Andres.My serious opinion is that this is all fuss about nothing. For example if you count together military forces of European Union the totals are:

Active military personnel: 1,536,274
Reserve force: 4,549,222
Paramilitary: 798,800

total: 6,884,296

Just for reference USA

Active military personnel: 1,445,000
Total Reserve: 833,616

total: 2,278,616

So in matter of fact i think that EU countries have too many military personnel compared to what their task is.Surprising isnt it? Military is among things that European integration might benefit us all. By cutting off elements that are overlapping i am quite sure that EU area could have a military that could have serious long distance strike capabilities, while being more then able to defend our own area and i dont think we would need to even use more money then we are already using. To me scaring people with conventional attack of Russia is more then far fetched. Yes, they have over 1 million active soldiers and 20 million in reserve, but like you pointed out in your post. You need money to wage wars.With a GDP size of Spain, how prolonged conflict you think Russia can maintain with any large size mobilisation? China on the other hand is huge economical power already, but when you look at their military, you can see that they are not even considering starting an arms race with anyone as they dont simply have need for such thing.They rather get more rich, which sounds prettty reasonable.