NATO facing 1 billion dollar budget shortfall, say diplomats

Istanbul - NATO defence ministers were set to meet in Istanbul on Thursday to discuss cuts to the alliance's budget in the face of an almost-1-billion dollar shortfall, diplomats said. A diplomat from a NATO-member state told journalists on condition of anonymity that the alliance faces a 890-million-dollar shortfall out of its 1.8 billion annual investment budget, due to higher-than- expected spending on infrastructure in Afghanistan.

Over the course of 2010 NATO is due to add almost 40,000 troops to the 85,000 already in Afghanistan as part of the International Security Assistance Force (ISAF).

There is also 85 million dollars missing from a 800 million dollars budget for permanent military spending and 30 out of 585 million dollars foreseen for military operations on the ground.

Only the 290 million dollars reserved for the civilian budget, covering salaries and pensions, is said to be fully accounted for.

"We have launched too many projects without thinking about the financial implications," a diplomat another diplomat told reporters Thursday.

Ministers are due to discuss the budget crisis over dinner, but no decision on how to fill the budget gap is expected before March.

One solution being suggested is a 100-million-dollar one-off payment to NATO to cover immediate spending needs, to be split among member states according to a formula still to be worked out.

Further budget worries are expected to surface Friday, when NATO ministers are to discuss operations in Afghanistan. According to information supplied by the alliance, so far member states have pledged only 368 million dollars out of the 1,8 billion required annually for the trust fund established to support the Afghan National Army (ANA).

Even bigger sums of money are to be collected to support the expansion of the ANA from 134,000 to 171,600 by the autumn of 2011, a target agreed by the international community in January.

Defense spending has been put under increasing strain by the financial crisis, which sent deficit and debt levels ballooning in most NATO countries.

The issue is also expected to figure at the Munich Security Conference, an annual high-level meet taking place this weekend in Germany which will be attended by several of the defence ministers present at Istanbul.

Source: Earth Times.
Link: http://www.earthtimes.org/articles/show/307537,nato-facing-1-billion-dollar-budget-shortfall-say-diplomats.html.