NATO commitment on credible line of defense

On 8-9 July 2016, the leaders of the NATO countries met in Warsaw for the biennial summit to discuss the course for the Alliance’s adaption to the new security environment.

One of the main themes of the summit was the renewal of the commitment from the allied countries to stop the decline in national defense spending. After years of enjoying the peace dividend of the Cold War, a new security climate poses new challenges and hence demands in terms of defense spending.

“It is satisfying to see the NATO countries to agree on the need to stop and not least to increase national defense spending. Sufficient funding is essential in order to maintain a credible line of defense,” says Terma President & CEO Jens Maaløe.

“The renewal of the commitment sends a strong message to put greater effort into securing a stronger and safer Alliance. To succeed, it will be necessary for national parliaments to make defense spending a priority which will be a crucial milestone for the future of Transatlantic defense and security cooperation,” continues Jens Maaløe.

The original pledge from the Wales summit in 2014 set out the goal to first stop the decline in and then gradually increase defense spending up to 2 pct. of GDP within a decade, and that 20 pct. of these budgets will be allocated to equipment acquisitions.

In Denmark, the Parliament is expected to discuss a new defense agreement – and defense budget – next year covering the coming five years.