Editor's Foreword

118 ThE MiliTary BalancE 2010
2009, the military leadership signed a letter to the
defence minister complaining about the national
defence budget, which at only 0.7% of GDP is the
lowest in Europe by this measure. The letter pointed
out that regular promises to increase the budget to at
least 1% of GDP have been ignored, leaving the military
with a shortfall of around €300m (US$448m) a
year. The letter also criticised the country’s acquisition
of Eurofighter Typhoon, claiming that promises
made in 2002 when the procurement was agreed
that the core defence budget would not be affected
had been broken. At the time of the deal the Ministry
of Defence was told that if Typhoon operating
costs exceeded €50m (US$75m) a year it would be
compensated. In 2008 total spending on the Typhoons
reached €276m (US$412m), but despite his protestations
the defence minister was unable to secure extra
funds for the military and was forced to announce
the postponement of a number of key procurement
programmes. The most immediate casualty was
the €200m (US$298.5m) programme to acquire 145
Dingo armoured patrol vehicles; also ‘postponed
to later budgets’ were the replacement of Austria’s
40-year-old Saab jet trainers and the upgrading of
23 Agusta-Bell 212 helicopters. In announcing the
delays, the minister said they would release around
€70m (US$104.5m) for the renovation and construction
of new barracks.