DEFENCE

Intro: Mr Trump is right to ask serious questions about the budgetary imbalance

The visit by Theresa May last month to Washington won an important acknowledgement from President Donald Trump: ‘he was 100 per cent behind NATO’. This was perceived as something of a coup given Mr Trump’s apparent indifference towards the 70-year-old alliance. His principal objection was not so much its existence as to the disproportionate contribution being made by the United States to its upkeep. By some measures, America pays 75 per cent of the total of NATO spending, most of which provides for the defence of Europe.

Donald Trump’s view – and, also, that of President Obama before him – is that Europe should shoulder a bigger share of that burden. A NATO symposium in Cardiff a few years ago proposed a minimum standard: that all NATO members should spend two per cent of their GDP on defence. This suited the UK because we have been meeting are two per cent commitment. According to the Government and NATO we continue to do so. A think-tank report, however, has caused consternation in Whitehall by suggesting all is not as it seems.

According to The International Institute for Strategic Studies (IISS), last year’s figure was put at 1.98 per cent, below the NATO standard. The report claims that in Europe, only Greece and Estonia met the 2 per cent target in 2016. It has been suggested that the UK fell slightly short of the target because the economy grew faster than expected. The cash shortfall equates to around £380million. The British Government has responded by denouncing the calculation as “wrong” and has pointed to official NATO statistics from last July which put the UK’s defence spending for 2016 at 2.21 per cent of GDP. The Ministry of Defence has blamed exchange rate fluctuations caused by the drop in the value of pound sterling for the IISS ‘miscalculation’.

But this argument is largely specious – superficially plausible, but actually wrong – because, what matters is not a smoke-and-mirrors-game played with national budgetary statistics, but the provision for an adequate defence of Europe (largely paid for by the countries of Europe). Mr Trump is right to ask serious questions about the budgetary imbalance. The recent revelations that the Royal Navy’s entire fleet of seven attack submarines was out of action indicates that this is more than just massaging budgets; what matters is having the military capability to defend the nation and contribute to the requirements of the alliance whenever necessary. The politics and intergovernmental wrangling are secondary to the provision of effective defence systems; and the UK – and many others in Europe – need to pay their proper share towards them.