Understanding military expenditure of NATO countries

Understanding military expenditure of NATO countries

NATO and Russia are again at loggerheads concerning the Ukraine issue. Russia with its huge army is knocking at the doorsteps of Europe. The issue of who shoulders the responsibility of Europe’s defence is again at the fore. Looking critically at NATO budgeting, the US 3.52 per cent of its GDP on NATO’s defence. For the US, Europe is strategically important and hence bind by the NATO agreement US is required to help its allies. However, a debate has been arising in the US that if Europe really requires US military assistance. 

Stephen Walt in his piece in Foreign Affairs magazine citing Europe’s greater population, life expectancy and overall better economic development compared to Russia as a viable reason to let Europe have autonomy over their collective defence.[1] However, a compelling argument what US fears is that leaving Europe alone without a hegemon might mean a fragmented Europe, not fighting collectively but against each other which would mean strategic gain for Russia and loss for the US. A void will be left where outside powers might want to exploit for their interest.

Why is the United States of America still involved in European Security?

US cannot afford to lose its oldest and closest ally in times of power competition with rising China and resurging Russia. History, politics, culture and security ties have ensured that the United States of America and Europe would be close.[2] And thus even though there have been calls for raising European countries’ share into NATO budget, US has been conscious of not taking it too far.

On September 5, 2014, the member of NATO met to issue a declaration that contained NATO response measures to the unfolding crisis in Ukraine. First was the adoption of the Readiness Action Plan (RAP), which included a set of detailed security measures and military postures that needed to be taken on Europe’s eastern border. Second is the pledge by NATO members to make efforts and aim at spending 2 per cent of their respective Gross Domestic Product (GDP) on defence within a decade. Although the agreement is not binding it shows the seriousness of the Ukraine conflict and its effect on NATO. Also, due to domestic pressure, US now wants Europe to take up responsibility for Europe’s defence. Over the years NATO, monetarily speaking, has received very less attention. With crisis building up in the region it was necessary that something concrete need to be done. Although the membership has nearly doubled since 1990 military spending by Europeans has gone down by 28 per cent.[3] According to the International Institute for Strategic Studies, Germany’s defence spending has fallen by 4.3 percent since 2008 alone. In the same period, the United Kingdom has reduced its defence spending by 9.1 percent and Italy by 21 percent.[4] In 1995, U.S. defence expenditure accounted for 59 percent of overall NATO defence spending; in 2015, the rate is expected to be above 70 percent.[5] Donald Trump in 2018 warned of pulling out of NATO if member states do not increase their budget expenditure. Many hailed the harsh stand taken by him. Five years have passed since the change in power taken over Democrats. However, the demand for raising their contribution to NATO has remained the same albeit with less rhetoric. President Biden has re-emphasized his commitment towards the NATO allies and in the belief of collective defence.

North Atlantic Treaty Organisation (NATO) was signed in 1949 amidst the intensifying cold war with Russia. A military pact that not only survived the cold war but strengthened over the years. So, what does the member states contribute to strengthening NATO? According to Statista, US contribute most to the military budget of NATO. As the fighting between the European states took a break after the devastating Second World War, the cold war between Russia and US to rule over the world started taking shape. US with the inception of NATO took the initiative of European security. Keeping its interests in mind. Although European Union came into existence in 1993 it still has its separate armies and is collectively dependent on US for its security. The US contributes the largest share of NATO military budget as a result it also possesses a de facto veto in decision-making. But this has not always resulted in alignment of policy decisions. For example, during the Trump era, US unilaterally pulled out of JCPOA, which was not followed by EU and most recently the divergent takes in the Russia-Ukraine-NATO conflict in which Biden has called for more stringent action for example cutting off the Nor Stream gas pipeline, while France and other EU leaders are separately leading talk with Russian counterparts. This indicates that the continent which has already seen two devastating wars is keeping a fair amount of caution to not fall into war again. Germany had also warned Poland to not supply weapons to Ukraine.

We have to keep in mind that European peace is not what is important for US but providing security to keep its interests afloat. But have US strategy in Europe failed? As the military crisis started appearing in the European continent the stern response from US has been asking their European counterparts to increase the military budget. Which eventually has not resulted in many changes even though Donald Trump in 2018 warned of walking out of the deal. The problem with EU defence is structural, with the presence of NATO US has never let EU have a separate defence. Each European country has its distinct national military, leading to incredible inefficiencies and waste.[6] This has led the US army to be the major actor in European defence rather than the Europeans themselves this further leads to more chaos which is visible in the ongoing Ukrainian crisis with Russia. It should be reckoned that all the NATO members like France, UK, Germany and US are depicting a differential attitude. While Germany, France are pursuing dialogue and negotiation, US is leaning more towards a military solution.

The road ahead is quite complicated even if Russia decides not to completely control Ukraine, which seems unlikely as US is adamant against any written assurances to Russia to calm its insecurity. Vladimir Putin is facing a domestic political crisis, the war in Ukraine might gain him a chance to prolong his fading legitimacy. For the US, it needs to overhaul its security strategy concerning Europe.

What is required is pooling in of the resources of the already established armies of NATO, instead of just increasing military expenditure. Many small countries in Europe had joined NATO only to ensure security with minimum expenditure that is free loading on US resources. If Europeans are left to fend their border a situation like previous world wars might occur again, hence it is crucial that US remains involved in the region and keep Russia out. With China, Russian relationship deepening US cannot afford to lose its long-time allies.

Conclusion

All parties must come together to make Europe safer. Increasing the military budget is necessary but a determined strategy and effort is required to achieve consensus among members. Keeping their nationalistic interests aside. Cooperation if not achieved might mean chaos as China and Russia will try to exploit these cleavages.

Notes


[1] Walt, Stephen (2021), “Exactly How Helpless Is Europe?”, Foreign Policy Magazine.    URL: https://foreignpolicy.com/2021/05/21/exactly-how-helpless-is-europe/

[2] Nayan, Rajiv (2001), “US-European Relations in the Post-Cold War Era”, Strategic Analysis,IDSA.                               URL: https://ciaotest.cc.columbia.edu/olj/sa/sa_apr01nar01.html

[3] Techau, Jan (2015), “The Politics Of 2 Percent”, Carnegie Europe.        URL: https://carnegieeurope.eu/2015/09/02/politics-of-2-percent-nato-and-security-vacuum-in-europe-pub-61485

[4] Techau, Jan (2015), “The Politics Of 2 Percent”, Carnegie Europe.   URL: https://carnegieeurope.eu/2015/09/02/politics-of-2-percent-nato-and-security-vacuum-in-europe-pub-61485

[5] Techau, Jan (2015), “The Politics Of 2 Percent”, Carnegie Europe.

URL: https://carnegieeurope.eu/2015/09/02/politics-of-2-percent-nato-and-security-vacuum-in-europe-pub-61485

[6] Bergmann, Max et.al. (2021), “The Case for EU Defence”, the centre for American Progress.     URL: https://www.americanprogress.org/article/case-eu-defense/

 

Pic Courtesy-Marius Serban at unsplash.com

(The views expressed are those of the author and do not represent views of CESCUBE.)