Implications of an Economic Recession on European Defense

This decade is a period in time characterized by financial crisis and economic recession. The impacts of fiscal constraints are causing governments to examine their roles in the defense and security market. Constrained, and even decreasing, defense budgets are forcing hard choices between social welfare programs and defense structure. Traditionally, states protect national defense industries and extensively tie their existence to national sovereignty, security, employment, and technology protection. The underlying protectionism provides friction in a budgeting process under extreme pressure. The current issues are not new to Europe or the United States. However, the issues are forcing hard decisions that may not be in the best interest of the United States. Europe is on the verge of no longer being a credible military partner of the United States. A new construct that equitably allocates security responsibility is required. The financial crisis in 2007-2008 and the subsequent recession warrant a review to the impact on the United States security system and military relationship with Europe. More importantly, the review needs to consider the future roles of the European Union (EU) and the North Atlantic Treaty Organization (NATO) and their ability to meet security requirements. Since the end of WWII, the largest share of the burden to defend Europe has fallen on the United States. The United States and NATO need to engage the European Union and forge a solution that leverages the military power of NATO and the civilian reach of the Common Security and Defense Policy. Strategy Research Project.