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20110623ATT22406EN.Pdf DIRECTORATE-GENERAL FOR EXTERNAL POLICIES OF THE UNION DIRECTORATE B POLICY DEPARTMENT THE IMPACT OF THE FINANCIAL CRISIS ON EUROPEAN DEFENCE ANNEX (Events taken into account until 1. April) EXPO/B/SEDE/FWC/2009-01/LOT6/11 APRIL 2011 PE 433.830 EN Policy Department DG External Policies TABLE OF CONTENTS ABBREVIATIONS....................................................................................................................... 6 1 STRUCTURE AND METHODOLOGICAL CONSIDERATIONS ........................................10 2 CATEGORY A .................................................................................................................11 2.1 France ....................................................................................................................................... 11 2.1.1 Impact of the Financial Crisis on the Defence Budget.........................................................................11 2.1.2 Armed Forces: Structural Reforms in Light of Recent Budgetary Cuts ..........................................12 2.1.3 Level of Ambition and International Engagement ...............................................................................14 2.1.4 Pooling and Sharing Options........................................................................................................................14 2.1.5 Defence Industry...............................................................................................................................................14 2.2 Germany ................................................................................................................................... 15 2.2.1 Impact of the Financial Crisis on the Defence Budget.........................................................................15 2.2.2 Armed Forces: Structural Reforms in Light of Recent Budgetary Cuts ..........................................16 2.2.3 EU Pooling and Sharing Options .................................................................................................................17 2.2.4 Defence Industry ...............................................................................................................................................18 2.3 Italy ........................................................................................................................................... 19 2.3.1 Impact of the Financial Crisis on the Defence Budget.........................................................................19 2.3.2 Armed Forces: Structural Reforms in Light of Recent Budgetary Cuts ..........................................19 2.3.3 Level of Ambition and International Engagement ...............................................................................21 2.3.4 Pooling and Sharing Options........................................................................................................................21 2.3.5 Defence Industry...............................................................................................................................................22 2.4 Poland ....................................................................................................................................... 22 2.4.1 General Defence Policy Outlook..................................................................................................................22 2.4.2 Impact of the Financial Crisis on the Defence Budget.........................................................................23 2.4.3 Armed Forces: Structural Reforms in Light of Recent Budgetary Cuts ..........................................23 2.4.4 Level of Ambition and International Engagement ...............................................................................24 2.4.5 Pooling and Sharing Options........................................................................................................................24 2.4.6 Defence Industry...............................................................................................................................................25 2.5 Spain ......................................................................................................................................... 25 2.5.1 Impact of the Financial Crisis on the Defence Budget.........................................................................25 2.5.2 Armed Forces: Structural Reforms in Light of Recent Budgetary Cuts ..........................................26 2.5.3 Level of Ambition and International Engagement ...............................................................................26 2.5.4 Pooling and Sharing Options........................................................................................................................27 2.5.5 Defence Industry...............................................................................................................................................27 2 The Impact of the Financial Crisis and Cuts in Member States' Defence Budgets - How to spend Better within the EU 2.6 Sweden...................................................................................................................................... 27 2.6.1 General Defence Policy Outlook..................................................................................................................27 2.6.2 Impact of the Financial Crisis on the Defence Budget.........................................................................28 2.6.3 Armed Forces: Structural Reforms in Light of Recent Budgetary Cuts ..........................................28 2.6.4 Level of Ambition and International Engagement ...............................................................................29 2.6.5 Pooling and Sharing Options........................................................................................................................30 2.6.6 Defence Industry...............................................................................................................................................30 2.7 United Kingdom ....................................................................................................................... 31 2.7.1 General Defence Policy Outlook..................................................................................................................31 2.7.2 Impact of the Financial Crisis on the Defence Budget.........................................................................32 2.7.3 Armed Forces: Structural Reforms in Light of Recent Budgetary Cuts ..........................................32 2.7.4 Changes in Defence cooperation................................................................................................................33 2.7.5 EU Pooling and Sharing Options .................................................................................................................33 2.7.6 Defence Industry...............................................................................................................................................34 3 CATEGORY B..................................................................................................................35 3.1 Austria....................................................................................................................................... 35 3.1.1 General Defence Policy Outlook..................................................................................................................35 3.1.2 Impact of the Financial Crisis: Budget and Procurement....................................................................35 3.1.3 Armed Forces: Structural Reforms in Light of Recent Budgetary Cuts ..........................................36 3.1.4 Level of Ambition and International Engagement ...............................................................................37 3.1.5 Pooling and Sharing Options........................................................................................................................37 3.2 Belgium..................................................................................................................................... 37 3.2.1 Impact of the Financial Crisis on the Defence Budget.........................................................................38 3.2.2 Armed Forces: Structural Reforms in Light of Recent Budgetary Cuts ..........................................38 3.2.3 Level of Ambition and International Engagement ...............................................................................39 3.2.4 Pooling and Sharing Options........................................................................................................................39 3.3 Bulgaria..................................................................................................................................... 40 3.3.1 Impact of the Financial Crisis on the Defence Budget.........................................................................40 3.3.2 Armed Forces: Structural Reforms in Light of Recent Budgetary Cuts ..........................................40 3.3.3 Level of Ambition and International Engagement ...............................................................................41 3.3.4 Pooling and Sharing Options........................................................................................................................41 3.3.5 Defence Industry...............................................................................................................................................42
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