Additional Defence Data 2009

Date: 11.01.2011

* All EU Member States except Denmark participate in EDA.

EUROPEAN DEFENCE EXPENDITURE Macro-Economic Data

Evolution 2006 2007 2008 2009
2008-2009 % change

Total Defence Expenditure

201 Bln

204 Bln

201* Bln

194 Bln

-3,48%

Defence Expenditure as % of GDP

1,78%

1,69%

1,64*%

1,67%

+1,83%

Defence Expenditure as % of Total Government Expenditure

3,8%

3,7%

3,5%

3,3%

-5,71%

Defence Expenditure per Capita

412

417

409*

392

-4,16%

Macroeconomic Data: GDP, General Government Expenditure and Population are based on data from Eurostat. Total defence expenditure is defined as total Ministry of Defence expenditure and defence related expenditure from other sources (other Ministries special budgetary lines). * Data has been revised
2

EUROPEAN DEFENCE EXPENDITURE Macro-Economic Data

Defence Expenditure: Nominal and Real
220.000

215.000

214.506 212.070

Defence Expenditure Real Defence Expenditure

210.000

205.000

204.121 201.030

203.928 201.410

200.000

195.000

193.990

190.000

185.000

180.000

2006
Data for 2008 has been revised

2007

2008

2009
3

2006, 2007 and 2008 have been inflated to 2009 economic conditions

EUROPEAN DEFENCE EXPENDITURE Macro-Economic Data

Defence Expenditure as a % of GDP and as a % of Government Expenditure
4,0% 3,5%

3,78%

3,69% 3,52*% 3,31%

3,0% 2,5% 2,0% 1,5% 1,0% 0,5% 0,0% 2006

* Data has been revised 4

1,78%

1,69%

1,64*% 1,67%

Defence Expenditure as % of Government Expenditure Defence Expenditure as % of GDP

2007

2008

2009

EUROPEAN DEFENCE EXPENDITURE Reform

Evolution 2006 2007 2008 2009
2008-2009 % change

Military Personnel

1.940.112 1.836.882

1.800.707

1.668.537

-7,34%

Civilian Personnel

484.827

457.392

433.780

426.335

-1,7%

Defence Spend per Soldier

103.602 111.117

111.845* 116.264

+4,0%

Investment per Soldier

(Equipment Procurement and R&D)

20.002

22.795

23.274

24.522

+5,36%

Military Personnel: Authorised strengths of all active military personnel on 31 December of each year; includes all personnel in uniform who can operate under military command and can be deployed outside national territory. Civilian Personnel: The authorised strength of all civilian personnel on 31 December of each year employed by all military establishments and beenarmed the revised * Data has forces.

EUROPEAN DEFENCE EXPENDITURE Reform

250000

Real Defence Expenditure Increase: 2008-2009

-4,9%

200000

Total 2008: 204 bn Total 2009: 194 bn

.. ..

2008

2009

Contribution to Total Variation Growth per Item (Figures in real terms) 103,92% -9,5%

150000

100000

15,26% 50000 4,64% -7,9% 0 -3,6% 11,72% -3,5%

-2,70% 0,6% 3,54% -4,0% -21,11% 2,54% -10,0% 69,2%

2008 has been inflated to 2009 economic conditions

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EUROPEAN DEFENCE EXPENDITURE Reform

Breakdown of Defence Expenditure
Personnel Expenditure Defence Equipment Infrastructure/Construction Expenditure Operation and Maintenance Defence R&D Other Spend

100% 90% 80% 70%

1,4% 2,8% 4,8% 14,5%

1,3% 3,0% 4,7% 15,8%

1,6% 2,9% 4,3% 16,5%

2,6% 2,8% 4,3% 16,8%

21,4% 60% 50% 40% 30% 20% 10% 0% 2006

* Data has been revised

23,1%

21,5%

22,8%

55,0%

52,0%

53,2%

50,7%

2007

2008*

2009

EUROPEAN DEFENCE EXPENDITURE Reform

Evolution 2006 2007 2008 2009
2008-2009 % change

Personnel Investment
(Equipment Procurement and R&D)

110 Bln

106 Bln

107 Bln *

98 Bln

-8,41%

38,8 Bln

41,8 Bln

41,9 Bln

40,9 Bln

-2,39%

Operation and Maintenance

43,3Bln

47,0 Bln

43,3 Bln

44,2 Bln

+2,10%

Other
(Includes Infrastructure)

8,9 Bln

9,2 Bln

8,9 Bln *

10,5 Bln

+17,98%

Personnel Expenditure: all personnel-related expenditure for military and civilian personnel, including from non-MoD sources. Operation and Maintenance (O&M) expenditure: covers O&M (spare parts and supplies) of major equipment; other equipment and supplies; and costs related to maintaining utilities and infrastructure.
* Data has been revised 8

EUROPEAN DEFENCE EXPENDITURE Reform

Overall Capital Investment Breakdown
Infrastructure 100% 90% 80% 21,8% 70% 60% 50% 40% 30% 20% 10% 0% 2006 2007 2008 2009
Equipment Procurement expenditure includes expenditure for all major equipment categories, that are not included in O&M spending. Research and Development (R&D) expenditure: any R&D programmes up to the point where expenditure for production of equipment starts to be incurred. Infrastructure: construction of fixed military installations, including countrys share in multinationally funded military construction/infrastructure.
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R&D

Procurement

12,7%

12,9%

12,1%

11,6%

19,9%

18,1%

18,1%

65,6%

67,2%

69,8%

70,2%

EUROPEAN DEFENCE EXPENDITURE Reform

Overall Capital Investment Breakdown
2008-2009 % change

Evolution

2006

2007

2008

2009

Infrastructure

5,6 Bln

6,2 Bln

5,8 Bln

5,4 Bln

-6,90%

Equipment Procurement

29,1 Bln

32,3 Bln

33,3 Bln

32,5 Bln

-2,40%

R&D

9,7 Bln

9,6 Bln

8,6 Bln

8,4 Bln

-2,3%

R&T (Subset of R&D)

2,7 Bln

2,5 Bln

2,5 Bln

2,3 Bln

-8,0%

Research and Technology (R&T) expenditure: Subset of R&D expenditure for basic research, applied research and technology demonstration for defence purposes.

10

EUROPEAN DEFENCE EXPENDITURE Reform

Outsourcing Breakdown
O&M Outsourced 100% 11,4% * 90% 80% 4,2% 70% 60% 50% 40% 73,0% 30% 20% 10% 0% 2006
* Data has been revised

Capital Investment Outsourced

Other Outsourcing 1,8%

22,8%

19,4% 10,4% * 5,9%

10,1%

88,1% 74,7% 78,2% *

2007

2008

2009
11

EUROPEAN DEFENCE EXPENDITURE Reform

Evolution 2006 2007 2008 2009
2008-2009 % change

Outsourcing

14,1 Bln

14,4 Bln

12,0 Bln

14,1 Bln

+17,5%

O&M Outsourced

10,2 Bln

10,8 Bln

9,4 Bln

12,4 Bln

+31,91%

Capital Investment Outsourced

1,3 Bln

1,7 Bln

1,3 Bln

1,4 Bln

+7,7%

Operation Costs

6,6 Bln

8,6 Bln

9,7 Bln

9,8 Bln

+1,03%

Outsourcing: is defence expenditure for which services have been contracted at the central level with service suppliers from outside the MoD and/or Armed Forces.
12

EUROPEAN DEFENCE EXPENDITURE Collaboration

Evolution 2006 2007 2008 2009
2008-2009 % change

Collaborative Defence Equipment Procurement

6.663 Mln

6.846 Mln

8.072 Mln

8.233 Mln

+2%

European Collaborative Defence Equipment Procurement European Collaborative Defence Equipment Procurement out of Total Procurement European Collaboration out of Collaborative Procurement

6.078 Mln

6.107 Mln

7.068 Mln

7.144 Mln

+1,07%

20,9%

18,9%

21,2%

22,0%

+3,77%

91%

89%

88% *

87%

-1,14%

Collaboration: Agreement by at least two Ministries of Defence for project or programme contracts. European Collaboration: subset of Collaboration; agreement by at least two EU Member States Ministries of Defence for project or programme contracts. Possible nonEU partners share in such contracts is lower than 50%.

13

EUROPEAN DEFENCE EXPENDITURE Collaboration

Evolution 2006 2007 2008 2009 2008-2009 change

Collaborative R&T

385 Mln

377 Mln

452* Mln

322 Mln

-28,76%

European Collaborative R&T

254 Mln

332 Mln

412* Mln

290 Mln

-29,61%

European Collaborative R&T out of Total R&T

9,6%

13,1%

16,6*%

12,8%

-22,89%

European Collaborative R&T out of Collaborative R&T

65,9%

88,0%

91,2%

90,1%

-1,21%

* Data has been revised

14

EUROPEAN DEFENCE EXPENDITURE Deployability

Deployability Breakdown
500.000
464.574

450.000 400.000 350.000 300.000 250.000 200.000 150.000 100.000 50.000 0

426.704

444.681 443.108

Number of Deployable Land Forces Total Number of Sustainable Land Forces Average Number of Troops Deployed

100.867 83.300

110.482

125.237 106.754 80.177

77.900

67.767

2006

2007

2008

2009

Average number of troops deployed = Average number of troops deployed throughout the year by all EDA Participating Member States (All forces) Deployable (Land) Forces = (Land) Forces troops prepared for deployed operations (the NATO 50% target). Sustainable (Land) Forces = (Land) Forces troops undertaking or planned for sustained operations (the NATO 10% target).

15

EUROPEAN DEFENCE EXPENDITURE Deployability

Evolution 2006 2007 2008 2009
2008-2009 % change

Average number of troops deployed

83.300

77.900

80.177

67.767

-15,48%

Deployable (Land) Forces

426.700

444.700

464.574 443.108

-4,62%

Sustainable (Land) Forces

100.900

110.482

125.237 106.754

-14,76%

Average Number of troops deployed out of Military Personnel

5,0%

4,3%

4,5%

4,1%

-8,89%

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