Euro-zone, states would have to drastically cut grossly inflated public sector spending.A new generation of European leadership is leading the charge, particularlyPresident Nicolas Sarkozy of France and Prime Minister David Cameron of GreatBritain, who are attempting to narrow the scope of domestic governance with drastic pension reforms and other significant austerity measures. Mr. Cameron initiallyrecommended budget cuts of up to 25% for almost all domestic ministries.
This will cause serious stress to European defense budgets at a time whenBrussels is attempting to assert itself in the global arena. For the last decade, Europe hasalready been trimming the fat from its militaries. According to the European DefenseAgency, between 2007 and 2008, the EU saw further reductions in spending on militaryand civilian defense personnel, as civilian numbers were reduced an additional 5.2%,and military personnel another 2%.
These numbers preface the collapse of America¶sfinancial sector in 2008 and the subsequent European debt crisis of 2009 and 2010.
With significant bloc-wide cuts made to European navies, whatever shape EU military power takes on in the next several years, it will largely consist of land forces and air transport. In order to keep its substantial clout in the global arena, the EU will have touse all of its institutional strength to convince member states to make sound decisions ondefense policy.Although the Lisbon Treaty called for Europe to expand its role in the world, andcreated institutional infrastructure for it to do so, the financial recovery represents an
Liam Fox, ³Defence cuts: Liam Fox¶s leaked letter in full,´
The Telegraph UK
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Werner Roeger and Jan in µt Veld, ³Fiscal stimulus and exit strategies in the EU: a model-basedanalysis,´
European Commission, Directorate-General,
November 6, 2010, accessed November 18