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NATO pushes for joint projects in lean times: general
by Staff Writers
Norfolk, Virginia (AFP) May 10, 2012

Panetta warns Congress against extra Pentagon funds
Washington (AFP) May 10, 2012 - US Defense Secretary Leon Panetta scolded Republican lawmakers Thursday for adding what he deemed to be unnecessary expenses to the Pentagon's budget, warning it could lead to "gridlock."

The Pentagon chief spoke after the Republican-led House Armed Services Committee approved a defense budget that added funds for a study on a possible East Coast missile defense site and for modernizing US Navy cruisers that were due to be retired.

The panel approved a bill for a base defense budget of $554 billion, which committee Chairman Buck McKeon says is about $4 billion more than what President Barack Obama's administration wants to be spent for fiscal 2013 in order to meet cost-cutting targets.

The lawmakers also authorized $88.5 billion for the war in Afghanistan and other counterterrorism efforts, in line with the Pentagon's request.

"My concern is that if Congress now tries to reverse many of the tough decisions that we reached by adding several billion dollars to the president's budget request, then they risk... potential gridlock, because it's not likely that the Senate will go along with what the House did," Panetta told reporters.

He warned that the bill, which must be voted by the entire House before heading to the Democrat-led Senate, "could force the kind of trade-offs that could jeopardize our national defense."

The chairman of the Joint Chiefs of Staff, General Martin Dempsey, said the committee's extra funding for a study on a possible new missile defense site on the US East Coast was not necessary.

"In my military judgment, the program of record for ballistic missile defense for the homeland, as we've submitted it, is adequate and sufficient to the task," he said.

"I don't see a need beyond what we've submitted in the last budget."

Fiscal pressure has forced military chiefs to scale back projected spending by $487 billion over the next decade, a task they have described as tough but manageable.

But a threat of dramatic defense cuts also looms on the political horizon.

If Congress fails to agree by January 2013 on how to slash the deficit, dramatic defense reductions of about $500 billion would be automatically triggered under a law adopted last year.

"The Department of Defense and I believe the administration are not going to support additional funds that come at the expense of other critical national security priorities," Panetta said, warning that "there is no free lunch here."

"And if members try to restore their favorite programs without regard to an overall strategy the cuts will have to come from areas that could impact overall readiness."

The panel's bill also cancels an increase in military health care benefits.


To avoid an alliance divided into first- and second-class armies, NATO plans to launch more than 20 joint projects to share costs of military hardware and promote a new mindset on weapons buying, according to a top French general.

With defense budgets under pressure, the initiative -- dubbed "smart defense" -- will be a top priority when NATO members gather in Chicago for an alliance summit on May 20-21, General Stephane Abrial told AFP in an interview.

As head of Allied Command Transformation in Norfolk, Virginia, the first European to fill the post, Abrial has been assigned the task of putting the idea of cooperation into action.

The concept is straightforward: with economic troubles forcing a decline in military spending among all the allies, "it is more and more difficult in all the alliance countries to acquire, much less to maintain capabilities" necessary to carry out NATO military missions, he said.

And when it comes to defense, the gap between the United States and its European allies is steadily growing, with America accounting for about 75 percent of all NATO military spending.

The NATO-led air war in Libya last year drove home the transatlantic disparity and the stark realities for Europe's armed forces: a serious shortage of aerial refueling tankers, surveillance drones and precision-guided bombs.

NATO officials hope the "smart defense" program will help rectify the problem, by setting priorities, pooling limited resources and coordinating investments.

One of the projects to be unveiled in Chicago, led by Denmark, focuses on the "joint management of munitions," said Abrial, the former chief of the French air force.

"One could imagine a framework based on an agreement between countries, eventually to acquire jointly or store what they already have in a single warehouse, and share the costs of the storage and maintenance," he said.

Each government would have the right to draw from the stockpile based on the level of their contribution.

"In the past, countries would sit around a table and would put together a kind of wish list of things that we lacked and which we would work toward," he said. "Then the next phase of realizing the plan would be more or less unpredictable."

But now the approach is the different, he said.

"We went to these countries, and in each case we have asked them what they would like to do," in which area or which country do they want to cooperate with on projects for new equipment or training, he said.

To promote efficiency and concrete results, the projects are led by small teams and organized with a limited number of participating governments, between "three and eight countries maximum," he said.

The task for NATO is to coordinate the various projects and ensure the outcome fits in with the alliance's needs, while overcoming concerns about sovereignty and competition for local defense industries.

"The big advantage of this initiative is that it reconciles the national interests of each country and the collective interests of the alliance," he said.

In Chicago, heads of state plan to endorse "20 to 25 projects that we will start to put in place immediately afterward," he said.

"These projects will serve as a demonstration of the concept that will allow us to view Chicago not as an end in and of itself, but as a launching pad, a springboard for changing our mindset" on how to move the alliance forward, he said.

A number of projects are concentrated on expanding training, for helicopter pilots, ground crews and mountain warfare at an instruction center in Slovenia.

"These projects are starting at a relatively modest level, the goal being to put the new ideas into practice, and without making them too complex, too long or, of course, too expensive," he said.

In a second round, "one could take on much more complex projects, of longer duration and with a more significant budget," said Abrial.

For now, the general and NATO's leaders hope fiscal and strategic realities will persuade member states to sacrifice a degree of sovereign control in return for a stronger -- and less lopsided -- military alliance.

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Australia touts defence spending despite cuts
Sydney (AFP) May 10, 2012 - Australian Defence Minister Stephen Smith defended Canberra's military spending as "far greater" than its regional neighbours Thursday after an Aus$5.5 (US$5.55) billion budget cut.

Smith said Australia would spend Aus$103.3 billion on defence over the next four years, maintaining "Australia's status in the top 15 nations in terms of world defence expenditure".

"In real dollar terms, we spend far greater than any of our regional neighbours," he said.

The remarks were made as Smith announced the Aus$1.4 billion purchase of 10 Italian Alenia C-27J Spartan Battlefield Airlift aircraft to replace Australia's ageing Caribou fleet, which were retired from service in 2009.

He said it demonstrated the government's commitment to a strong airforce capability -- "a critical element of our national security capability even in times of fiscal difficulty".

Defence was the major target of aggressive government spending cuts worth some $33.6 billion unveiled in this week's budget, with the deferral of 12 F-35 Joint Strike Fighter jets and 35 self-propelled howitzer artillery pieces.

Other projects were also delayed or cancelled and 1,000 civilian staff sacked, just weeks after the first of 2,500 US Marines to be stationed in northern Australia under a new military pact began their posting.

US President Barack Obama and Australian leader Julia Gillard unveiled the major expansion of military ties late last year, in a move designed to bolster Washington's presence in the region, which irked Beijing.

Smith said the C-27J had missile-warning systems, electronic self-protection, secure communications and battlefield armour allowing it to operate in "high-threat" environments.

It was selected ahead of the Airbus Military C295 and could undertake a "wide range of missions from delivering ammunition to front line troops to undertaking aero-medical evacuation of casualties", said Smith.

The first deliveries would be taken in 2015 through a foreign military sales agreement with the US, with a separate contract to be struck with Alenia for the operation, maintenance and modification of the fleet.

Italy's Finmeccanica wins 800m euro Australia contract
Milan (AFP) May 10, 2012 - Italian aerospace giant Finmeccanica said on Thursday it had won a contract worth more than 800 million euros ($1.0 billion) to supply 10 C-27J Spartan transport planes to the Australian military.

"The first aircraft are expected to be delivered in 2015," the company said in a statement, adding that the deal included "support equipment, several years of initial logistic support, training for aircrew and maintenance personnel."

The Alenia C-27J is a mid-sized military transport aircraft.

"This achievement represents a milestone in Finmeccanica's strategic expansion in the high-potential international markets like Australia," it said.

Finmeccanica shares rose 3.61 percent to 2.93 euros on Milan's stock exchange following the announcement.



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Linkoping, Sweden (UPI) May 9, 2012
Sweden's premier defense and security company, Saab, is strengthening its relationship with a Brazilian integrator of aero-structures. Saab, that maker of the Gripen jet fighter that has partnered in the past with the company Akaer, said it is now financially investing in the company. The investment is equivalent to a 15 percent stake in Akaer, whose advisory board will now inclu ... read more


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