In the era of tightening budgets, most European states are making hefty cuts to their military budgets, forcing Europe to reassess its role within NATO—and raising questions about the future of the alliance.
Except for two small countries, Denmark and Slovenia, in 2010 every European member of NATO cut their military expenditures (some like Bulgaria by nearly 40 percent), according to the Center for European Reform.
Budget restrictions amid the economic crisis have intensified a trend that began at the end of the Cold War in 1989. At that time, European NATO members spent on average 3.7 percent of their GDP on defense. By 2011, that has dropped to 1.7 percent. Only Greece and Great Britain currently spend more than 2 percent.
On July 1, Germany ended its military conscription, after 55 years, mostly for budgetary reasons. Germany’s Bundeswehr will now turn into a voluntary army that is smaller and cheaper, following the practice of most other European states.
During the Cold War, the biggest threats facing European countries came from European neighbors on the other side of the iron curtain. After the fall of the Berlin Wall, the EU (and before it the European Community) as well as NATO underwent an eastward expansion. Since then, 15 countries have joined the EU and 12 have joined NATO, mostly from Eastern Europe. While not quite functional yet, the EU has also been working on a joint European defense policy.
NATO now has 28 member states, which include the United States, Canada, and 26 European countries.
The United States spent 4.7 percent of its GDP, or $530 billion, on defense in 2010. America has been increasing its defense budget since the late 1990s, especially post-9/11. The Department of Defense requested a budget for 2012 $22 billion higher than what it spent in 2010.
This trend sparked a frank reaction from Robert Gates, who retired as secretary of defense in June after five years of service under two presidents. In his final policy address in Brussels, he warned of a "dismal future" for NATO, if the burden is not shared more equally.
Gates spoke of a "two-tiered alliance … between those willing and able to pay the price and bear the burdens of alliance commitments, and those who enjoy the benefits of NATO membership."
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