Nato Funding Agreement

“Common funding will focus on putting in place requirements that go beyond those that could reasonably be expected to be provided by national funds.” BRUSSELS (Reuters) – NATO allies are joining an agreement to contribute more to allies` operating costs to reduce the U.S. share of funding, three diplomats familiar with the matter said. In an obvious attempt to allay Mr. Trump`s concerns about how much the United States is paying, NATO announced in late November that it had agreed to reduce the U.S. government`s contribution to the direct budget. Under the new agreement, Germany and the United States will also pay 16% of NATO`s central budget, while the United States has already contributed 22% (more than any other member). When the budget is approved, the head of the NATO body has room for discretion to implement it through commitment and budgetary expenditure for approved purposes. This discretion is limited by different restrictions under the Organization`s financial rules on issues such as the use of tenders for goods and services supply contracts or the transfer of credits to correct overestimates or underestimations of necessary resources. The Russian intervention in Crimea in 2014 led to a harsh condemnation on the part of NATO countries and the creation of a new “spearhead” of 5,000 soldiers at bases in Estonia, Lithuania, Latvia, Poland, Romania and Bulgaria. [25] At the next summit in Wales in 2014, NATO heads of state and government made their first official commitment to spend at least 2% of their gross domestic product on defence by 2024, which until now had only been an informal guideline. [26] NATO has not condemned the 2016 purges in Turkey. [27] NATO members opposed the UN Non-Proliferation Treaty, a binding agreement on the complete elimination of nuclear weapons negotiations, supported by more than 120 nations. [28] Direct financial contributions to NATO are mainly made in two different forms: common funding and joint funding.

They can also take the form of trust funds, in-kind donations, ad hoc sharing agreements and donations. Today, the volume of U.S. defence spending accounts for more than two-thirds of the Alliance`s total defence spending. This is not the amount that the United States contributes to NATO`s operational management as an organization, including its headquarters in Brussels and its junior military commands (see table of joint funding agreements for 2020 below). In addition, the U.S. defence budget covers commitments outside the Euro-Atlantic area. It should be noted, however, that the Alliance relies on the United States to provide some essential intelligence, surveillance and information skills; air and air refuelling; ballistic missile defence; and electronic warfare in the air.

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