Sovereign Debt Crisis: An Opportunity for NATO Reform

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Sovereign Debt Crisis: An Opportunity for NATO Reform

C. F. Schlegel

While the North Atlantic Treaty Organization (NATO) is still the most powerful political and military alliance in the world, recent operations in Afghanistan and Libya have highlighted the chronic underfunding of defense by European nations and its negative long-term implications for the Alliance. Simultaneously, Europe finds itself in no fiscal shape to increase defense spending as it is in the midst of its greatest economic challenge since the founding of the Alliance, the sovereign debt crisis. NATO members can use this crisis to make the necessary changes to strengthen the Alliance and posture it for a bright future, but it will require difficult decisions by members. NATO members need to embrace the concept of 'Smart Defence' as proposed by the NATO Secretary General and stop the downward trajectory of defense spending. By taking bold steps such as pooling resources, consolidating an excessive number of European defense contractors, eliminating national caveats on troop contributions, and committing to a new plan for minimum defense spending, NATO can posture itself to address future global security challenges and strengthen the Alliance for decades to come.