Premium Essay

The Economic Crisis and Its Impact on Defense

In:

Submitted By skouloukos2
Words 873
Pages 4
THE ECONOMIC CRISIS AND ITS IMPACT ON EUROPEAN AND CYPRUS DEFENSE
By Dr Aristos Aristotelous

The relentless question of prioritizing and allocating scarce national resources to unlimited uses and requirements becomes even harder in times of economic crisis. In Cyprus - as in other EU countries - the tragic state of the economy and the need to exit from the crisis, brings unbearable pressure on military spending and is impacting on priorities in the defense field.
Europe
Under the burden of financial constraints and the need to protect or further enhance the welfare state, the defense sector in many European countries - especially after the end of the Cold War - was usually targeted for cuts, so as not to deprive other sectors from these funds.
Today, with the neoliberal ideas of restricting or even terminating the welfare state, and in light of the crisis in Europe, the cuts are extended more drastically than before in other fields of government expenditure. However the defense sector still is for the governments and the European publics a much preferable area than pensions, health education, etc., for such cuts.
Between 2009 - 2012, defense spending among NATO countries as a whole fell by $ 56 bn. Also among the countries of Europe in general, defense spending fell from $ 303.1 bn in 2011 to $ 280.1 bn in 2012 (IISS). Notable reductions were those of big countries like Germany, from $ 48.1bn to $ 40.3 bn and France from $ 53.4 bn to $ 48.1 bn. In those troubled economies at the South like Italy, defense spending was reduced from $ 30.2 bn to $ 23.6 bn., in Spain, from $ 13.9 bn to $ 11.7 bn and in Portugal from $ 3.6 bn to $ 2.5 bn. Under the circumstances, the prolonged critical financial situation in Europe, suggests that it will continue to be an extremely remote possibility for European allies in NATO and the EU to fulfill collective defense policy

Similar Documents

Premium Essay

Israel Macro Analysis

...Sl No | Particulars | Pages | 1 | Introduction | 2-3 | 2 | Macro-Economic Analysis | 4-7 | 3 | Factors affecting Israel and their solution | 8-10 | 4 | Bibliography | 11 | Sl No | Particulars | Pages | 1 | Introduction | 2-3 | 2 | Macro-Economic Analysis | 4-7 | 3 | Factors affecting Israel and their solution | 8-10 | 4 | Bibliography | 11 | TABLE OF CONTENTS TABLE OF CONTENTS Submission by – Group 5 Yashwant Kasturi – 49B Srinivas Gadepalli – 42B Shasank S Jalan – 37B Saurabh Malik – 34B Saurabh Kumar – 35B Submission by – Group 5 Yashwant Kasturi – 49B Srinivas Gadepalli – 42B Shasank S Jalan – 37B Saurabh Malik – 34B Saurabh Kumar – 35B Macro-Economic review of Israel Macro-Economic review of Israel Economic Backdrop In the last decade, Israel has secured * Strong growth—averaging 3.8 percent * Inflation in the 1–3 percent range * Public debt falling below 80 percent of GDP * Budget deficits declining into the 1–3 percent range * Freely floating and competitive Shekel (Israeli Currency) The economy was open and flexible—reflected in * Exports of around 40 percent of GDP * Stable Property markets (capped by earlier supply overhangs) * Highly activist and effective Financial—and especially banking—supervisory structures The Israeli economy is a diverse open market economy. Being a relatively young state in the modern era, Israel is recognized as a developed market by many major indices...

Words: 4362 - Pages: 18

Free Essay

Economics for the Global Manager

...Economics for the Global Manager BUS610 AIU Abstract This paper will discuss Boeing’s global operations as it pertains to its activities outside the U.S. It will identify the economic concepts that apply to this firm and how the concepts can be used to address the firm’s problems and opportunities. It will identify the economic and political policies that affect this firm and how the policies impact business decisions. It will discuss how the firm uses technology for strategic advantages and the impact of globalization for the firm.   Economics for the Global Manager Introduction The world’s largest; Boeing is an aerospace company that leads the manufacturing of commercial jetliners. Boeing also has manufacturer defense, space, and security systems (About Us, 2013). Boeing’s global operations have supply and manufacturer activities outside the U.S. (Backgrounder, 2013). The economic concepts that apply to this firm are manufacturing of commercial jetliners as well as defense, space, and security systems and these concepts can be used to address the firm’s problems and opportunities (About Us, 2013). The economic and political policies that affect this firm are economic growth and political turmoil and these policies impact business decisions (Long-Term Market, 2013). The firm uses technology for strategic advantages by ¬making plans in its research and development investments to maximize potential returns and the impact of globalization for the firm (Arkell, 2005)...

Words: 939 - Pages: 4

Premium Essay

Immigration Pros And Cons Essay

...Even with the strong support from the military, the bill failed. Senator Durbin was eager to see his bill pass so he teamed up with Republicans Richard Lugar and Mel Martinez and introduced the bill as part of another one, which aimed to repeal the “Don’t Ask Don’t Tell” policy and would be attached to the National Defense Act for 2010. The Defense Authorization Bill surprisingly failed and mainly pointed at the fact the Dream Act was part of it. In 2010, Senator Durbin once again presented the bill without any Republican support. The bill was able to pass the House, but the Senate purposely postponed the vote to distract attention from it and see its support fade (Harvard Journal on Legislation,...

Words: 1061 - Pages: 5

Free Essay

Leadership

...INTRODUCTION On September 11, 2001, 19 militants associated with the al-Qaeda group hijacked four airlines and carried out suicide attacks against targets in the United States. Two of the planes were flown into the towers of the World Trade Center in New York City, a third plane hit the Pentagon just outside the Washington D.C., and the fourth plane crashed in a field in Pennsylvania. The attacks resulted in extensive death and destruction, triggering major US initiatives to combat terrorism and defining the presidency of George W. Bush. Over 3,000 people were killed during this attack including more than 400 police officers and firefighters. LITERATURE REVIEW From the previous studies conducted by the researchers from various countries, the findings showed that: A. Direct losses: i. Human lives ii. Property costs iii. Emergency response and clean-up costs iv. Heath effects v. Temporary housing B. Indirect loses: i. Lost employee income from firms that closed or were cut back ii. Lost employee income from firms that were dependent on firms that were closed or cut back iii. Lost expenditures iv. Lost tax revenues C. Costs of losses: i. Property clean-up, rescue and policing- $14 billion ii. Disabilities and trauma- $3 billion iii. Business interruption/ Training/ Liability losses- $21 billion iv. Lost wages- $ 9.6 billion D. Raising of transactions costs: i. Higher operating costs: Businesses experience...

Words: 1492 - Pages: 6

Premium Essay

Mktg 205 – Principles of Marketing

...Abstract This paper is about marketing the service of self defense training. It will identify, describe, and analyze three marketing environment forces that will impact this service. Strategies to overcome the threats and capitalize on opportunities will also be explored throughout the paper. Self Defense Training and Marketing Forces Introduction These are the impacts of marketing forces on the training services industry. There are so many components involved with marking to make the product or service successful. Identifying the market forces that impact the service is the most important component. There are three forces that impact the training service industry. With self defense training these three forces are social, economy, and competition. Strategies to overcome the threats and capitalize on opportunities will also be discusses for a better understanding of this industry and service. Market Force 1: Description and Analysis of impact on product/service The social force is thought of to focus on buying trends of the population due to the populations values (Kerin, 2013). These forces are the factors that influence what services, at the time, are in the highest demand. They impact the want and need for self defense training because it shows when, who, and why the population is seeking this type of training. With this service it is best to a multicultural marketing method because anyone could be in need for self defense training. Although, women located in bad areas of crime...

Words: 1355 - Pages: 6

Free Essay

Zara

...CRISIS MANAGEMENT Competitive intelligence: It’s the process of ethically, collecting, analyzing, and disseminating accurate, relevant, specific, timely, foresighted and actionable intelligence regarding the implications of business environment, competitors and the organization itself. SCIP – Strategic and Competitive Intelligence Professionals 3 main axes: 1. An ability to procure accurate and validates information to decision makers, project managers and even project team members 2. A capacity to produce specific studies and assessment describing a situation, the effect/cause of an event, the action/strategy of an actor 3. A mission consisting in delivering alerts and warnings to decision makers CI and crisis “ Lack of transparency can mean the management doesn’t see or doesn’t want to see important, vital competitive information. At time, this can lead to crisis.” Leonard M. FULD The secret language of competitive intelligence DEFINITION * BRUTAL,SUDDEN AND TRAUMATIC EVENT * Effect of surprise * Low probability (which make prevention difficult) * Considerable stakes (even the survival of the organization) * COMPLEX SITUATIONS WITH UNCERTAIN OUTCOMES * AN EXCEPTIONAL SITUATION REQUIRING “EXTRA-ORDINARY” MEASURES * Major impact * Fast reaction is imperative GOALS * You have to preserve your company’s activity, employees and assets, but not by any means * Laws...

Words: 502 - Pages: 3

Premium Essay

Criminal Justice Process

...National Guardsmen to deal with any civil uprising. Since May 4, 1970 at Kent State until now in 2011 the United States has change the way they handle things related to civil order control. Civil order control means more than just violent crimes it can also mean disasters, national emergencies and it also deals with crowed events like protest like they are having on Wall Street now. They can still call out the National Guards and Arm Forces along with ATF, DEA FBI, and U.S Marshals’ to help handle things. They also have medical professional ready to help out in these emergencies’ if they are needed. They also have the Federal Emergency Management Agency which developed a strategy call Project Impact in which was to be fully implemented in 2010.For project impact to be successful here are a few key elements it needs. The Mitigation Action Plan is as follows: “Federal agencies are expected to apply the best...

Words: 1989 - Pages: 8

Free Essay

Fiscal Policy Paper

...Fiscal Policy ECO/372 June 1, 2015 Alan Beideck Fiscal Policy The United States deficit, surplus, and debt influences the economy in a number of ways, and it creates an impact on taxpayers, social security and Medicare users, unemployed workers, and students. These issues also affect the countries financial reputation, exports, imports and the Gross Domestic Product (GDP). The U.S. economy is experiencing a budget deficit and outstanding debt, and the outlook is not good for taxpayers. If these two items do not get under control, future generations will be left to pick up the pieces and will have to try to find a way to maintain and control the budget. Taxpayers Taxpayers are the people that pay and contribute to state revenue. Government deficits affect taxpayers by increasing taxes and interest. "Inflation also affects the deficits by affecting the size of social security payments, federal pension payments, and interest on the federal debt. The deficit and surplus are sensitive to the business cycle" (Deficits, Surpluses, And Debt, 2015). "If the government use surplus it would "give tax cuts to taxpayers, increase income transfers, pay down national debt and spend it on goods and services" (Deficits, Surpluses, And Debt, 2015). Future Social Security and Medicare users The Social Security program began in 1935 and benefits have always been paid on time, even with modified laws over the years. Benefits are expected to continue to be paid on time through...

Words: 1227 - Pages: 5

Premium Essay

Cyber Security Act

...Please send your valuable comments/feedback by 15 May 2011 to Dr Gulshan Rai, Director General, CERT-In, at the at the above address or on email id ‘grai@mit.gov.in’ Discussion draft Department Of Information Technology National Cyber Security Policy “For secure computing environment and adequate trust & confidence in electronic transactions ” Contents 1.0 Security of Cyber Space – Strategic perspective 1.1 IT as an engine for economic growth and prosperity 1.2 Security of cyber space - Need for action 1.3 Target audience 1.4 Securing cyber space – Key policy considerations 2.0 Cyber space – Nature of threat 2.1 Threat landscape 2.2 International cooperation 2.3 Securing cyber space – Scope of action 2.3.1 Cyber security and cyber defense 2.3.2 Cyber intelligence and cyber defense 2.4 Priorities for action 2.5 Partnership and collaborative efforts 3.0 Enabling processes 3.1 Security threat and vulnerability management 3.2 Security threat early warning and response 3.3 Security best practices - compliance and assurance 3.4 Security crisis management plan for countering cyber attacks and cyber terrorism 3.5 Security legal framework and law enforcement 3.6 Security information sharing and cooperation 4.0 Enabling technologies – Deployment and R&D 4.1 Deployment of technical measures 4.2 Security research and development 5.0 Enabling people 5.1 Security education and awareness 5.2 Security skills training and certification 5.3 Security training infrastructure 6.0 Responsible...

Words: 7888 - Pages: 32

Free Essay

Medical Malpractice

...companies. Their argument is that too many frivolous lawsuits lead to high malpractice insurance, the increasing cost of medical care and a burden on the taxpayers whose tax dollars absorb the extravagant litigation costs for these claims. They believe doctors will eventually be unable to practice medicine due to costly malpractice insurance premiums which may leave many Americans unable to obtain much-needed healthcare. In the past, as the rate of malpractice suits began to grow, so did the rate of malpractice insurance. This ended up having a dire impact on the medical profession. For one thing, many qualified doctors ended up leaving their practices and focusing more on preventative medicine. In other words, they felt compelled to order up costly tests, many of which that were not necessary, in an attempt to stave off lawsuits claiming misdiagnoses. The impact on the medical industry as a whole, raises the cost of medicine and insurance premiums for everyone. However, according to Stephen Daniels, attorneys also pay for malpractice insurance and therefore understand the...

Words: 3268 - Pages: 14

Free Essay

Canvas

...The Secession of Crimea The crisis in Ukraine has been long cooking since 2004 and the Orange Revolution (1). Since then, there has been a strong opposition to pro-Russian supporters. The situation in the country was relatively calm until 2010, when President Yanukovich won elections and his rival candidate, Yulia Timoshenko, was arrested. In November 2013 the protests started gaining velocity, violent conflicts erupted and opposition blew up in Kiev, responding to Yanukovich’s new agreement on working closer with Russia, whilst stopping negotiations with the European Union. The conflicts did not reach the Crimean peninsula, nevertheless the Crimean Parliament, which is granted limited autonomy, asked Russia to protect them. Crimea has been part of the Ukrainian state –or formerly the Ukrainian Soviet Socialist Republic- since 1954 and provides great strategic value, since the Black Sea ports of Crimea offer unproblematic access to the Eastern Mediterranean Sea. Crimea has been the base of the Russian Black Sea Fleet for several decades and is therefore of great importance to Russian military strategy. For the Russian Federation, the base in Sevastopol is the only access into international waters, since the northern ports in e.g. Siberia are subject to freezing. According to the State Statistics Committee of Ukraine, the population is composed of 58.5% ethic Russians, 24.4% Ukrainians and 12.1% Crimean Tartars among others, amounting to a total population of approximately...

Words: 2091 - Pages: 9

Premium Essay

Global Financial Crisis

...Financial Crisis: impacts, solutions and predictions in GCC countries. Since the end of 2007 and the beginning of 2008, the world has been suffering from the global financial crisis. It is believed to be the worst financial crisis in 60 years at least since the Great Depression in 1930s, due to the speed, scope, and scale of its impact. The huge difference distinguishes the contemporary crisis from the others is that the other crises were concerned with economic inflation and the current one is concerned with economic deflation. The global financial crisis has started in America, then crossed the Atlantic before going global. It began in the mortgage markets of the United States and erupted through financial markets (Savona, Kirton, Oldani 3). Many factors have contributed to the economy's recession, where signs of housing bubble problem were seen at the end of 2007. Caused by low interest rates beginning on January 3, 2001, and ignored by regulatory agencies, Americans borrowed excessively for home mortgages and this phase lasted to 2004. After that, from June 30, 2004, interest rates started to rise which led to the mortgage being unbearable and eventually subprime. This phase was marked by the increasing foreclosures and it extended from 2005 to 2007. This lead us to the conclusion that global financial crisis occurred due to easy monetary policies along with tax cuts and to failure of regulatory arrangements (Desai 1-3). This was the origin of the global financial crisis in the...

Words: 2243 - Pages: 9

Premium Essay

The Eu

...Service 7-5700 www.crs.gov RS21372 CRS Report for Congress Prepared for Members and Committees of Congress The European Union: Questions and Answers Summary The European Union (EU) is a political and economic partnership that represents a unique form of cooperation among sovereign countries. The Union is the latest stage in a process of integration begun after World War II, initially by six Western European countries, to foster interdependence and make another war in Europe unthinkable. Today, the EU is composed of 27 member states, including most of the countries of Central and Eastern Europe, and has helped to promote peace, stability, and economic prosperity throughout the European continent. The EU has been built through a series of binding treaties, and over the years, EU member states have sought to harmonize laws and adopt common policies on an increasing number of economic, social, and political issues. EU member states share a customs union, a single market in which goods, people, and capital move freely, a common trade policy, and a common agricultural policy. Seventeen EU member states use a common currency (the euro). In addition, the EU has been developing a Common Foreign and Security Policy (CFSP), which includes a Common Security and Defense Policy (CSDP), and pursuing cooperation in the area of Justice and Home Affairs (JHA) to forge common internal security measures. EU member states work together through common institutions to set policy and to promote...

Words: 8592 - Pages: 35

Free Essay

Military Complex

...Complex is a phrase used to signify the relationship between government forces and defense-minded organizations. This union can produce benefits for both war planners receiving the tools necessary for waging an effective war while furthering political interest abroad while defense contractors are the recipients of lucrative deals.("What is military,") The term Military Industrial Complex was coined by President Dwight D. Eisenhower in his farewell address in 1961. Great and sustained spending for defense and war he warned created powerful groups that could disastrously harm the nations future.(Turse, 03) Causing harm is exactly what they did. Third World countries would receive the assistance of developed countries with the financing of its wars and in return would have to grant certain privileges to the countries that aided them. Oftentimes giving over control of rich soil, marine ports and even governments. After many years these countries would have to negotiate for the rights of their own land. For example, the United States was able to gain control over the Philippine Islands, Guam and Puerto Rico after the Spanish-American war. America then placed military bases the aforementioned countries. Developing countries are the main recipients of the arms sales. Developing nations continue to be the primary focus of foreign arms sales activity by weapons suppliers. In spite of our global economic climate major purchases are continuously being made by a select few developing nations...

Words: 436 - Pages: 2

Free Essay

2009-Report to Congress of the Us-China E and S Review Commission

...2009 REPORT TO CONGRESS of the U.S.-CHINA ECONOMIC AND SECURITY REVIEW COMMISSION ONE HUNDRED ELEVENTH CONGRESS FIRST SESSION NOVEMBER 2009 Printed for the use of the U.S.-China Economic and Security Review Commission Available via the World Wide Web: http://www.uscc.gov dkrause on GSDDPC29 with K1 VerDate Nov 24 2008 08:23 Nov 10, 2009 Jkt 052771 PO 00000 Frm 00003 Fmt 6012 Sfmt 6602 M:\USCC\2009\52771.XXX APPS06 PsN: 52771 M:\USCC\USChina.eps Report Documentation Page Form Approved OMB No. 0704-0188 Public reporting burden for the collection of information is estimated to average 1 hour per response, including the time for reviewing instructions, searching existing data sources, gathering and maintaining the data needed, and completing and reviewing the collection of information. Send comments regarding this burden estimate or any other aspect of this collection of information, including suggestions for reducing this burden, to Washington Headquarters Services, Directorate for Information Operations and Reports, 1215 Jefferson Davis Highway, Suite 1204, Arlington VA 22202-4302. Respondents should be aware that notwithstanding any other provision of law, no person shall be subject to a penalty for failing to comply with a collection of information if it does not display a currently valid OMB control number. 1. REPORT DATE 3. DATES COVERED 2. REPORT TYPE 01 NOV 2009 4. TITLE AND SUBTITLE 00-00-2009 to 00-00-2009 ...

Words: 185166 - Pages: 741