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These include defense spending as a percent of GDP and equipment expenditure as a percent of defense expenditure. They included 9 countries in the forward area and most vulnerable to Russia. They also include Germany, which once was the core of NATO forces in the Central Region, and which has the most successful economy in Europe, and 9 other highly successful European economies.

Here, the United Kingdom is a key example. The new Defense Committee report also recognized bot the importance of the United State role in European defense, and that Britain had to spend more to be an effective partner. However, that will continue to be true only while the UK military retains both the capacity and capability to maintain interoperability with the U.

Similarly, figures like the German Defense Minister Ursula von der Leyen have made it clear that going from 1.

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Griff Witte, " Merkel and Trump agree the ailing German military needs a boost. At present, however, many of its units lack the readiness to move as effective combat forces, its submarines are partly operational at best, along with half of its Leopard 2 tanks. Many of its other armored vehicles lack machine guns, and its pilots have had to borrow commercial helicopters. Such a level of effort goal may have been marginally better than no goal at all when there was no Russian or terrorist threat. In a world where there are always competing and well-defined needs and demands, it is about as pointless as any exercise in governance can get.

These include several highly advanced economies, and countries near Russia. But seeing the low percentages does not imply that any credible rise could fix the impact of years of underspending. In short, NATO is focused on a metric which is little more than statistical rubbish.

A Strategy for Southern Europe

They may serve some purpose in flagging gross underspending, but there is no reason that meeting both goals should be particularly useful or rewarding. There is no way to know what "more" buys, or what "less" cost in terms of actual military capability. The data on total NATO defense spending by country are a different story.

They do show comparative level of effort, and they again flag the critical importance of the US role in shaping alliance military spending. This led the U. To put it bluntly, these data show there is no credible chance that NATO Europe can approach the total spending levels of the U. The country spending data also compare total spending in both current and constant dollars. In some ways, the trends in total defense expenditures turn out to be more reassuring than the nearly meaningless percentage metrics.

As noted in the introduction to this analysis, the Alliance must put an end to meaningful level of effort goals that set some of the worst possible objectives for burdensharing. It must focus on meaningful military objectives to create effective deterrent and defense capabilities and deal with threats like extremism. It must focus on building an effective deterrent and defense capability to deal with Russia, terrorism, and other potential threats, they need to focus on building effective military and internal security forces that serve a clearly defined common strategic purpose.

As for defense spending on real world military capabilities, the U. The preceding analysis has dealt with the scale and importance of U. That amounted to an inflation-adjusted increase of 4. It effectively bypassed the budget caps under the budget control act by adding baseline spending increase under the supposedly wartime and crisis spending in the contingency operations accounts which were exempt from such limits.

A West Point study indicates that this was scarcely a record increase in military spending, but it was a major one. It sharply increased U. Experts disagree sharply about the impact of other trump legislation affecting economic growth, and the cost of mandatory entitlements spending. It is also striking, however, that OMB projects that the burden on the U.

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GDP will continue to drop in spite of this major increase in military spending. OMB projects a continuing drop since FY , and a cut from 4. This again illustrates the pointlessness of focusing on percent of GDP figures rather than real defense spending and what it actually buys.

It is clear, however, that much of this increase will affect U. The most immediate indication is the one area where the U. The full OSD Comptroller description of the program is 18 pages long, and covers a wide range of immediate improvements in U.

A Strategy for Southern Europe

The EDI provides one of the primary funding sources for U. Increasing the presence of U. This increase presence provides the USEUCOM Commander with a credible force posture capable of deterring and, if required, defeating threats posed by regional adversaries. What is really critical about the EDI, however, is that it responds to the right kind of NATO and Transatlantic security goals: Ones set collectively by the NATO military to provide the highest priority increases in deterrent and defense capability in the forward areas of the alliance that are most vulnerable to Russian intimidation, pressure, and asymmetric attack.

All NATO military spending and investment should be based on similar military need, not an accountant's approach to the theater of the absurd. The most important aspect of the increase in the U. Russia seeks veto authority over nations on its periphery in terms of its governmental, economic, and diplomatic decisions, to shatter the North Atlantic Treaty Organization and to change European and Middle East security and economic structures to its favor. Mutually beneficial alliances and partnerships are crucial to the DoD strategy, providing a durable, asymmetric strategic advantage that no competitor or rival can match.

The United States will strengthen and evolve its alliances and partnerships into an extended network capable of deterring or decisively acting to meet shared challenges with shared responsibility. Recognizing each ally and partner is different, interoperability requires combined forces be able to act together coherently and effectively to achieve military objectives. Interoperability is an investment priority for operational concepts, modular force elements, communications, information sharing, and equipment.

Once again, however, these major increases in U. This is particularly critical because the size of the U. With its presence on the ground and with the major countries as shareholders the EBRD regards itself as an important player in the region, combining investment with engagement in policy reforms and offering its vast experience to local and international investors. The Slovenian market requires EBRD to engage in areas where it remains important, such as equity financing, capital market instruments, cross-border investments and green economy technologies.

These are broadly areas where we see the main opportunities, with focus primarily on the manufacturing and services segment but also on financial institutions given the ongoing consolidation in the banking sector. As per challenges, the main problem is the slow pace of privatisation and the role of the state.

As a consequence, state involvement in the economy is still high and the profitability of Slovenian SOEs is low. But an even bigger problem is the frequent cross-ownership of companies, meaning that one entity owns another and vice-versa. While the interconnectedness of state-owned banks with poorly performing SOEs had contributed to the excessive debt build-up before the crisis, cross-ownership also adds to governance problems and provides insufficient incentives to improve productivity. Currently the Polish capital market is much less developed than most European markets.

It covers the period The ministry of finance, EBRD and EU SRSS are motivated to ensure the benefits will be dynamic, promoting the Polish capital markets to a new level of development and allowing it to be more competitive. Together with the relevant authorities, the EBRD has also come up with the idea of developing a joint bond and capital market for the entire Baltic region.

This has essentially kick-started the idea of a pan-Baltic capital market. This resulted in an increased push for the reforms in relation to capital market, including creation and implementation of the framework for Pan-Baltic Covered Bonds. As a result, over the last two years we have seen an increased number of capital market transactions across the Baltics. You must be logged in to post a comment. Emerging Europe. The European Bank for Reconstruction and Development's EBRD senior representatives across the region provide updates on the transition in various key markets.

Announced 6 August by President Putin. Russia banned European food imports in response to EU sanctions. Thus, since it is annually automatically renewed, until replaced by a new agreement. It is primarily concerned with promoting trade, investment and harmonious economic relations. However, it also mentions the parties' shared "[r]espect for democratic principles and human rights as defined in particular in the Helsinki Final Act and the Charter of Paris for a new Europe" and a commitment to international peace and security. Consequently, Russia and the European Union agreed to create four Common Spaces for cooperation in different spheres.

In both cases the final agreement is based on provisions from the EU acquis communautaire and is jointly discussed and adopted. At the St. Petersburg Summit in May , the EU and Russia agreed to reinforce their co-operation by creating, in the long term, four common spaces in the framework of the Partnership and Cooperation Agreement of a common economic space; a common space of freedom, security and justice; a space of co-operation in the field of external security; and a space of research, education, and cultural exchange.

These expand on the ongoing cooperation as described above, set out further specific objectives, and determine the actions necessary to make the common spaces a reality. They thereby determine the agenda for co-operation between the EU and Russia for the medium-term. The objective of the common economic space is to create an open and integrated market between the EU and Russia. This space is intended to remove barriers to trade and investment and promote reforms and competitiveness, based on the principles of non-discrimination, transparency, and good governance.

Among the wide range of actions foreseen, a number of new dialogues are to be launched. Cooperation will be stepped up on regulatory policy, investment issues, competition , financial services , telecommunications , transport , energy , space activities and space launching , etc. Environment issues including nuclear safety and the implementation of the Kyoto Protocol also figure prominently. Work on this space has already made a large step forward with the conclusion of negotiations on the Visa Facilitation and the Readmission Agreements. Both the EU and Russia are in the process of ratifying these agreements.

The visa dialogue will continue with a view to examine the conditions for a mutual visa-free travel regime as a long-term perspective. In a 15 December statement given after an EU-Russia summit, the President of the European Commission confirmed the launch of the "Common Steps towards visa-free travel" with Russia. Cooperation on combating terrorism and other forms of international illegal activities such as money laundering , the fight against drugs and trafficking in human beings will continue as well as on document security through the introduction of biometric features in a range of identity documents.

The EU support to border management and reform of the Russian judiciary system are among the highlights of this space. With a view to contributing to the concrete implementation of the road map, the Justice and Home Affairs PPC met on 13 October and agreed to organise clusters of conferences and seminars, bringing together experts and practitioners on counter-terrorism, cyber-crime , document security and judicial cooperation.

The road map underlines the shared responsibility of the parties for an international order based on effective multilateralism , their support for the central role of the UN , and for the effectiveness in particular of the OSCE and the Council of Europe. The parties will strengthen their cooperation on security and crisis management in order to address global and regional challenges and key threats , notably terrorism and the proliferation of weapons of mass destruction WMD.

They will give particular attention to securing stability in the regions adjacent to Russian and EU borders the "frozen conflicts" in Transnistria , Abkhazia , South Ossetia , Nagorno-Karabakh. It aims at capitalising on the strength of the EU and Russian research communities and cultural and intellectual heritage by reinforcing links between research and innovation and closer cooperation on education such as through convergence of university curricula and qualifications.

12 ideas to save Europe

It also lays a firm basis for cooperation in the cultural field. Russia and the EU continue to work together under Horizon , which runs from to On 4 May , the EU and Russian Federation raised the prospect of beginning negotiations on a visa-free regime between their territories. They will instead work towards providing Russia with a "roadmap for visa-free travel. Russia on the other hand has agreed that should the roadmap be established, it will ease access for EU citizens for whom access is not visa-free at this point, largely as a result of Russian foreign policy which states that "visa free travel must be reciprocal between states.

The dialogue was temporarily frozen by the EU in March during the Crimean crisis. Their recommendations include visa liberalization for Russian citizens in order to "improve people-to-people contacts and to send a strong signal that there is no conflict with Russian society". In an article published to Italian media on 26 May , he said that the next step in Russia's growing integration with the West should be EU membership.

From Wikipedia, the free encyclopedia. Constitution Law. Judiciary Law enforcement. Central Election Commission Presidential elections Federal subjects Heads of federal subjects Regional parliaments. Foreign relations. Related topics. Other countries Atlas. See also: Russia in the European energy sector. See also: Active measures. Main article: Russia in the European energy sector. See also: Future enlargement of the European Union. European Union portal Russia portal International relations portal.

Retrieved 11 June EU External Action. European Parliament. European Commission. Retrieved 9 March The World Factbook.

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Central Intelligence Agency. Blasingstoke: Palgrave MacMillan. Journal of Eurasian Studies. Radio Free Europe. Begins a Test of Wills". The New York Times. Foreign Policy. Wall Street Journal. The Economist. The Daily Beast. European Union External Action. Retrieved 6 May Council of the European Union. NYU Press.

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