71
Burke Chair In Strategy Working Draft Updated July, 2018 Please send comments to [email protected] CSIS Center for Strategic and International Studies 1616 Rhode Island Avenue NW Washington, DC 20036 Anthony H. Cordesman Phone: 1.202.361.8085 Email: [email protected] The U.S., NATO, and the Defense of Europe: Shaping the Right Ministerial Force Goals Anthony H. Cordesman [email protected] Photo: User:Donarreiskoffer, via Wikimedia Commons

CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

  • Upload
    others

  • View
    0

  • Download
    0

Embed Size (px)

Citation preview

Page 1: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Burke ChairIn Strategy

Working Draft Updated July, 2018Please send comments to [email protected]

CSIS – Center for Strategic and

International Studies1616 Rhode Island Avenue NWWashington, DC 20036

Anthony H. CordesmanPhone: 1.202.361.8085

Email: [email protected]

The U.S., NATO, and the Defense of Europe: Shaping the Right

Ministerial Force Goals

Anthony H. Cordesman

[email protected]

Photo: User:Donarreiskoffer, via Wikimedia Commons

Page 2: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Challenges: Real, Political, and Imagined

2

Page 3: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Introduction

3

The Trump Administration has adopted an "America First" strategy, and taken aggressive stands on NATO burden sharing, trade, the JCP0A nuclear agreement with Iran, and the treatment of refugees that have led many in Europe to question its support for NATO and the Transatlantic Alliance. At least some European security experts talk about the U.S. as it was backing away from the NATO alliance, and a split between the United States and Europe that will force Europe to create its own approach to creating military and other security forces.

Many aspects of the Trump Administration's approach to foreign policy are as controversial in the U.S. as in Europe, and President Trump has proved to be an exceptionally volatile and combative leader who can express himself in extreme terms and suddenly change his positions. However, it but it is important to note the underlying realities that shape the new U.S. strategy, the U.S. military role in the NATO alliance, and Europe's own divisions and failures to create effective forces.

The current tensions between the U.S. and given European powers should not lead Europeans - or Americans and Russians for that matter -- to ignore the fact that the U.S. remains fully committed to a strong Transatlantic alliance, that its forces and capabilities are critical to European security, and the Trump Administration's FY2019 budget to Congress will actually greatly increase the contribution that U.S. forces make to NATO and Transatlantic Security.

• The high profile of American "populism" has little practical impact on Transatlantic defense capability. Similar issues have not emerged in most of Europe, and the recent history of European defense efforts makes it all too clear that there is no Europe consensus or unity in supporting an effective defense strategy or meaningful level of military effort. The political and economic divisions that divide Western states are truly Transatlantic, and involve Britain, France, Germany, Italy, and other European states just as they divide the United States.

• If one looks beyond tweets to the actual text of the new U.S. strategy, the U.S. remains fully committed to the Transatlanticalliance and Europe's defense. Moreover, the Trump Administration is spending far more on NATO than the Obama Administration and greatly increasing the readiness and strength of the forces that the U.S. can supply to NATO.

• The Trump Administration's new National Security Strategy does refer to "putting America first," but its opening also states that, An America that is safe, prosperous, and free at home is an America with the strength, confidence, and will to lead abroad. It is an America that can preserve, peace, uphold liberty, and create enduring advantages for the American people. Putting America first is the duty of our government and the foundation for U.S. leadership in the world. A strong America is in the vital interests of not only the American people, but also those around the world who want to partner with the United States in pursuit of shared interests, values, and aspirations.

• The new strategy may call for more European military efforts, but it strongly backs the NATO alliance and singles Russia out, along with China, as one of the two major challenges to U.S. security. The text calls for the U.S. to "rally the world,"and claims that, "The whole world is lifted by America’s renewal and the reemergence of American leadership." It has no relation to isolationism or any withdrawal from Transatlantic security.

Page 4: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

4

• The Trump Administration's FY2019 defense budget submission nearly doubles the FY2017 spending level on the U.S. European Defense Initiative from $3.4 billion to $6.5 billion. More broadly, the Administration's FY2019 U.S. defense budget raises U.S. baseline defense spending by $74 billion. This increase in FY2019 is higher than the official NATO Estimate of the total size of any European 2017 Defense Budget. (UK = $55.2 billion; France = $45.9 billion, Germany = $45.5 billion, Italy = $23.4 Billion.)

• The Trump Administration's focus on military burden sharing as the percent of a nation's economy or GDP devoted to defense is a dangerously meaningless criteria for judging useful defense efforts. However, this focus on meaningless metric of burden sharing has been shaped by the past actions of NATO Ministers and previous U.S. Administration. It is NATO --not the Trump Administration-- that is to blame for setting absurd goals for defense spending like 2% of GDP. It is also a reality that NATO figures show all too clearly Europe does bear far less of the total burden than is total economic wealth would indicate is fair.

• Any detailed net assessment of NATO forces, the military balance, and the national elements of NATO's force sand defense spending will show that is no meaningful European alternative to dependence on the United States. Europe has no meaningful near to mid-term alternative to dependence on the U.S. It would take a decade of a far more intensive level of additional European military spending than seems credible to give Europe such capabilities, and require a level of cohesive European action that is even less credible.

If the United States, Canada, and Europe are to work together effectively to build an effective deterrent and defense capability to deal with Russia, terrorism, and other potential threats, they need to focus on building effective military andinternal security forces that serve a clearly defined common strategic purpose. The current focus on burden sharing percentage terms has not only led President Trump to focus on the wrong priorities, but the entire NATO alliance -- and this is the fault of NATO's past and not President Trump.

The days of relying on peace dividends and meaningless goals for levels of spending are over. There is a real Russian threat,as well as a real threat of violent extremism. NATO needs to return to the kind of serious force planning and focus on military strategy that shaped the NATO force planning exercise in the 1960s, the deployment of the GLCM and Pershing II, and the planning for MBFR and the CFE Treaty. It needs to set real military requirements and really meet them.

This report provides detailed metrics on the problems in using the wrong measures of burdensharing, the rising level. of U.S. military efforts and capabilities to support Europe and NATO, and the comparative levels of defense effort in given NATO countries.

Page 5: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

“Transactional Tweeting” versus “Euro-Populism” Political Issues that Divide the U.S and Europe and

Distract from a Focus on Transatlantic Defense

5

• Anger, fear of change, ignore, demographics, racism, religious prejudice

• NATO burdensharing in the form of bullying bluster, and defensiveness

• Environment, Paris Agreement within the United Nations Framework Convention on Climate Change (UNFCCC)

• Brexit, EC vs. nationalism,

• Automation, post-industrial revolution, poor economic growth.

• Trade policy (wars?), Tariffs

• Backlash over Iran, U.S. unilateral withdrawal from JCPOA

• Jerusalem, Israel, Palestinians

• Alliances versus mistaken view of “America First.”

• Human rights versus self-interest, privacy, etc.

• Refugees, immigration, terrorism, jobs

Page 6: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Key Transatlantic Security Issues that Are Truly Critical to Security and Defense

6

• Tensions with Russia

• Transatlantic vs. Euro-defense

• NATO modernization, missions

• U.S. and European power projection capability

• Nuclear/WMD modernization, proliferation, disarmament

• Out of Area Issues: Counterterrorism, Afghanistan ISIS, internal security, MENA regional issues: Libya, Iraq, Syria, Gulf,

• Iran, post JCPOA policy, and sanctions

• New forms of warfare: Cyber, space, asymmetric, robotic and artificial intelligence, next generation precision strike and IS&R, .

Page 7: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

What the New U.S. Strategy Actually Says About NATO and Transatlantic

Security

7

Page 8: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

What the New US National Security Strategy Actually Says About the U.S. Commitment to NATO and Europe

8

The U.S. is in the middle of a highly controversial shift to a more conservative government, and one associated with populismand new pressure on Europe over trade and its level of military spending. Europe too, however, has its own divisions, controversies, and "populism." Its key divisions range from Brexit to immigration, and its internal politics reflect much of thesame tensions over new migrants, economic change and employment issues, and climate change and other environmental issues as in the U.S. along with a wide ranging mix of divisions over nationalism versus European unity.

President Trump did create some confusion over his commitment to NATO and the Transatlantic alliance when he initially failed to make a firm commitment to Article Five and the mutual defense clause in the NATO Treaty. He did so in the context of pressuring Europe far higher levels of defense spending, however, and he later made an unambiguous commitment to honor Article Five during a speech in Poland on July 6, 2017,

"To those who would criticize our tough stance, I would point out that the United States has demonstrated — not merely with its words but with its actions — that we stand firmly behind Article 5, the mutual defense commitment...Words are easy, but actions are what matters. And for its own protection, Europe — and you know this, everybody knows this, everybody has to know this — Europe must do more."

Much of the U.S. and European criticism of the Trump Administration's new strategy also seems to be based more on Tweets and OPEDs than the actual documents. Their texts reflect a clear U.S. commitment to meeting the challenge from Russia and to the Transatlantic alliance. President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two most serious threats the U.S. now faces. The NSS describes Russia, and the U.S. commitment to Europe as follows:

A strong and free Europe is of vital importance to the United States. We are bound together by our shared commitment to the principles of democracy, individual liberty, and the rule of law. Together, we rebuilt Western Europe after World War II and created institutions that produced stability and wealth on both sides of the Atlantic. Today, Europe is one of the most prosperous regions in the world and our most significant trading partner. Although the menace of Soviet communism is gone, new threats test our will. Russia is using subversive measures to weaken the credibility of America’s commitment to Europe, undermine transatlantic unity, and weaken European institutions andgovernments. With its invasions of Georgia and Ukraine, Russia demonstrated its willingness to violate the sovereignty of states in the region. Russia continues to intimidate its neighbors with threatening behavior, such as nuclear posturing and the forward deployment of offensive capabilities.

...The United States is safer when Europe is prosperous and stable, and can help defend our shared interests and ideals. The United States remains firmly committed to our European allies and partners. The NATO alliance of free and sovereign states is one of our great advantages over our competitors, and the United States remains committed to Article V of the Washington Treaty. European allies and partners increase our strategic reach and provide access to forward basing and overflight rights for global operations. Together we confront shared threats.

Page 9: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

9

European nations are contributing thousands of troops to help fight jihadist terrorists in Afghanistan, stabilize Iraq, and fight terrorist organizations across Africa and the greater Middle East. The NATO alliance will become stronger when all members assume greater responsibility for and pay their fair share to protect our mutual interests, sovereignty, and values.

...The United States fulfills our defense responsibilities and expects others to do the same. We expect our European allies to increase defense spending to 2 percent of gross domestic product by 2024, with 20 percent of this spending devoted to increasing military capabilities. On NATO’s eastern flank, we will continue to strengthen deterrence and defense, and catalyze frontline allies and partners’ efforts to better defend themselves. We will work with NATO to improve its integrated air and missile defense capabilities to counter existing and projected ballistic and cruise missile threats, particularly from Iran. We will increase counterterrorism and cybersecurity cooperation.

The Secretary of Defense's new National Defense Strategy (NDS), issued in February 2018, reinforces these points. It too describes Russia's role as one of the key threats to the U.S., and strongly emphasizes the value of strategic partnerships and NATO

The central challenge to U.S. prosperity and security is the reemergence of long-term, strategic competition by what the National Security Strategy classifies as revisionist powers. It is increasingly clear that China and Russia want to shape a world consistent with their authoritarian model—gaining veto authority over other nations’ economic, diplomatic, and security decisions...Russia seeks veto authority over nations on its periphery in terms of their governmental, economic, and diplomatic decisions, to shatter the North Atlantic Treaty Organization and change European and Middle East security and economic structures to its favor. The use of emerging technologies to discredit and subvert democratic processes in Georgia, Crimea, and eastern Ukraine is concern enough, but when coupled with its expanding and modernizing nuclear arsenal the challenge is clear.

Another change to the strategic environment is a resilient, but weakening, post-WWII international order. In the decades after fascism’s defeat in World War II, the United States and its allies and partners constructed a free and open international order to better safeguard their liberty and people from aggression and coercion. Although this system has evolved since the end of the Cold War, our network of alliances and partnerships remain the backbone of global security. China and Russia are now undermining the international order from within the system by exploiting its benefits while simultaneously undercutting its principles and “rules of the road.”

...We face an ever more lethal and disruptive battlefield, combined across domains, and conducted at increasing speed and reach—from close combat, throughout overseas theaters, and reaching to our homeland. Some competitors and adversaries seek to optimize their targeting of our battle networks and operational concepts, while also using other areas of competition short of open warfare to achieve their ends (e.g., information warfare, ambiguous or denied proxy operations, and subversion). These trends, if unaddressed, will challenge our ability to deter aggression.

The security environment is also affected by rapid technological advancements and the changing character of war. The drive to develop new technologies is relentless, expanding to more actors with lower barriers of entry, and moving at accelerating speed. New technologies include advanced computing, “big data” analytics, artificial intelligence, autonomy, robotics, directed energy, hypersonics, and biotechnology— the very technologies that ensure we will be able to fight and win the wars of the future...New commercial technology will change society and, ultimately, the character of war. The fact that many technological developments will come from the commercial sector means that state competitors and non-state actors will also have access to them, a fact that risks eroding the conventional overmatch to which our Nation has grown accustomed. Maintaining the Department’s technological advantage will require changes to industry culture, investment sources, and protection across the National Security Innovation Base.

Page 10: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

10

... Mutually beneficial alliances and partnerships are crucial to our strategy, providing a durable, asymmetric strategic advantage that no competitor or rival can match. This approach has served the United States well, in peace and war, for the past 75 years. Our allies and partners came to our aid after the terrorist attacks on 9/11, and have contributed to every major U.S.-led military engagement since. Every day, our allies and partners join us in defending freedom, deterring war, and maintaining the rules which underwrite a free and open international order...By working together with allies and partners we amass the greatest possible strength for the long-term advancement of our interests, maintaining favorable balances of power that deter aggression and support the stability that generates economic growth. When we pool resources and share responsibility for our common defense, our security burden becomes lighter. Our allies and partners provide complementary capabilities and forces along with unique perspectives, regional relationships, and information that improve our understanding of the environment and expand our options. Allies and partners also provide access to critical regions, supporting a widespread basing and logistics system that underpins the Department’s global reach.

We will strengthen and evolve our alliances and partnerships into an extended network capable of deterring or decisively acting to meet the shared challenges of our time...A strong and free Europe, bound by shared principles of democracy, national sovereignty, and commitment to Article 5 of the North Atlantic Treaty is vital to our security. The alliance will deter Russian adventurism, defeat terrorists who seek to murder innocents, and address the arc of instability building on NATO’s periphery. At the same time, NATO must adapt to remain relevant and fit for our time—in purpose, capability, and responsive decision-making. We expect European allies to fulfill their commitments to increase defense and modernization spending to bolster the alliance in the face of our shared security concerns.

Some Europeans and Americans may not like President Trump's style or use of Tweets, bit it is critical to note that his strategy documents make it clear that "America First" calls for a revitalization of American leadership and not a retreat from the world.It is equally important to note that they firmly reassert the primacy of the U.S. commitment to Europe in U.S. strategy, along with the critical importance of Russia's reemergence as a potential threat.

The U.S. is also scarcely alone in calling for a stronger and more effective European defense effort, and larger national contributions. Many European Ministers of Defense, and senior European commanders make the same points -- although they focus more on real world military capabilities than percentage of GDP and spending on new weapons.

Page 11: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Trump on Article 5 and Burden Sharing in Warsaw: July 6, 2017

11

"To those who would criticize our tough stance, I would point out that the United States has demonstrated — not merely with its words but with its actions — that we stand firmly behind Article 5, the mutual defense commitment…

"Words are easy, but actions are what matters. And for its own protection, Europe — and you know this, everybody knows this, everybody has to know this — Europe must do more.". Jacob Pramuk, Trump endorses NATO's mutual defense pact in Poland, after failing to do so on first Europe trip, CNBC,7:49 AM ET Thu, 6 July 2017 Updated 9:05 AM ET Thu, 6 July 2017, https://www.cnbc.com/2017/07/06/trump-us-stands-firmly-behind-nato-article-5.html

Page 12: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Key Elements of New US National Security Strategy: “America First” Means Global Rebalancing

12OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 13: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

The Role of Alliances in the New Strategy

13OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 14: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Key Elements of New US National Defense Strategy

14OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 15: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

FY2019: Equal Emphasis on Investments to Support U.S. Forces in Europe and Asia

15OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 16: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

The U.S Dominates Global Military Spending In Spite of

Past U.S. Budget Caps

16

Page 17: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

The Sheer Scale of U.S. Military Spending

17

Any analysis of the level of U.S. effort that shapes America's ability to implement this strategy must focus on the level of resources the U.S. provides and how they compare to allied and rival states. NATO’s emphasis on burdening sharing tends may lead NATO analysts to focus on defense spending as a percent of GDP, rather than compare the trends in terms of actual spending. Work by the IISS and SIPRI shows, however, just how large the U.S. effort is compared to other states and that the U.S. clearly dominates military spending on a global basis..

There are limits to such comparisons because they have to be made in terms of actual spending past years, and cannot reflect the massive rises in U.S. spending called for under the Trump Administration’s FY2019 budget submission. As the IISS and SIPRI data show, virtually every source of comparative estimates defense spending also uses at least slightly different definitions and produces different figures. This is further complicated when attempts are made to compare spending trends in constant dollars because sources use different conversion factors, and all such comparisons do not account for the very different costs of given elements of military spending like personnel cost, operations and maintenance O&M), and procurement.

Nevertheless, the differences between IISS and SIPRI spending estimates for CY2017 -- the most recent year available -- are comparatively small and they send several clear messages:

• Even when the comparisons of the U.S. for FY2017 exclude all spending on nuclear weapons, homeland defense, and veterans, the U.S. spent well over $600 billion on defense.

• The IISS estimates that the U.S. spent 38.2% of all world military expenditures in 2017. SIPRI estimates 35%.

• The U.S. spending level was well over 8 times the spending of Russia, and 4 times the spending of China.

• If one compares the data for the four largest European powers in NATO, U.S. spending was well over 12 times the spending of the UK, 10 times the spending of France, 14 times the spending of Germany, and 24 times the spending of Italy.

At the same time, the IISS and SIPRI data show that there is no correlation between the size of military efforts and the percentage of GDP spent on military forces. The percentage of the GDP spent on defense may be a useful measure of potential strain on a nation’s economy but it is worthless as even the crudest measure of actual military capability.

Page 18: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

The U.S. Dominates Military Spending in 2017(Before major U.S. increase in FY2019)

18Source: IISS, Military Balance, 2018, pp. 19-208; SIPRI. May 2, 2018, https://www.google.com/search?q=SIPRI%3A+Chinese+militaryspending+2017&ie=utf-8&oe=utf-8&client=firefox-b-1. https://www.sipri.org/research/armament-and-disarmament/arms-transfers-and-military-spending/military-expenditure

SIPRI

IISS

Page 19: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Top Defense Budgets, by Country, 2017

Current Prices & Exchange Rates (billion $USD)

US ChinaSaudiArabia

Russia India UK France JapanGerma

nySouthKorea

BrazilAustral

iaItaly Israel Iraq India Turkey

IISS 602.8 150.5 76.7 61.2 52.5 50.7 48.6 46 41.7 35.7 29.4 25 22.9 21.6 19.4 52.5 8

SIPRI 610 228 69.4 66.3 63.9 47.2 57.8 45.4 44.3 39.2 29.3 27.5 29.2 16.5 7.4 63.9 18.2

0

100

200

300

400

500

600

Source: SIPRI: https://www.sipri.org/research/armament-and-disarmament/arms-transfers-and-military-spending/military-expenditure

IISS, Military Balance, 2018

Page 20: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Source: IISS, Military Balance, 2018, pp. 19-208; SIPRI. May 2, 2018, https://www.google.com/search?q=SIPRI%3A+Chinese+militaryspending+2017&ie=utf-8&oe=utf-8&client=firefox-b-1. https://www.sipri.org/research/armament-and-disarmament/arms-transfers-and-military-spending/military-expenditure

20

Comparative Military Efforts: IISS vs. SIPRI

SIPRI

IISS

Page 21: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Source: IISS, Military Balance, 2018, pp. 19-208; SIPRI. May 2, 2018, https://www.google.com/search?q=SIPRI%3A+Chinese+militaryspending+2017&ie=utf-8&oe=utf-8&client=firefox-b-1. https://www.sipri.org/research/armament-and-disarmament/arms-transfers-and-military-spending/military-expenditure

21

Comparative Percent of GDP: IISS vs. SIPRI

SIPRI

IISS

Page 22: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Looking at NATO Burdensharing Before the Major Rise in U.S. Defense

Spending in FY2019

22

Page 23: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Actual Military Spending versus Meaningless Percentage Measures of Burden-Sharing

23

NATO now focuses at the Ministerial level on some of the worst possible metrics of military effort, and ones that do nothing to portray real world military capability. These include two major metrics: defense spending as a percent of GDP and equipment expenditure as a percent of defense expenditure. Both metrics fail to provide any data on whether the current or proposed level of spending is relevant to military requirements and mission needs, and -- as has been noted in the narrative on the previous section – the GDP data only give the crudest picture of even the burden on the economy since any figure much below 4% of the GDP cannot put a serious strain on a stable developed economy and the acceptable burden on a troubled economy must be determined by that economies individual problems and needs.

How Much is Far Too Little

About the one thing that the NATO data on the current level of national spending on defense do reveal is that President Trump’s arguments about burdensharing are broadly correct – if now focused on the wrong metric. The current national spending levels of many NATO countries are so low that there can be little doubt that they are spending far too little to maintain effective military forces at anything approaching the size they should be able to fund and deploy.

NATO data show that 24 of 28 countries were spending less than 2% of the GDP on defense in 2017. They included 9 countries in the forward area and most vulnerable to Russia. They also include Germany, which once was the core of NATO’s land and air forces in the Central Region, and which has the most successful economy in Europe. However, Germany is only one of the “sick men” of European defense. The data show that nine other successful European economies are almost certainly spending too little.

The Need to Focus on Military Capability and Not Percentages of GDP or Equipment Spending

The core problem in these data, however, is that there is no indication at all of what percent would actually buy a successful mix of deterrent and defense capability, what strain -- if any -- going to higher percentages off GDP would put on a given economy, and what level of spending it would take to make up for years and sometimes more than a decade of chronic underspending since the break up of the Soviet Union and Warsaw Pact. The 2% goal is inherently meaningless, and so is the 20% on equipment spending – which says nothing about whether the money is being spent in ways that provide the right real world improvements in mission capability.

Page 24: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

24

The Meaningless Character of the 2% of GDP Goal

The meaningless character of the 2% of GDP goal is easy to document. The United Kingdom is a key example. It is one of the few NATO European countries to have actually reached and exceeded the 2% level in 2017 (2.19%), Yet the British Parliament's Defense Committee reported in June 2018 that "spending needed to increase to 2.5 percent of national output from its current level of 2 percent to retain Britain’s firepower. It said spending should rise to 3 percent if the armedforces’ capacity and capabilities were to be improved. (Reuters, https://www.reuters.com/article/us-britain-defence/uk-defense-spending-must-rise-to-keep-strong-u-s-nato-links-lawmakers-idUSKBN1JL31N, June 25, 2018).

The same Reuters report indicated that a separate parliamentary study had already shown that Britain’s defense spending had fallen by 1 billion pounds between 2012/13 and 2016/17. 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. It stated that, “Military-to-military engagement between the UK and the U.S. is one of the linchpins of the bilateral relationship,” the report said, citing both operational and financial benefits...However, that will continue to be true only while the UK military retains both the capacity and capability to maintain interoperability with the U.S. military and to relieve U.S. burdens.”

Similarly, figures like the German Defense Minister Ursula von der Leyen have made it clear that going from 1.24% of GDP to 2.0% would take years to bring Germany's existing forces to meaningful readiness -- if ever. Prime Minister Merkel has described German defense as "unsatisfactory," and as creating “evil tidings every day. Real world Germany military capability is absolutely critical to effective European defense, but spending 2% would not by itself move Germany or NATO towards creating a more effective deterrent and defense capability. (Griff Witte, " Merkel and Trump agree the ailing German military needs a boost. Why isn’t it happening?" Washington Post, June 21, 2018)

Germany might well be able to field a more effective force for less than 2% if it reorganized around a realistic force posture and set of mission priorities. 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.

Moreover, an empty nominal goal like 2% of GDP is not only meaningless in military terms, meeting it is so divorced from any clear benefit that it provides almost no political incentive to spend, either in terms of total effort or military and mission priority. In fact, Reinhard Brandl, a member of Merkel’s party who sits on the Parliament’s defense and budget committees has stated that President Trump's call for 2% is perceived by the German people as "blackmail" because there is no clear link to any improvement in their security.

Such a level of effort goal may have been marginally better than no goal at all when there was no Russian or terrorist threat. Today, however, meeting or not meeting the 2% goal says nothing to any legislator or citizen about the level of security it will buy. 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.

Page 25: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

25

should be particularly useful or rewarding. The same is true of efforts to break out spending per capita, spending on personnel, equipment, infrastructure, and/or "other." It seems safe to guess that more spending is better than less, but it remains a "guess" at best. 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. If one uses NATO data for totalcurrent defense spending -- rather than IISS or SIPRI data -- NATO calculates that in spite of the cuts in U.S. defense spending between 2011 and 2017, there were greater cuts in spending by other NATO members. This led the U.S. share of total NATO defense spending to rise from 71.1% in 2010 to 73.9% in 2016 and 2017. To put it bluntly, these data show there is no credible chance that NATO Europe can approach the total spending levels of the U.S., and find a credible substitute for the combination of forward deployed forces and U.S. power projection capability.

The country spending data also compare total spending in both current and constant dollars. Many of the trends in constant dollars are reassuring in the sense that even countries spending less than 2% of their GDP are making major defense expenditures, and that a number of countries near Russia have raised their spending in recent years, regardless of whether they met the 2% goal. In some ways, the trends in total defense expenditures turn out to be more reassuring than the nearly meaningless percentage metrics.

What is far more telling, however, are the data showing the force levels the NATO, Russia, and other European countries had in 1990 – at the end of the Cold War – and the current size of the military forces in these countries. If one compares the data from the International Institute of Strategic Studies (IISS) annual Military Balance for 1990-1991 with the data for 2017, there have been massive cuts in most land and air forces relative to the days of the Cold War. These land and air forces are the core of Europe’s deterrent and defense capability, and the trends in seapower and marine forces have scarcely been better.

Russian forces are far smaller than those that existed under the USSR, even if Belarus is included. The U.S. too has made massive cuts in its forces in Europe, and serious cuts in its total force structure. However, virtually all of the NATO and neutral powers in Europe have taken far larger “peace dividends.” Countries like Belgium, Britain, Denmark, France, Germany, the Netherlands, the Czech Republic, Slovakia, Hungary, Italy, Romania and Bulgaria have cut their forces to a point where their effectiveness in any serious contingency is questionable at best. They clearly are not prepared to deal with the resurgence of any threat from Russia, and are not maintaining the force levels necessary to provide an effective deterrent and defense capability.

Page 26: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

26

Germany, for example, had 5,045 main battle tanks in 1990, and 236 in 2017 – many non-operational. Its Air Force had 503 combat aircraft in 1990 and had only 2011 in 2017. France had 1,340 main battle tanks in 1990, and only 200 in 2017; it had 597 combat aircraft in 1990 and had only 294 in 2017. The United Kingdom had 1,330 main battle tanks in 1990, and 227in 2017; it had 538 combat aircraft in 1990 and only 258 in 2017. Belgium, Denmark, and the Netherlands had a collective total of 1,583 main battle tanks in 1990, and a total of only 34 in 2017. They had a total of 426 combat aircraft in 1990, and only in 195 2017.

Such numbers were also only part of the story. Even many relatively new combat aircraft lacked the advanced avionics needed to compete in first line air-to-air combat and deliver advanced precision strikes. Readiness was also critical problem for both armor and aircraft. In 2017, it was revealed that one-third of Britain’s typhoons and Tornados were unfit to fly, ndother reports showed that Britain was only meeting 70% of its recruitment goals. Some aspects of French readiness were worse. Florence Parly, a French Minister of the armed forces, announced in December 2017, that 56% of French aircraft were unfit to fly. She did so after a 25% increase in the maintenance budget over the previous 5 years. (Adam Lusher, Britain's armed forces being 'hollowed out' as recruitment stalls, Government-commissioned study finds,

The Independent, Monday 4.9.17, https://www.independent.co.uk/news/uk/home-news/armed-forces-army-recruitment-crisis-mark-francois-report-filling-the-ranks-navy-raf-lack-of-a7929411.html; Rory Mulholland, Ground Force: Half of France’s Aircraft Unfit to Fly,” The Telegraph, 16.12.17, https://www.telegraph.co.uk/news/2017/12/16/ground-force-half-frances-military-planes-unfit-fly/).

A report by the German parliamentary commissioner for the armed forces, Hans-Peter Bartels found that, "The army's readiness to deploy has not improved in recent years, but instead has got even worse…At the end of the year six out of six submarines were not in use. At times, not one of the 14 Airbus A-400M could fly." He described the condition of the military's fleet of fighter planes, tanks, helicopters and ships as "dramatically bad,” and the report said a lack of spare parts and outdated equipment had left "big gaps" in the armed forces, while thousands positions for officers were vacant.

NATO’s new Eastern European members – the nation’s closest to Russia – do no better. Small forward states like Estonia, Latvia, and Lithuania lack the scale and resources to create serious forces. However, a key state like Poland has cut its tanks from 2,900 to 937, and its combat aircraft from 516 to 99. Similarly, Hungary has gone from 1,516 tanks to 30, and 80 combat aircraft to 4. Bulgaria has gone from 2,888 tanks to 90, and 195 combat aircraft to 22.

The 20% on Equipment Goal is Equally Stupid and Irrelevant

It takes a considerable amount of detailed analytic effort to show how badly structured the modernization, procurement, and sustainability investments of many NATOL countries are. The equipment force cuts just listed, however, show that most

Page 27: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

27

countries are falling far short of maintaining their their force postures, much less improving them. Moreover, even a brief review of the rate of national major equipment modernization reflected in the International Institute of Strategic Studies (IISS) annual Military Balances, shows that most NATO countries are investing far too little to maintain their force structures regardless of whether they meet the 20% goal. It is a “nonsense” objective.

The Need for Force Planning and Spending Goals that Provide Real Deterrent and Defense Capability

NATO’s focus on meaningless goals like 2% of the GDP, and 20% on equipment expenditure may have led President Trump to focus on the wrong priorities, but he is focus on goals set by the entire NATO alliance – and that fact these goals are irrelevant is the fault of NATO and not President Trump.

The days in which members of the alliance could safely rely on making more and more force cuts, taking annual additional peace dividends, and relaying on meaningless spending goals are over. There is a real Russian threat, as well as a real threat of violent extremism. NATO needs to focus on creating an effective mix of deterrent and defense capabilities that generates real world military capabilities. It needs the initiatives that the NATO military have already begun to reduce the exceptionalvulnerability of the Baltic and Scandinavian states. It needs to support Poland and create a stronger mix of deterrent capabilities in the new Central Region formed by the break up of the former Soviet Union, and take a hard look at the strategic importance of the Ukraine as a buffer between NATO and Russia.

Any net assessment of the current military balance in key scenarios and regions shows that Russia is now a far smaller conventional threat than existed during the Cold War, and that most of its former East European partners in the Warsaw Pact are now members of NATO. At the same time, even the most basic comparisons of NATO European forces by country and region within NATO shows how serious the gaps still are in NATO European country defense efforts when it comes to deterring and defending against Russia. If a similar analysis was made of European sea power and power projection capabilities, it would show equal gaps in the naval balance and ability to fight terrorism and violent extremism outside the NATO area.

Meeting NATO’s New Challenges: The “New” Central Region

NATO deterrence and defense faces several fundamentally different challenges than it did during the Cold War. The break-up of the Soviet Union and Warsaw Pact has radically changed the strategic map that NATO must cope with. The geography new central region makes Poland and Germany the keys to forward defense against a Russian threat that must come through Belarus, Kaliningrad, and/or a Lithuania – unless Russia can destabilize the Ukraine and some how make it an ally.

Page 28: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

28

At the same time, any review of the actual land and air forces – and total defense spending efforts -- in the NATO European states that make up this new central region, shows how weak it is in many critical respects. The fact that Poland is now the main defense of a self-disarming Germany is scarcely without irony. The uncertain pivotal role of the Ukraine as a buffer, however, raises equally serious questions about the weakness of the Czech Republic, Slovenia, and Romania.

It also shows how critical it is for the United States to both maintain its forward presence in Europe, and have a credible rapid deployment capability. Here, the improvement that the increases President Trump is making in U.S. defense spending and U.S. defense initiatives in NATO will make a major difference – if they are sustained and if European countries make the necessary changes to allow rapid U.S. land and air deployments – as well as the forward deployment of other European powers. Unlike the 2% non-solution, this is a truly critical aspect of burdensharing.

The New Baltic and Northern Region

NATO faces an even more serious challenge in the Baltic and Scandinavia –and once again, it is the actual size and structure of European forces and the size of total defense spending – not percentages – that count. Any review of the land and air forces of Estonia, Latvia, and Lithuania – and of their population and economic resources – show that they are micro-states in terms of their ability to generate forces that can deter and defend against a power as large as Russia. They are highly vulnerabletargets for Russian threats and pressure, as well as demonstrative and asymmetric Russian attacks. The NATO military have already set goals that help reduce their vulnerability, but more help and finding ways that NATO can reinforce deterrence by non-military means and pressure on other areas should be a key objective.

Scandinavia has always been a problem for NATO. Denmark is both a northern and central region power, and like Germany and Poland, a key air/sea power in the Baltic.

Norway shares a vulnerable northern border with Russia, but Finland and Sweden – non-NATO states – play a critical role in deterring Russia as well. NATO needs a far clearer picture of how it can reinforce deterrence and potential cooperation withFinland and Sweden without provoking Russia – particularly given the major force cuts that Finland and Sweden have made since the end of the Cold War. It is not simply NATO European powers that need to do more in their own defense.

The Inchoate New Southern Region

Some of NATO’s greatest challenges exist in the ”Southern Region.” Many of the NATO’s Mediterranean and Adriatic powers –like Italy, Spain, Greece, and to some extent Portugal and France; face a more serious challenge from extremism, terrorism, and the instability of North African states than Russia. Turkey has become an increasingly problematic member of the alliance, while Romania and Bulgaria face a potential – if now limited threat in the Black Sea area and the risk posed by the fighting in the Ukraine and its internal instability.

.

Page 29: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

29

NATO needs something approaching a real world strategy to set meaningful force goals and priorities for the region, to act as an incentive for its powers to play a more active and integrated role in fighting extremism and terrorism and deal with refugee and migration problems, as well as project forces forward to defend and deter against Russia. Once again, empty percentages do nothing to set such priorities. It will take adequate defense spending and adequate forces.

Shifting from Meaningless Percentage Goals to Goals that Enhance Deterrence and Defense

The right kind of burdensharing is a critical issue in NATO, Transatlantic unity, successfully deterring Russia, and fighting the threat of extremism. Today, however, the focus is on the wrong kind of burdening sharing to the point where NATO heads of state and defense ministers are involved in the military equivalent of the theater of the absurd.

NATO does not need a screaming match between either the U.S. President and his European counterparts, or between its comptrollers and accountants. It needs to return to the kind of serious force planning and focus on military strategy that shaped the NATO force planning exercise in the 1960s, the deployment of the GLCM and Pershing II, and the planning for MBFR and the CFE Treaty. It needs to set real military requirements and really meet them.

As noted in the introduction to this analysis, the Alliance must put an end to meaningful level of effort goals that set some ofthe 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 andinternal security forces that serve a clearly defined common strategic purpose.

.

Page 30: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Comparative NATO Defense Efforts in 2017(Before major U.S. increase in FY2019)

30

Total defense expenditure as a Percent of GDP in 2010 prices and exchange rates

NATO, Defence Expenditure of NATO Countries, Press release PR/CP (2018)16, 15.3.18, https://www.nato.int/cps/ic/natohq/news_152830.htm.

Page 31: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Comparative NATO Equipment Efforts in 2017(Before major U.S. increase in FY2019)

31NATO, Defence Expenditure of NATO Countries, Press release PR/CP (2018)16, 15.3.18, https://www.nato.int/cps/ic/natohq/news_152830.htm.

Equipment expenditure as a Percent of Defense Expenditure in 2010 prices and exchange rates

Page 32: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Comparative NATO Efforts in 2017(Before major U.S. increase in FY2019)

32NATO, Defence Expenditure of NATO Countries, Press release PR/CP (2018)16, 15.3.18, https://www.nato.int/cps/ic/natohq/news_152830.htm.

Page 33: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

685,957

55,237

45,927

45,472

23,369

21,275

12,118

12,074

10,337

9,765

6,698

4,737

4,458

3,802

3,658

2,824

2,249

1464

1,129

871

814

690

538

529

478

288

145

74

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

NATO Defense Expenditure, by Country, 2017e

Current Prices & Exchange Rates (million $USD)

Source: NATO Public Diplomacy Division: Defense Expenditure of NATO Countries (2010-2017). PR/CP(2018)16

https://www.nato.int/nato_static_fl2014/assets/pdf/pdf_2018_03/20180315_180315-pr2018-16-en.pdf

Page 34: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

U.S. vs. NATO European and Canadian Military Spending

34

US as % of Total NATO Spending 71.1% 70.9% 71.5% 70.2% 69.3% 73.7% 73.9% 73.9%

NATO, Defence Expenditure of NATO Countries (2010-2017), Communique PR/CP(2018)16, March 15, 2018, https://www.nato.int/cps/ic/natohq/topics_49198.htm, and https://www.nato.int/cps/ic/natohq/news_152830.htm.

Current Millions of U.S. Dollars

Page 35: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

U.S. vs. NATO European and Canadian Military Spending

35NATO, Defence Expenditure of NATO Countries (2010-2017), Communique PR/CP(2018)16, March 15, 2018, https://www.nato.int/cps/ic/natohq/topics_49198.htm, and https://www.nato.int/cps/ic/natohq/news_152830.htm.

Constant Millions of U.S. 2010 Dollars in Prices and Exchange Rates

Page 36: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

NATO’s “New” Central Region

36

Source: NATO, https://www.nato.int/nato-on-the-map/#lat=57.51557231238317&lon=0.6303670144091029&zoom=0&layer-1

Page 37: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Illustrative Shifts in Central Region Conventional Land and Air Forces: 1990 vs. 2017 - Ia

37

Page 38: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Illustrative Shifts in Central Region Conventional Land and Air Forces: 1990 vs. 2017 - IIa

38

Page 39: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

NATO’s “New” Southern Region

39

Source: NATO, https://www.nato.int/nato-on-the-map/#lat=57.51557231238317&lon=0.6303670144091029&zoom=0&layer-1

Page 40: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Illustrative Shifts in Southern Region Conventional Land and Air Forces: 1990 vs. 2017a

40

Page 41: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

NATO’s “New” Northern Region

41

Source: NATO, https://www.nato.int/nato-on-the-map/#lat=57.51557231238317&lon=0.6303670144091029&zoom=0&layer-1

Page 42: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Illustrative Shifts in Northern Region Conventional Land and Air Forces: 1990 vs. 2017a

42

Page 43: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

The Impact of the Rise in U.S. Military Spending in

FY2019-FY2023

43

Page 44: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

The Rise in U.S. Military Spending in FY2019

44

As for defense spending on real world military capabilities, the U.S. has already taken the lead. The preceding analysis has dealt with the scale and importance of U.S. military spending relative to NATO in terms of past spending. One of the most striking aspects of the Trump Administration’s strategy and commitment to the NATO alliance, however, is the scale of the increases it has made over the spending in past years, when the Budget Control Act set caps on U.S. defense spending, sharp cuts had to be made in spending plans, and readiness, modernization, and force strength all had to be cut.

The Trump Administration’s FY2019 budget defense budget request called for $686 billion for the Department of Defense’s base budget and overseas contingency operations in Afghanistan, Iraq, and elsewhere. That amounted to an inflation-adjusted increase of 4.3 percent increase over the 2018 request- which had made a significant increase over President Obama’s FY2017 request. These figures did not include some $30 billion more for nuclear weapons related spending by the Department of Energy.

The net increase during FY2018 and FY2019 was close to 9 percent overall, some $100 billion above the FY2017 level. 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.S. defense spending relative to Russia and to other NATO countries, and made major progress in reversing the past downward trend in readiness, modernization, and force strength. Moreover, the Department of Defense projections from the Future Year Defense Plan showed further rises in each year through FY2023, reaching a total of $741.8 billion in the baseline budget, or $787.8 billion if the Oversea Contingency Outlays (OCO) account is added in.

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.S. GDP will continue to drop in spite of this major increase in military spending. OMB projects a continuing drop since FY 2010, and a cut from 4.5% of the GDP in FY2010 to 3.1% in FY2019. This again illustrates the pointlessness of focusing on percent of GDP figures rather than real defense spending and what it actually buys.

Page 45: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Major U.S. Increase in FY2019 Military Spending

45

U.S. $74 billion increase in DoD FY2019 budget higher than NATO Estimate of any Total European 2017 Defense Budget: UK = $55.2 billion; France = $45.9 billion, Germany = $45.5 billion, Italy = $23.4 Billion

NATO, Defence Expenditure of NATO Countries, Press release PR/CP (2018)16, 15.3.18, https://www.nato.int/cps/ic/natohq/news_152830.htm. OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018.

Page 46: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Historic Increases in U.S. Defense Spending: FY1950-FY2019

46Travis Sharp, President Trump’s 2019 Defense Budget: Where Does It Really Rank, Historically?, Modern war Institute at West Point, April 27, 2018, https://mwi.usma.edu/president-trumps-2019-defense-budget-really-rank-historically/.

Truman’s fiscal year 1951 budget, driven by the Korean War and NSC-68, rose 151%

Page 47: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Where Defense Has Been and Where It is Going

47OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 48: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

DoD Future Year Defense Spending: FY2017-FY2023

48OSD Comptroller, National Defense Estimates for FY2019, “Green Book,” Department of Defense Budget for Fiscal Year 2019, April 2018, p. 1

Page 49: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

CBO Estimate of Cost of End of Budget Caps Under Budget Control Act (BCA)

49

• The Administration requested $575 billion for DoD’s base

budget for 2018. The Congress authorized $605 billion but has

not appropriated it

• That total will exceed DoD’s share of the BCA cap for 2018 by

$54 billion

• The cost of implementing the Administration’s goals through

2021 will exceed BCA caps by $295 billion, by CBO’s estimate

• Reports suggest the 2019 budget request will exceed CBO’s

estimate of about $600 billion for 2019

Page 50: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

End of Budget Caps

50OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 51: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Key Top Line Outlays for DoD and DoE in FY2017- FY2019 with Adjusted Budget Cap

51OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 52: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

DoD Top Line Budget Authority in FY2017- FY2019

52OSD Comptroller, US Department of Defense, Defense Budget Overview, February 2018, p. 1-2

Page 53: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

DoD Military Spending Has Been Well Over 2% of GDP NATO Goal, But Will Poses a Steadily Lower

“Burden” on the U.S. Economy(DoD is Only 86% of Total. Real FY2019 Percent is 3.6%)

53OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 54: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Major Increases in U.S. Spending on the European

Defense Initiative

54

Page 55: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

U.S. Spending on the European Defense Initiative

55

The U.S. does not have a functioning program budget and has long cease to report its spending on NATO. It is clear, however, that much of this increase will affect U.S. capability to support its European allies.

The most immediate indication is the one area where the U.S. specifies specific increases in spending for the European Defense Initiative (EDI) -- the key areas where the U.S. is joining with its allies to strengthen its immediate capability to respond to any threat from Russia. The U.S. FY2019 request from this program is for $6.531 billion -- a 91% increase over the Obama Administration's request for $3.4 billon in FY2017.

The full OSD Comptroller description of the program is 18 pages long, and covers a wide range of immediate improvements in U.S. deployments and rapid reinforcement capabilities for NATO. The Comptroller of the Office of the Secretary of Defense (OSD) summarizes this effort as follows,

The EDI provides one of the primary funding sources for U.S. European Command’s (USEUCOM), and its Service Components’, ability to respond to an evolving European security environment. The 47 activities proposed within the FY 2019 EDI request:

1. Continue to enhance our deterrent and defense posture throughout the theater by positioning the right capabilities, in key locations, in order to respond to adversarial threats in a timely manner.

2. Assure our NATO Allies and partners of the United States’ commitment to Article 5 and the territorial integrity of all 28 NATO nations.

3. Increase the capability and readiness of U.S. Forces, NATO Allies, and regional partners, allowing for a faster response in the event of any aggression by a regional adversary against the sovereign territory of NATO nations.

It supports an average strength of approximately 9,903 active, reserve, and guard personnel in USEUCOM, including 9,095 Army 350 Navy and 458 Air Force personnel. These personnel will participate in multiple activities throughout the theater, including rotations to increase the temporary presence or strengthen allied/partner capacity during planned exercises, the expansion in size and scope of planned exercises for enhanced NATO interoperability, support to USEUCOM's Joint Exercise Program (JEP), and Joint Multi-National Readiness Center (JMRC) training events.

The persistent presence of air, land, and sea forces throughout Europe is the cornerstone of the United States’ commitment to NATO Article 5. The FY 2019 EDI budget request provides the funds necessary to increase the number of rotations present throughout the USEUCOM area of responsibility (AOR).

Page 56: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

56

...Increasing the presence of U.S. forces in Europe through the deployment of rotational forces (e.g. heal-to-toe presence of ground combat forces and enablers) as well as deferring previously-planned force reductions (e.g. retaining theater air superiority), provides for a more robust U.S. military presence throughout the European theater. This increase presence provides the USEUCOM Commander with a credible force posture capable of deterring and, if required, defeating threats posed by regional adversaries. The Services in coordination with USEUCOM, are developing options to best utilize equipment and forces to counter regional threats.

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.

Page 57: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

U.S. European Defense Initiative: FY2017-FY2019: ($3.1 billion higher in FY2019 than FY2017: 91% increase)

57

The 47 activities proposed within the FY 2019 EDI request:

1. Continue to enhance our deterrent and defense posture throughout the

theater by positioning the right capabilities, in key locations, in

order to respond to adversarial threats in a timely manner.

2. Assure our NATO Allies and partners of the United States’ commitment to

Article 5 and the territorial integrity of all 28 NATO nations.

3. Increase the capability and readiness of U.S. Forces, NATO Allies, and

regional partners, allowing for a faster response in the event of

any aggression by a regional adversary against the sovereign territory of NATO

nations.

OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 58: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Major Rises in Transatlantic Mission Capability from

FY2019 Onwards

58

Page 59: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

U.S. Spending on Transatlantic Mission Capability

59

The most important aspect of the increase in the U.S. defense spending, however, is not in forces dedicated to NATO and the defense of Europe, but rather in the overall global pool of U.S. forces and power projection capabilities the U.S. can deploy in an emergency or actual conflict. The U.S. defense budget summary only covers the impact of FY2019 spending, but it literally involves hundreds of pages of increases in personnel, O&M and readiness improvements, and investments in power projection and forward deployed forces – investments that include major new submarines, F-35 stealth fighters, and a wide variety of precision guided land and air weapons.

The U.S. budget justification notes that European security is a key area of focus:

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 itsfavor. The use of emerging technologies to discredit and subvert democratic processes in Georgia, Crimea, and eastern Ukraine isconcern enough, but when coupled with its expanding and modernizing nuclear arsenal the challenge is clear.

Mutually beneficial alliances and partnerships are crucial to the DoD strategy, providing a durable, asymmetric strategic advantage that no competitor or rival can match. This approach has served the United States well, in peace and war, for the past 75 years.Allies and partners aided the United States after the terrorist attacks on 9/11—the only time NATO has invoked the mutual defense clause, Article 5—and have contributed to every major U.S.-led military engagement since.

... The United States will strengthen and evolve its alliances and partnerships into an extended network capable of deterring ordecisively 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.

Key new areas of spending include:

• Increasing end strength for the Army, Navy and Air Force (+25,900),

• Continuing the Department's Missile Defeat and Defense Enhancement (MDDE) initiative,

• Increasing procurement of preferred and advanced munitions,

• Modernizing equipment for the second Army Armored Brigade Combat Team (ABCT),

• Buying ten combat ships in FY 2019,

.

Page 60: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

60

• Increasing production of the F-35 aircraft and F/A-18 aircraft,

• Enhancing deterrence by modernizing the nuclear triad,

• Increasing funds to enhance communications and resiliency in space,

• Supporting U.S. Armed Forces with a pay raise of 2.6 percent, and

• Increasing the emphasis on technology innovation for increased lethality.

Once again, however, these major increases in U.S. capability to defend Europe lack a meaningful set of matching European military force goals, and the U.S. is now dependent not only on European military forces but European reception and transit facilities so it can rapidly deploy.

This is particularly critical because the size of the U.S. forces deployed in Europe is so much smaller today than during the time of the Cold War. The U.S. had 244,100 uniformed personnel deployed in Germany in 1990. It has 36,300 deployed in Germany today. The U.S. had 27,400 uniformed personnel in Britain in 1990. It has 8,300 deployed in Britain today.

Recent exercises warn that the lack of adequate European reception and transit facilities sharply reduces the capability of evenexisting U.S. forces to deploy in Europe, as well as to supply and sustain such forces once they do deploy. The NATO military have already highlighted many of the steps needed to change this situation, and once again, such steps have far higher priority than meeting NATO's nonsense level of effort goals for percent of GDP and share of defense spending on equipment.

.

Page 61: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Spending Increases by Category: FY20128-FY2019

61

OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 62: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

Rises in Military End Strength: FY2018-FY023

62

OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 63: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

FY2019: Major Increases in Readiness

63OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 64: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

FY2019: Investments in Power Projection - I

64OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 65: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

FY2019: Investments in Power Projection - II

65OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 66: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

FY2019: Investments in Power Projection - III

66OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 67: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

The Uncertain Challenge of Terrorism

67

Page 68: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

The Counterterrorism Mission

68

Most U.S. and allied spending on counterterrorism inside the U.S., Canada, and Europe takes place in internal security and law enforcement operation, and intelligence areas where there is little reliable unclassified reporting. It is important to note, however, that terrorism continues to be a major challenge to the Transatlantic alliance, and that most operational spending on out of area counterterrorism activities is made by the United States.

Moreover, most Transatlantic Cooperation infighting terrorism and violent extremism outside the U.S., Canada, and Europe takes the form of military counterinsurgency warfare, asymmetric warfare, or paramilitary operations against armed groups. This poses a challenge in terms of power projection, training and equipment for different kinds of warfare, different IS&R needs, and operating with strategic partners against threats that both have radically different cultures and social norms.

The U.S. and its Canadian and European partners as also learning from some 17 years of warfare in Afghanistan that fighting major counterinsurgency actions may contain a threat, but not defeat one. It is clear from the global trends just in terrorist forces that the defeat of ISIS, and operations against the Taliban, cannot defeat this threat. They are only a relatively small part of the global threat, and much of that threat can either begin to operate in Europe or North America or influence the rise of native terrorism in Europe, Canada, and the United States.

Moreover, the patterns of fighting against violent extremism and terrorism both within and outside Europe, Canada, and the United States differ significantly more than the military threats immediately outside NATO’s borders. The require forces tailored to the specific mission, and generally to the needs of a special partner's military, paramilitary, and security forces.There is much that can be done on a Transatlantic basis, but every aspect of planning and operations must also be tailored to national needs.

.

Page 69: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

U.S. Overseas Contingency Outlays: FY2017-FY2019:

69OSD Comptroller, US Department of Defense, FY2019 Budget Request, February 2018. http://comptroller.defense.gov/Budget-Materials/Budget2019/.

Page 70: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

The Dominant External Threat of Terrorism: 2000-2016(Numbers of Incidents by Region)

70

START Data Base, https://www.start.umd.edu/gtd/search/Results.aspx?chart=country&casualties_type=b&casualties_max=&start_yearonly=2001&end_yearonly=2016&dtp2=all&country=21,32,38,54,55,69,75,78,90,98,142,151,161,162,166,179,180,185,603,217

Page 71: CSIS Center for Strategic and International Studies 1616 ......President Trump's new National Security Strategy (NSS), issued in December 2017, describes Russia and China as the two

The Complex National Patterns in Terrorism: 2000-2016(Numbers of Incidents in Selected Countries)

71

START Data Base, https://www.start.umd.edu/gtd/search/Results.aspx?chart=country&casualties_type=b&casualties_max=&start_yearonly=2001&end_yearonly=2016&dtp2=all&country=21,32,38,54,55,69,75,78,90,98,142,151,161,162,166,179,180,185,603,217