Saturday, June 23, 2012

Funding NATO

23-5-2 America Spends $800 Billion on Vets & War Prep - T&P > . skip > .


A certain megalomaniacal, know-nothing US UNpresident was unaware of the facts concerning member nations' financial contributions to NATO

The combined military spending of all NATO members in 2020 constituted over 57% of the global nominal total. Members agreed that their aim is to reach or maintain the target defence spending of at least 2% of their GDP by 2024.

Allies make direct and indirect contributions to the costs of running NATO and implementing its policies and activities. NATO common-funded budgets and programmes are funded by direct contributions and equate to only 0.3% of total Allied defence spending, an equivalent of around EUR 2.5 billion to run the entirety of the Organization, its commands and military infrastructure.

Indirect – or national – contributions are the largest and come, for instance, when a member commits capabilities and/or troops to a military operation and bears the costs of the decision to do so.

Direct contributions are made to finance the NATO budgets and programmes for requirements that serve the interests of all 30 members – and cannot reasonably be borne by any single member – such as NATO-wide air defence or command and control systems.

All 30 Allies contribute to the NATO budget on an agreed cost-share formula based on Gross National Income, which represents a small percentage of each member’s defence budget. This is the principle of common funding, and demonstrates burden-sharing in action.

Common funding arrangements are used to finance NATO’s principal budgets: the civil budget (NATO HQ running costs), the military budget (costs of the integrated Command Structure) and the NATO Security Investment Programme (military infrastructure and certain capabilities).

Projects can also be jointly funded, which means that the participating countries can identify the requirements, the priorities and the funding arrangements, while NATO provides political oversight.

NATO’s budget has strong governance and oversight mechanisms, with Allies deciding together what is eligible for common funding, deciding how much is spent each year, and setting planning figures for the medium term.

The funding process is overseen by the North Atlantic Council, managed by the Resource Policy and Planning Board, and implemented by the Budget Committee and the Investment Committee.

Geostrategic Projection
European Geostrategic Projection ..

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