Europe has long been seen as the closest region to achieving the Sustainable Development Goals, or SDGs, the 17 global targets adopted by all United Nations member states in 2015 to end poverty, reduce inequality, and protect the planet by 2030. Since 2019, European countries have consistently topped SDG performance rankings. But cracks are beginning to show in the political and fiscal architecture needed to deliver them.
But new analysis from the Europe Sustainable Development Report 2026 warns that rising defense spending and cuts to development budgets are stalling progress on the SDGs and shifting strategic priorities away from sustainable development. The report highlights that the region’s historic role as a global leader in poverty reduction, climate resilience, and social welfare is increasingly under pressure.
It is no secret that Europe is pivoting toward security and defense. Germany’s defense budget is set to reach €82.7 billion ($98.2 billion) in 2026, accompanied by plans to recruit up to 10,000 additional soldiers. Italy and the United Kingdom are also expanding defense outlays.
About the author
Jesse Chase-Lubitz
Jesse Chase-Lubitz covers climate change and multilateral development banks for Devex. She previously worked at Nature Magazine, where she received a Pulitzer grant for an investigation into land reclamation. She has written for outlets such as Al Jazeera, Bloomberg, the Organized Crime and Corruption Reporting Project, and The Japan Times, among others. Jesse holds a master’s degree in Environmental Policy and Regulation from the London School of Economics.
