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21 Jun 24. Rutte in line for Nato SG as record number of members hit spending target. Russia’s shadow, a new leader and a reassessment of European defence integration has pushed Nato members to meet the 2% target.
Dutch Prime Minister Mark Rutte was yesterday (20 June) all but confirmed as Nato’s next Secretary General after the only other candidate, Romanian President Klaus Iohannis, told the military alliance he would withdraw his bid.
Rutte, a staunch Ukraine supporter who has received praise for dealing with former US President Donald Trump, gained the candidacy endorsement of key players including Germany, France, the UK and the US.
Hungary, Turkey and Romania initially expressed reservations but are now reportedly on board with Rutte replacing the incumbent Jens Stoltenberg when his term finishes in October.
The news came days after Stoltenberg announced that a record number of Nato members – 23 of the total 32 nations – will this year meet the alliance’s key goal of spending 2% of GDP on defence.
This includes Nato’s two newest members, Sweden and Finland. The accessions of the two Nordic countries were prompted by fears of Russian invasion – a shadow that also looms large over the Russia-neighbouring Baltics.
The Baltic states have been the most vocal proponents of raising Nato’s defence spending target to 2.5%.
Alongside Poland and the US, Lithuania, Latvia and Estonia usually rank high in Nato’s GDP spending charts – as does the UK, where the current Conservative government and the likely incoming Labour Party have both pledged to raise spending to 2.5% of GDP.
Transatlantic troubles
However, Rutte’s reasonable record of Trump diplomacy is unlikely to placate Nato members’ fears of the US decreasing its support for the alliance should Trump gain office in the White House come November.
A review of changing regulatory and analytical requirements of free amino acid monographs of the European Pharmacopoeia
The general challenge posed by the analysis of free amino acids is that many degrade under the high sample injector temperatures required for gas chromatography (GC) analysis. This challenge is further compounded by the fact that while high-performance liquid chromatography…
Trump stoked these fears in February, saying he would “encourage” Putin to attack any Nato member that does not meet defence spending benchmarks. President Biden described Trump’s remarks as “appalling and unhinged”.
(Source: army-technology.com)
21 Jun 24. The EU’s fresh designs for funding a defense resurgence, explained. The European Union is gearing up to boost defense spending across the continent amid the threat from Russia and fears of a wavering U.S. commitment, creating or expanding avenues for funding defense projects through EU-level institutions.
The collection of small moves aimed at steering the Brussels bureaucracy towards defense outcomes effectively erodes a longstanding taboo, as the bloc’s foundational texts were interpreted as leaving military spending entirely to member nations.
The funds newly made available for research and development and potentially for military procurement could reach into the bns of euros, according to analysts. The reshuffling of EU decision-makers through elections this year has the potential to strengthen these trends.
The watershed moment came in the form of Russia’s full-scale invasion of Ukraine in late February 2022, bringing war to the doorstep of the European project. Since then, most EU countries have increased their national defense budgets. Meanwhile, leaders in Brussels looked for ways to supplement the capitals’ efforts.
For example, the bloc leveraged its resources to set in motion a joint purchase of ammunition for Ukraine in a €500 m ($537 m) package just four days after the invasion commenced. It marked the first time in history that the EU purchased lethal weapons. Since then, Brussels has mobilized €11.1 bn ($11.9 bn) on Ukraine’s behalf.
The inanely named European Peace Facility, under which the defense-financing scheme is playing out, has emerged as a key mechanism. Formed in 2021, it’s effectively an account outside the regular books, which means it faces fewer restrictions on what it can be used for.
Meanwhile, the European Investment Bank has loosened its rules on lending for military projects. The bank provides favorable loans and technical assistance to European companies to foster home-grown innovation. Until April of this year, the bank could only fund projects that would receive more than half of their revenue from civilian uses. While the bank still won’t fund purely military initiatives, the scrapping of the fifty-percent rule, encouraged by the EU’s member states in March and then swiftly implemented, has opened the door to funding technologies that may be primarily of military use.
“Unfortunately, the war in Ukraine has made it clear that we need to reinforce Europe´s security and defense industry,” an EIB spokesperson told Defense News in an email. “As the financial arm of the EU, we must contribute to ensuring Europe’s peace and security.”
The bank’s president, Nadia Calviño, has declared defense and security a “strategic priority,” saying in February that the bank was ready to play a more active role.
More red tape was cut with the implementation of a “one-stop shop,” as she put it – a dedicated office to work with defense-related companies seeking the bank’s financial support.
While far from a replacement for national spending, the bank’s funds are significant. The EIB has set itself a target of funding €8 bn ($7.51 bn) through its Strategic European Security Initiative until the end of 2027, of which it has already disbursed €2 bn ($2.15 bn) in the program’s first two years.
The spokesperson, who asked to remain unnamed to be able to speak more freely, said that the bank’s managers expect key areas for funding through this avenue will include quantum computing, semiconductors, space, materials, biodefence, autonomous systems and sensing technologies.
Even more backing is now possible through indirect funding – equity, securitization, and guarantee products by the bank and its subsidiaries – following a revision of the rules in early May, the spokesperson added.
The EIB’s new clout in the security sphere – even if still ostensibly with the aim of developing civilian technologies – is in addition to existing EU money sources like European Defence Fund, which provides an additional €8 bn available to national governments until 2027.
On the procurement side, there has been talk about repurposing the European Stability Mechanism – created to assist struggling countries and stabilize the Eurozone – to be able to provide defense-related funding, potentially even for purchasing military equipment by Eurozone countries.
ESM Managing Director Pierre Gramegna has advocated for the idea publicly and privately. He indicated there had been considerable interest across the continent, though unanimity is needed to reform the fund.
“I have been reaching out to countries … by visiting the 20 member countries of the euro area, which are the 20 members of the ESM, to get views on how we could make the ESM in the future even more meaningful, especially in the times of external crisis,” Gramegna said at a Eurogroup meeting in March of this year.
The most notable holdout remains Italy, which calls the ESM obsolete and has blocked any recent attempts to reform it. “The point of Italy is to say we need an ESM that can be used on more occasions. Now, on one issue where we have already a solution, they are unfortunately not yet convinced,” Gramega said in an interview with NBC.
The ESM functions like an intergovernmental treaty, thereby putting it outside of the defense caveats associated with the EU budget. It is conceivable, for example, that the mechanism could dole out cheap cash for the procurement of weapons. At €422 bn ($453 bn), the lending capacity of the ESM is far greater than any EU country’s military budget.
European Commission President Ursula von der Leyen, who has been campaigning for a second term, has pledged to install for the first time a commissioner for defense following her reelection, a move that could further jolt the bloc’s defense and security muscles.
Still, some insiders believe the pace of change will be slow, and there are still differing opinions about what the defense of Ukraine means for Europe.
“Things usually only happen fast if there is a super crisis which is not the case right now,” said Manica Hauptmann, political head of the Representation of the European Commission in Berlin. “It’s super open how these discussions will develop.” (Source: Defense News)
18 Jun 24. Nato’s NSPA chief outlines procurement evolution. NSPA General Manager Stacy Cummings highlights the key role in bolstering defence capabilities and industrial capacity.
In a keynote speech, Stacy Cummings, General Manager of the NATO Support and Procurement Agency (NSPA), outlined the agency’s strategic initiatives to enhance defence capabilities and industrial capacity across Nato and the EU, emphasising multinational cooperation and support for Ukraine.
Highlighting the increasing demand for defence systems, Cummings underscored NSPA’s commitment to multinational cooperation and efficient procurement processes.
NSPA’s initiatives
“Nice to be here at such a pivotal moment in the alliance and Europe’s history. I want to talk to you about how NSPA supports nations in building national and collective defence industrial capacity,” Cummings began. She highlighted NSPA’s portfolio, which includes acquiring complex platforms such as aircraft, helicopters, and autonomous systems and providing supplies and services like fuel, ammunition, and medical equipment.
For example, on June 17th 2024, Nato launched a €600m ($642m) upgrade programme for up to 200 NH90 helicopters, marking an advancement for the platform nearing its 20-year milestone since entering service in 2007. This initiative aims to modernise the NH90 fleet used by various Nato countries.
In 2023, NSPA executed contracts worth €10.6bn, a significant increase from €4.8bn in 2022, reflecting the demand for defence activities. As a customer-funded agency operating on a no-profit, no-loss basis, NSPA emphasises transparency, an essential principle in its relationship with industry partners.
Support for Ukraine
Cummings detailed NSPA’s ongoing support for Ukraine, which has provided logistical assistance since Russia’s invasion began two years ago. “We have been providing fuel, medical equipment, vehicles, and winter clothing,” she noted. In April, NSPA hosted the first NATO-Ukraine Strategic Defence Procurement Review, which aimed to modernise Ukraine’s defence procurement processes.
Amid the global supply chain challenges, NSPA’s role in consolidating requirements and promoting interoperability has become increasingly important. “NATO nations need to address pressing challenges in the armament sector, notably increasing defence production capacity and interoperability,” Cummings stressed. She announced the operationalisation of NSPA’s new acquisition directorate, which is designed to oversee major acquisition programmes with a focus on commonality and standardisation.
Cummings also introduced the NATO Production Action Plan, established at the NATO Summit in Vilnius, to aggregate demand, address industrial challenges, and increase interoperability. “NSPA plays a pivotal role in consolidating national requirements into multi-year multinational procurement frameworks,” she explained, highlighting recent multinational contracts for ammunition worth more than €10bn.
The NATO Vilnius 2023 summit concluded with notable outcomes: Ukraine received enhanced military support from NATO members, including Germany and France, though Nato deferred setting a timeline for Ukraine’s membership until after the Russo-Ukrainian conflict concludes.
Impact and achievements
Highlighting NSPA’s procurement process, Cummings provided practical information for businesses seeking to engage with the agency. She emphasised the importance of transparency and competition, noting that all procurement opportunities are published on NSPA’s website. “Prospective bidders must be registered in the NSPA source file to be eligible for contract awards,” she added, encouraging companies from Nato and partner nations to register.
NSPA’s frameworks have proven effective in delivering savings and fostering multinational cooperation. In 2023 alone, NSPA delivered more than 233m litres of fuel, served more than 4m meals, and transported 24,000 tons of equipment. Additionally, NSPA’s airlift capabilities and temporary infrastructure projects have supported Nato missions and disaster relief efforts.
Concluding her speech, Cummings reiterated NSPA’s commitment to driving industrial capacity enhancement initiatives through multinational collaboration. “No single country can face our current global challenges alone. By pooling and sharing resources, we achieve more efficient, cost-effective solutions for defence,” she asserted. (Source: army-technology.com)
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