The budget of the armies targeted in the face of the economic crisis
(B2) (updated February 18) This blog had echoed the difficulties of the Polish and Slovak armies. The trend seems to be confirmed and even accelerated (since my last article of october last one I was wondering about). Because the financial crisis is hitting everywhere. Faced with the budgetary needs of each government, the armies are therefore asked to tighten their belts (like everyone else). This affects either external operations (as in France, Poland, etc.), or certain equipment (Poland, Slovakia, Russia, USA, United Kingdom, etc.), or personnel (Slovakia, Romania, etc.). We bet that this first series of cuts will be followed by others if the economic crisis continues. All States need to find resources in the face of additional expenditure and to make up for the decline in revenue.
• In Poland. We begin to identify which contracts are in the crosshairs of savings, after the government meeting on the revision of budget lines. Besides the suspension of
some assignments abroad, the contract concluded with the Norwegian Kongsberg to equip the coasts and ships with missiles is called into question (or at least renegotiated for payment/delivery deadlines). Similarly, the purchase of second-hand American armored vehicles of the MRAP Cougar type (which the Polish army uses in Afghanistan and which it has borrowed from the Americans until now) could be compromised.
• In Romania, a plan to reduce the workforce of the central administration of the Ministry of Defense by one fifth has been decided. A decision that comes after the one announced last October to postpone the purchase of fighter jets. The defense budget can drop below the 2% mark to reach 1,5%.
• In Slovakia. After one first series cuts (closure of headquarters, etc.). A quarter of the army's civilian workforce took the door (or the posts cut) at the end of January. And according to the daily SME, these cuts could affect professional soldiers: 10% of the workforce (1600 soldiers out of a workforce of 16) could thus leave or not be renewed. Information that the Ministry of Defense denies. On the other hand, it seems that certain equipment programs could be postponed, in particular the purchase of vehicles to replace the PRAGA V0000S and transport planes.
• At United Kingdom. The atmosphere is tense. A battle opposes the Treasury to the Ministry of Defense for the financing of certain materials. Gordon Brown (when he was Chancellor of the Exchequer, Minister of Finance), had asked the Treasury to support urgent operational equipment (UOR). But, as reported by Financial Times, the officials of the Ministry of Finance are now reluctant to pay for all the excesses of the programs and are asking Defense to dip into its funds. A budget of £635 million has been provisioned for 2009-2010. What she can no longer being strangled budgetary. However, this equipment is necessary (armoured, UAV...), the government having apparently largely underestimated the need for equipment, and the under-equipment, of the British army in the face of such a large and long conflict. than that of Afghanistan. Although it is not yet official, the only solution would be the revision of some heavier equipment programs. Here again...
Elsewhere, it's not better...
• In Russia, Russian defense budget could be cut by 15% because of the crisis, announced to RIA Novosti on Thursday the deputy chairman of the Duma Committee for the
defence, Mikhail Babitch. Asked if this figure was definitive, the parliamentarian replied that "everything would depend on the economic development of the country"."However, we will do everything in our power to preserve the public order of armaments and the social guarantees enjoyed by the military.“, added the elected official. The Russian public order amounts to more than 29 billion euros (1300 billion rubles) and 89 billion euros for 2009-2011 (4000 billion rubles). (updated): a decrease formally denied by President Medvedev, on February 19, "budgetary expenditure on armaments and social allowances granted to the military will not be reduced".
• Same in the United States, the time for severe cuts in certain programs has arrived. As Robert Gates, US Secretary of Defense explained, "this department faces difficult choices among competing priorities and programs. (...) It is now clear that with today's economic realities, we are unable to place as much as the war cost as we would have liked as soon as we would have liked into the base budget". Among the programs targeted is the (expensive) F-22 fighter jet program, recognized Robert Gates, the Secretary of State for Defense, Tuesday, during a press conference. But it would not be the only. "It's obviously one of the programs that, along with a number of others -- many others -- that we will be looking at"Said Gates. The American budget amounts to more than 500 billion $ (excluding Iraq and Afghanistan expenses). To read the press conference script.
