real economic potential. While in the case of the European countries that are members of NATO the mean value is over 450 USD/capita, only Poland and the Czech Republic have nominal values that reach half of the mean value, while Romania reaches 1/3 (on the increase).

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