Press Release (96)1

Seminar at NATO HQ, Brussels, on "Economic Aspects of Defence Expenditures and Legislative Oversight of National Defence Budgets" on 14th-15th December 1995. 2 January 1996 Some 50 experts from 8 Allied and 12 Partner countries (1) met in Brussels on 14th and 15th December 1995 to discuss current problems in the assessment of defence expenditure, the analytical and practical aspects of integrating defence spending with developments in the rest of the economy, and the function of legislative oversight in improving the economic efficiency of defence programmes. Their exchanges took place in circumstances of strong pressures in most countries for continued reduction of defence spending, in the interests of containing public deficits or of favouring non-defence programmes. Public finances of many Central and Eastern European countries are also constrained by the requirements of bringing down high inflation rates, and of re-structuring their economies towards the market system. Many NACC members are adapting and re-equipping their armed forces, in line with the new inter-national security environment, and the development of their responsibilities in peace-keeping and humanitarian activities. Against this background, the experts analysed the recent evolution of defence spending under both national programmes and NATO's collective activities. They established ways in which they could cooperate to improve methods of measuring defence expenditure, and to improve international comparisons. They identified economic techniques for facilitating national defence planning and management, especially by the more active involvement of elected assemblies in formulating, examining and criticising defence activities under market democracy. The experts' work will be carried forward during the coming year under the 1996/97 NACC Work Plan. Notes: (1) Albania, Armenia, Belarus, Belgium, Bulgaria, Canada, France, Germany, Hungary, Kyrgyzstan, Moldova, Norway, Poland, Portugal, Romania, Federation of Russia, Slovakia, Slovenia, U.K., U.S.A.