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STRATFOR.COM Global Intelligence Update
24 March 2000


German Military Weakness Complicates European Security Futures

Summary

Falling in line with a popular sentiment against increased military
spending, all mainstream German political parties except one favor
significant cuts in the size of the German Armed Forces. Even the
conservative Christian Democrats, in a position paper released
March 21 on the future of the German Armed Forces, favors cutting
its overall size. Reduced German military effectiveness will have
significant implications for the future of NATO, its ability to
defend new and potential members in the east, as well as the
proposed European Defense and Security Identity.

Analysis

Fears that a resurgent Germany will become a dominant military
force in Europe are misplaced. It is more likely Germany's military
will shrink relative to its population and GDP. A position paper on
the future of the German Armed Forces, the Bundeswehr, authored by
the conservative Christian Democrats (CDU), favored cutting the
overall size of the force to 300,000 from its current level of
almost 340,000. Support for the German military continues to wane
among the German population as cuts in social spending are matched
- or even exceeded - by cuts in military spending.

Germany is now set on a course where its defensively organized
forces will rapidly lose military effectiveness and the capability
for forward deployments. This will have serious implications for
both NATO and any planned European Defense and Security Identity
(EDSI). Most of all, it will complicate the security picture for
Germany's eastern neighbors - particularly Poland and the Baltics -
which are counting on the ability of the Bundeswehr to defend them
from potential Russian threats.

Germany's politicians are having a tough time convincing voters to
continue spending billions to modernize the German military while
they make cuts in social benefits. The CDU leadership's proposal
favoring military reduction reflects this popular sentiment. Now,
all mainstream German political parties except the Christian Social
Union (CSU) favor significant cuts in the size of the Bundeswehr.
The Greens' recommendation is the most severe, calling for German
armed forces of between 200,000 and 240,000 and an end to
compulsory military service.

Since the end of the Cold War, it has become extremely difficult
for Germany to justify defense outlays against obvious Russian
weakness. Instead, Germans continued to emphasize commercial
opportunities in Russia and the rest of Eastern Europe. This policy
was even more eagerly embraced with the decreased Russian threat
after the fall of the Berlin Wall.

To reassure the Russians and other neighbors after German
reunification, German armed forces were cut to 350,000. In 1992,
France - with two-thirds of Germany's GDP - surpassed Germany in
defense spending. In 1999, France spent $15.8 billion more than
Germany on its military.

The Social Democrat (SPD) and Green government that came into power
in 1998 continued to focus on Germany's trade relations with the
East. The Greens, many of whom led 1980s anti-NATO protests, are
pacifist in nature and have always opposed the military. And while
the SPD leadership is generally more hawkish, strong pacifist
elements exist within the party ranks.

Current government plans call for a reduction in defense spending
from its 1999 level of $23.5 billion to $21.5 billion by 2003. Even
before this reduction, Germany spends - as a percentage of GDP -
less on its military than Hungary, Poland or the Czech Republic.
While the opposition CDU proposal does envision higher defense
spending - at $24.8 billion - than current government levels, it is
still significantly lower than Germany's 1998 defense spending of
$28.8 billion and half of what Germany spent as recently at 1992.

U.S. Secretary of Defense William Cohen, in January 2000, strongly
criticized Germany for reducing its military forces. He said
Germany set a bad example for new NATO members. In response, German
Defense Minister Rudolf Scharping said it was difficult to spare
defense spending while Germany's government was cutting programs
across the board. In Germany, the Finance Ministry and not the
Defense Ministry is dictating defense outlays - cuts that Scharping
has been powerless to resist.

But Germany's eastern neighbors - particularly new NATO member
Poland and NATO aspirants in the Baltic states - are looking to
Germany to provide much of their defense capability. The loss of
which leaves these countries in an uncomfortable position vis-a-vis
the Russians. An improperly equipped 225,000-man German armed force
will be hard-pressed to face a resurgent Russian threat - even if
the political will could be summoned to forward-deploy German
forces.

Poland and the Baltic states are left with two uncomfortable
options: a rapid military build-up or a moderation of their
policies toward Russia. Increasing their military forces is
economically unviable and will certainly antagonize the Russians. A
more conciliatory stance toward Russia will be needed until either
Germany re-evaluates its military situation - a long-term hope - or
it receives a major commitment from the United States - an unlikely
event.

Countries hoping that Germany will take a military leadership role,
particularly in Eastern Europe, will be disappointed. Instead,
Germany will continue to pursue its policy of conciliation with
Russia and will resist moves within Europe that may antagonize
Moscow. In addition, Germany will have trouble meeting its
obligations to any new European Security Force, whose leadership
will then fall to the French or the British. While the French will
be attracted to a militarily weak Germany, the additional military
burden being placed on their own armed forces could be severe and
this - more than any political considerations - could spell real
trouble for the future of EDSI.






(c) 2000, Stratfor, Inc. http://www.stratfor.com/



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