1 juin 2020 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
COLOGNE, Germany — A new budget proposal for the European Union shows that the bloc's defense plans are back on the table as the continent pushes to revive its economy following the coronavirus crisis.
Two flagship programs to that end — the European Defence Fund and the Military Mobility initiative — are set to receive €8 billion (U.S. $9 billion) and €1.5 billion (U.S. $1.7 billion), respectively, in the seven-year plan beginning in 2021, according to a proposal unveiled this week by European Commission President Ursula von der Leyen.
Those figures are lower than the initial proposal of €13 billion and €6.5 billion for the two budget lines. But they represent an uptick compared with recent negotiation positions that envisioned defense-related spending slashed even more.
Defense spending remains an unbeloved subject in many European countries, and it is notable that there is no dedicated political narrative around building military prowess in the context of the bloc's recovery plan, dubbed Next Generation EU during a May 27 speech by von der Leyen.
Still, the fact that the European Defence Fund — designed to foster intra-continental defense cooperation — remains in the mix is in itself a statement, according to analysts. Defense-spending advocates in Europe believe a robust military can strengthen the EU's hand in trying to assert its role on the world stage with other players like China and Russia.
The new proposal of €8 billion for the European Defence Fund may not seem like much, given the high, upfront costs for multinational military equipment projects, said Sophia Besch, a senior research fellow at the Center for European Reform. “But it's a win for the [European] Commission in the current political context,” she added.
“COVID-19 has shifted the priorities, and even before the crisis there were signs that defense was losing ground in the traditional budget battles,” Besch said. Given that, the new proposal is “better than nothing,” she argued.
At the same time, the de facto reduction would make it harder to prove for the commission that the intended effects can be achieved with the amount envisioned, Besch predicted.
Funding through the European Defence Fund and its associated channels ensures that certain projects in many member states can happen at all, said Yvonni-Stefania Efstathiou, an Athens, Greece-based defense analyst specializing in the emerging European defense-cooperation framework PESCO, or Permanent Structured Cooperation.
“Allocations to the EDF have the potential of triggering more defense cooperation, as those funds will be used to finance collaborative research and common capability development projects,” she said.
What is still missing, however, is an overarching context of where the EU wants to go with its defense ambitions, she argued. “The impact of these funds will be limited unless there is also progress on the common definition of strategic priorities and military requirements.”
The cut to the budget line for military mobility means member states stand to pay more of their own money for updating bridges, roads and rail networks to ensure military equipment can quickly move along the continent in the event of a standoff with Russia.
The work is seen as a critical interface between the EU and NATO, and alliance officials previously expressed hope for a funding injection that could speed projects along, especially in Eastern Europe.
“Unless we have the full costings of how much bridges and roads will cost, it is hard to evaluate whether the funds are sufficient,” Efstathiou said. “What is easy to predict, however, is the dissatisfaction of the Eastern European states.”
23 juin 2022 | International, Autre défense
While rising inflation rates threaten DoD's purchasing power, congressional politics around a continuing resolution to start FY23 could exacerbate inflation's impact on the defense budget.
9 avril 2018 | International, Aérospatial
NEW DELHI (Reuters) - India is seeking to buy around 110 fighter jets, the air force said in a request for information issued on Friday, marking the first step toward a long-delayed deal that could be worth more than $15 billion. Boeing (BA.N), Lockheed Martin (LMT.N), Saab (SAABb.ST) and Dassault Aviation (AVMD.PA) are among the manufacturers expected to compete. The aircraft must be built largely in India as part of Prime Minister Narendra Modi's drive to build a domestic industrial base. The air force said in a notice that “85 percent will have to be made in India by a Strategic Partner/Indian Production Agency”. Lockheed has offered to move its F-16 production line in Fort Worth, Texas, to India and make it the only plant worldwide to produce the F-16 for not only India but also other countries, said Vivek Lall, vice president, strategy and business development at Lockheed Martin. Lockheed has teamed with India's Tata Advanced Systems to build the planes locally while Sweden's Saab has entered into a partnership with the Adani Group, a resources conglomerate. The other contenders have not announced their local partners. The tender will be open for makers of both single engine and twin-engined combat jets, in a widening of the field. The Eurofighter Typhoon and Russian aircraft are also potential contenders under the new requirements. A spokesman for Dassault Aviation which makes the twin-engine Rafale declined to comment. Earlier, the defense ministry had sought expressions of interest from single-engine manufacturers which effectively restricted the contest to Lockheed's F-16 and Saab's Gripen fighter jets. But in February the government asked the air force to open up the competition to twin-engined aircraft, in the latest flip-flop in policy that has delayed the acquisition process for years and left the air force short of hundreds of planes. India began its search for new planes for the Indian air force in 2003 to replace its Soviet-era MiG fighters. The request for information is open until July, the air force said. A request for proposal will then be issued followed by bid evaluations and contract negotiations. The process could take years, officials say. https://www.reuters.com/article/us-india-defence/india-opens-contest-to-supply-more-than-100-fighter-jets-idUSKCN1HD1UX
16 décembre 2019 | International, Aérospatial, Naval, Terrestre, C4ISR, Sécurité
Lee Berthiaume OTTAWA -- The federal government is predicting Canadian defence spending will inch closer to its NATO promises in the coming years than originally expected -- though not because Ottawa is planning to send new money the military's way. All NATO members, including Canada, agreed in 2014 to work toward spending the equivalent of two per cent of their gross domestic products on defence within the next decade as the military alliance sought to share the burden of defending from new threats like Russia and China. Two years ago, when they unveiled their defence policy, the Liberals said the government would hit 1.4 per cent by 2024-25. But Defence Minister Harjit Sajjan this week said, without providing details, that defence spending would instead reach 1.48 per cent of GDP. An increase of that size could represent close to $2 billion more per year for the military. However, the Department of National Defence told The Canadian Press that there are no new investments on the horizon for the Canadian Armed Forces beyond what's already in the Liberals' policy. Instead, Defence Department spokesman Daniel Le Bouthiller attributed the change to slower-than-expected economic growth over the next few years and more spending on non-military specific activities like veterans' benefits and the Canadian Coast Guard. The government has included such activities in its calculations since 2017 to try to address complaints from the U.S. and other NATO allies that Canada was not investing enough in its military. NATO approved the change. "Approximately two-thirds of the increase from 1.40 to 1.48 per cent is due to increased (other government department) forecasts and one-third due to fluctuating GDP forecasts," Le Bouthillier said in an email. Canada currently spends about 1.31 per cent of GDP -- a common measurement of a country's economic output -- on defence and has no plan to reach NATO's two per cent benchmark, a fact that has made it a target for U.S. President Donald Trump. Trump labelled Canada "slightly delinquent" on defence spending during a meeting in London last week in which he publicly grilled Prime Minister Justin Trudeau about Canada's number before subsequently stepping up his calls for the government to meet the NATO target. "He's not paying two per cent and he should be paying two per cent," Trump said during a meeting with German Chancellor Angela Merkel on Dec. 4. "It's Canada. They have money and they should be paying two per cent." The Liberal government has in fact refused to say whether it believes in the two-per-cent target and has instead repeatedly pointed to Canada's contributions of forces and equipment to NATO missions in Latvia, Iraq and other places as a better measurement of its contributions to the military alliance. The spending target is an imperfect way of measuring how much individual countries are contributing, said Stefanie von Hlatky, an expert on NATO and the military at Queen's University in Kingston, Ont. But all allies are facing pressure to show Trump that they are stepping up on defence spending, she said, which is doubly true for Trudeau after his meeting with the U.S. president in London. "I think there's a little bit of pressure now to maybe update those numbers and probably some rejoicing that it looks better on paper," von Hlatky said. "If we're looking to impress Trump with these minor adjustments, maybe it's all for naught. But there is definitely added pressure with every NATO meeting and NATO summit. And we know it's going to come up as long as Trump is president." Conservative defence critic James Bezan accused the Liberal government of playing a numbers game to make Canada look better rather than investing in the Armed Forces. "It's a sad state of affairs for our military heroes when Justin Trudeau can only improve defence spending figures by engineering a made-in-Canada recession and playing a shell game with other departments' budgets to inflate the numbers," he said. This report by The Canadian Press was first published on Dec. 13, 2019. https://www.ctvnews.ca/politics/slower-than-expected-economic-growth-to-help-canada-s-defence-spending-numbers-1.4728602