Weakened NATO Readiness as a Result of the European Union's Economic and Monetary Union
Abstract
Are the domestic economic adjustments being made by the European Union (EU) members of NATO -- required for integration into the common currency -- causing a weakened state of readiness for NATO? EU members of NATO have decreased their defense budgets by 30 percent since the end of the Cold War. This extensive reduction in defense spending is causing a negative impact on NATO readiness and is just beginning to be felt. NATO is now realizing that it is at, or past, its "break even" point. NATO's current readiness status is characterized by satisfactory funding for current operations, a somewhat less than adequate share of its members' defense budgets going towards modernization and acquisition of systems increasing interoperability, and a moderately declining defense budget. Most EU members seeking monetary union will be accepted for integration beginning in 1999, a few will not. However, EU members still have a long way to go -- fiscal austerity will continue to dominate European economic policies for the next decade to reduce excessive debt. Reductions in military spending have come in the form of reduced personnel levels and a significantly curtailed modernization and improved interoperability effort. Additional strains on dwindling defense expenditures are induced by continued operations in Bosnia and planned NATO expansion. Finally, Europe is still in the midst of a recession that is causing inflation and high unemployment -- strains on national budgets that will ultimately be felt by the defense budgets. Barring the occurrence of a major European economic disaster, the EU will achieve economic and monetary union by 2008 with its current 15 members. The union also will increase in size as it expands into Central and Eastern Europe. As this process unfolds, "the United States will increasingly remind Europe of its duty to take on political responsibilities commensurate with its position as a world economic power."
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 1998
- Accession Number
- ADA527826
Entities
People
- Mark D. Engeman
Organizations
- Marine Corps University