Defence Data 2010 booklet

EDA

European Defence Agency

2010 DEFENCE DATA

ISBN 978-92-95075-02-3 ISSN 1831-9513 doi:10.2836 / 12485 © European Defence Agency, 2011 Printed in Belgium For reproductionor use of this material, permission must be sought directly from the copyright holder: European Defence Agency Rue des Drapiers 17-23 B-1050 Brussels (Belgium) Fax: +32 (0)2 504 2845 E-Mail: info@eda.europa.eu Web: www.eda.europa.eu

Introduction The European Defence Agency collects defence data on an annual basis. The Ministries of Defence of the Agency’s 26 participating Member States (all EU Member States except Denmark) provide the data. EDA acts as the custodian of the data and publishes the aggregated figures in this booklet. The data are broken down, based on a list of indicators approved by the Agency’s Ministerial Steering Board. This list has four sections, represented in the headings of the data presented in this brochure: ■■

General: macro-economic data to show how defence budgets relate to GDP and overall government spending

■■

Reform: major categories of defence budget spending – personnel; investment, including research & technology; operations & maintenance and others – to show what defence budgets are spent on

■■

European collaboration: for equipment procurement and R&T to show to what extent the Agency’s participating Member States are investing together

■■

Deployability: military deployed in crisis management operations to show the ratio between deployments and the total number of military

In November 2007 the Ministerial Steering Board approved four collective benchmarks for investment: ■■

Equipment procurement (including R&D/R&T): 20% of total defence spending

■■

European collaborative equipment procurement: 35% of total equipment spending

■■

Defence Research & Technology: 2% of total defence spending

■■

European collaborative Defence R&T: 20% of total defence R&T spending

These benchmarks are collective: they apply to the total sum spent by all participating Member States together.

They are voluntary: turning them into national targets is optional. There are no timelines for realising these benchmarks.

In its final section this brochure provides the results of the collective benchmarks.

The definitions, used for the gathering of the data, and some general caveats are listed at the end of the brochure.

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GENERAL - Macro Economic Data GDP, Overall Government Expenditure and Defence Expenditure GDP, Overall Government Expenditure and Defence Expenditure 14 000

+1,7%

+6,7%

€ 12 272

€ 12 072

12 000

+4,0%

-5,6%

€ 12 046

€ 11 584

€ 11 316

Billions of Euros

10 000

8 000 +4,2%

6 000

€ 5 525

€ 5 303

+3,7%

+2,3%

€ 5 728

€ 5 858

+3,2%

€ 6 047

4 000

2 000 € 201

+1,5%

-1,5%

-3,5%

0,0%

€ 204

€ 201

€ 194

€ 194

0 2006 GDP 2

2007 Overall Government Expenditure

2008 Defence Expediture

2009

2010

GENERAL - Macro Economic Data GDP, Overall Government Expenditure and Defence Expenditure - real comparison * GDP, Overall Government Expenditure and Defence Expenditure – real comparison * 14 000

12 000

+1,4%

+3,7%

€ 11 768

+1,6%

-4,2%

€ 12 371

€ 12 200

€ 12 046

€ 11 853

Billions of Euros

10 000

8 000 +3,4%

+1,3%

€ 5 515

6 000

€ 5 774

€ 5 584

+3,8%

+0,9%

€ 5 994

€ 6 047

4 000

2 000 € 209

-1,4%

-1,5%

-2,5%

-2,0%

€ 206

€ 203

€ 198

€ 194

0 2006 GDP

2007 Overall Government Expenditure

2008 Defence Expediture

2009

2010

* Years 2006 to 2009 have been inflated to 2010 economic conditions.

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GENERAL - Expenditure per Capita Expenditure per Capita

Expenditure per Capita 30 000

25 000

+6,2%

+1,1%

€ 24 648

€ 24 910

+3,8%

-6,1%

€ 24 280

€ 23 398

€ 23 217

Euros

20 000

15 000 € 10 881

+3,7%

+3,1%

+1,8%

+3,0%

€ 11 281

€ 11 628

€ 11 833

€ 12 187

10 000

5 000 € 413*

+1,0%

-1,9%

-4,2%

-0,5%

€ 417

€ 409

€ 392

€ 390

0 2006 GDP per Capita * 4

2007

2008

Government Expenditure per Capita

2009 Defence Expenditure per Capita

2010 * Data has been revised

REFORM - Defence Expenditure Breakdown Defence Expenditure Breakdown absolute values Defencein Expenditure Breakdown in absolute values 120

€110,00

-3,6%

+1,3%

€106,00

€107,38 -8,4%

+0,3%

€98,40

€98,65

Billions of Euros

100

80

60

+8,5%

€43,30 €38,80

€47,00 +7,7%

-7,8% +0,3%

€41,80

€43,34 €41,91

+1,9%

€44,15

-0,1% +4,8%

-2,4%

€44,11 €42,87

€40,92

40

20 €8,96 *

+2,7%

-4,7%

€9,20

€8,77

+20,0%

-24,8%

€10,52

€7,91

0 2006 Personnel

2007 Operations and Maintenance

2008

2009

Investment (Equipment Procurement including R&D/R&T)

2010 Other Expenditure * Data has been revised

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REFORM - Defence Expenditure Breakdown Defence Expenditure Breakdown in -absolute values – *real comparison * Defence Expenditure Breakdown in absolute values real comparison 120

€114,39

-6,3%

+1,0%

€107,13

€108,25

-7,0%

-2,0%

€100,68

€98,65

Billions of Euros

100

80

60

+5,5% -8,0%

€47,50 +4,7%

€45,03

€43,69

€42,24

€40,35

+3,4%

0,0%

-2,4%

€45,18 -0,9% €41,87

€42,25

€44,11

+2,4%

€42,87

40

20 €9,32

-0,2%

-4,9%

€9,30

€8,84

+21,8%

-26,6%

€10,77

€7,91

0 2006

6

2007

2008

2009

Personnel

Operations and Maintenance

Investment (Equipment Procurement including R&D/R&T)

Other Expenditure

2010 * Years 2006 to 2009 have been inflated to 2010 economic conditions

REFORM - Defence Expenditure Breakdown Defence Expenditure - percentage breakdown Defence Expenditure - percentage breakdown €201 Billion

€204 Billion

€201 Billion

€194 Billion

€194 Billion

52%

53%

51%

51%

23%

22%

23%

23%

19%

20%

21%

21%

22%

4%

5%

4%

5%

4%

2006

2007

2008

2009

2010

100 % 90 % 80 %

Percentage

70 %

55%

60 % 50 % 40 %

22%

30 % 20 % 10 % 0%

Personnel

Operations and Maintenance

Investment (Equipment Procurement including R&D/R&T)

Other Expenditure

7

REFORM - Investment Breakdown Equipment Procurement and R&D/R&T in absolute values

Equipment Procurement and R&D/R&T in absolute values 45 40

€38,81

€41,91

+7,7%

+0,3%

€32,25

35 €29,14

30 Billions of Euros

€41,80

+10,7%

€42,87 €40,92 +4,8% -2,4%

€33,27

€32,52

€34,31 +5,5%

+3,2%

-2,3%

25 Total Investment

Equipment Procurement

R&D

R&T (Subset of R&D)

20 15 €9,67

10 5

€9,55 -1,2%

€2,66

€8,64

€8,40

€8,56

-9,5%

-2,8%

+1,9%

€2,54

€2,48

€2,26

€2,08

-4,5%

-2,4%

-8,9%

-8,0%

2007

2008

2009

2010

0 2006 8

REFORM - Investment Breakdown

Equipment Procurement and R&D/R&T – percentage breakdown

Equipment Procurement and R&D/R&T - percentage breakdown 2006

2007

80,7% *

2008

79,5%

4,8%

14,5% *

79,2%

4,7%

(1,32%)

15,8%

4,3%

(1,25%)

19,3%

(1,23%)

20,5%

2009

16,5%

20,8%

2010

78,9%

77,9%

4,3%

16,8%

17,7%

(1,07%)

(1,16%)

21,1% Defence Equipment Procurement

4,4%

Other Defence Expenditure

22,1% * Data has been revised

R&D (Includes R&T) 9

REFORM - Personnel Military and Civilian Personnel Numbers Military and Civilian Personnel Numbers 2 500 000

2 425 169 *

484 827

-5,4%

-5,7%

2 294 274

-2,6%

457 392

-5,2%

2 000 000

2 234 487

433 780

-6,2%

-1,7%

2 094 872

-4,1%

426 335

-8,6%

389 719

1 668 537

-2,9%

1 620 188

2 009 907

1 500 000

1 940 342 *

1 000 000

-5,3%

1 836 882

-2,0%

1 800 707

-7,3%

500 000

0 2006 Military Personnel 10

2007 Civilian Personnel

2008

2009

2010 * Data has been revised

REFORM - Expenditure per Military Defence Spend and Investment per Military +2,7%

+4,0%

120 000

+7,2%

+0,7%

€ 111 117

€ 111 845

€ 119 455

€ 116 264

€ 103 622 *

100 000

Euros

80 000

60 000

40 000 € 19 996 *

+14,0%

+2,1%

+5,4%

€ 22 795

€ 23 274

€ 24 522

+7,9%

€ 26 458

20 000

0 2006 Defence Spend per Military

2007

2008

2009

Investment (Equipment Procurement and R&D) per Military

2010 * Data has been revised

11

REFORM - Outsourcing Outsourcing - absolute and percentage values Outsourcing – absolute and percentage values

Total Outsourcing 2006: € 14,1 bln

Total Outsourcing 2007: € 14,4 bln 92,9%

93,0%

94,0%

7,1%

7,0%

Total Outsourcing 2009: € 14,1 bln 92,7%

6,0%

Total Outsourcing 2010: € 15,4 bln 92,1%

7,3%

Outsourcing 12

Total Outsourcing 2008: € 12,0 bln

7,9%

Remaining Defence Expenditure

EUROPEAN COLLABORATION - Equipment Procurement National and Collaborative Equipment Procurement National and Collaborative Equipment Procurement - absolute values - absolute values 30

€ 32,3 € 25,45

€ 29,1

€ 34,3

€ 33,3

€ 32,5

€ 25,19

€ 26,29

€ 24,29

25

Billions of Euros

€ 22,44

20

15

10

€ 7,54

€ 7,14

€ 7,07

€ 6,11

€ 6,08

5 € 1,09

€ 1,00

€ 0,74

€ 0,59

€ 0,48

0 2006

2007

National Defence Equipment Procurement

2008

2009

2010

European Collaborative Defence Equipment Procurement

Other Collaborative Defence Equipment Procurement

13

EUROPEAN COLLABORATION - Equipment Procurement National and Collaborative Equipment Procurement – percentages National and Collaborative Equipment Procurement - percentages 2006

2007

77,1%

2008

78,8%

75,8%

20,9%

18,9%

2,0%

21,2%

2,3%

2009

3,0%

2010

74,7%

76,6%

22,0%

22,0%

3,3% National Defence Equipement Procurement

1,4% European Collaborative Defence Equipement Procurement

Other Collaborative Defence Equipement Procurement 14

EUROPEAN COLLABORATION - R&T National and Collaborative Defence R&T - absolute values € 2,66

2,5

€ 2,54 € 2,271

€ 2,48

€ 2,164

€ 2,26 € 2,027

Billions of Euros

€ 2,08

€ 1,936

2,0

€ 1,813

1,5

1,0

0,5

€ 0,412

€ 0,332

€ 0,254 € 0,131

€ 0,290 € 0,040

€ 0,045

€ 0,246 € 0,032

€ 0,018

0,0 2006

2007

National R&T Expenditure Other Collaborative R&T Expenditure

2008

2009

2010

European Collaborative R&T Expenditure 15

EUROPEAN COLLABORATION - R&T National and Collaborative Defence R&T – percentages National and Collaborative Defence R&T - percentages 2006

2007

85,5%

85,1%

9,6%

81,8%

13,1%

16,6%

1,8%

4,9%

2009

1,6%

2010

85,8%

87,3%

12,8%

1,4% National R&T Expenditure Other Collaborative R&T Expenditure 16

2008

11,8%

0,9% European Collaborative R&T Expenditure

DEPLOYABILITY - Average Number Deployed Average Number of Troops Deployed in Figures 2 000 000

1 940 342 * 1 836 882

1 800 707 1 668 537

1 620 188

1 600 000

1 200 000

800 000

400 000 4,3%

4,2%

4,5%

83 300

77 900

80 177

4,1%

4,1%

67 767

66 313

0 2006 Number of Military Personnel

2007

2008

Average Number of Troops Deployed

2009 % of Military Personnel

2010 * Data has been revised

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DEPLOYABILITY - Operation Costs Operation costs per military deployed and Total Operation Costs € 10 414 Mln

160

€ 9 826 Mln

140 € 9 653 Mln € 8 642 Mln

Thousands of Euros

120 100

€ 157

€ 6 613 Mln

€ 145

80

€ 120 60 40

€ 111 € 79

20 0 2006

2007

Operation costs per military deployed 18

2008

Total Operation Costs

2009

2010

BENCHMARKS Equipment (including as a Percentage of Total Defence Expenditure DefenceDefence Equipment (including R&D) as aR&D) Percentage of Total Defence Expenditure 100 90

19,3%*

20,5%

20,8%

21,1%

22,1%

20%

80,7%*

79,5%

79,2%

78,9%

77,9%

80%

2006

2007

2008

2009

2010

80 70 60 50 40 30 20 10 0 Defence Equipment Procurement & R&D

Other Defence Expenditure

Benchmark * Data has been revised

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BENCHMARKS

European Collaborative Defence Equipment Procurement as a Percentage of Equipment Procurement

European Collaborative Defence Equipment Procurement as a Percentage of Equipment Procurement 100 90

20,9%

18,9%

21,2%

22,0%

22,0% 35%

80 70 60 50 40

79,1%

81,1%

78,8%

78,0%

78,0% 65%

30 20 10 0 2006

2007

2008

European Collaborative Defence Equipment Procurement 20

2009

2010

Benchmark

Other Defence Equipment Procurement

BENCHMARKS R&T as a Percentage of Defence Expenditure 1,32%

1,25%

1,23%

1,16%

1,07%

2,00%

98,68%

98,75%

98,77%

98,84%

98,93%

98,00%

2007

2008

2009

2010

Benchmark

100 90 80 70 60 50 40 30 20 10 0 2006 R&T Spend

Remaining Defence Expenditure 21

BENCHMARKS European Collaborative R&T as a Percentage of Total R&T 100

9,6%

13,1%

16,6%

12,8%

11,8%

90,4%

86,9%

83,4%

87,2%

88,2%

80%

2006

2007

2008

2009

2010

Benchmark

90

20%

80 70 60 50 40 30 20 10 0 European Collaborative R&T spend 22

Other R&T Expenditure

Additional Notes on the Data ■■ EDA is receiving the data from the Ministeries of Defence of the 26 participating Member States. On occassions the data can be revised and this may have an impact on the overall aggregate figure. In order to have the most up to date data please check EDA’s website for updates: http://www.eda.europa.eu/ ■■ Data on GDP, General Government Expenditure and Population numbers have been collected from Eurostat.

However, this data is occassionaly revised which may impact some of the data used by EDA. ■■ The Data provided is at the aggregate level which can produce different figures from other sources due to rounding.

■■ For some spending categories a margin of error exists as accounting systems in the participating Member States differ.

Nevertheless, the presented data presents the best publicly available figures.

■■ Comparisons are made for 2006 to 2010. It should be noted that more firm trend analysis will only be possible after several years of data gathering.

■■ Significant changes in the exchange rates with the Euro has had a considerable impact on the 2008 data; the lower amount of defence expenditure is partly caused by significant drops of some of the pMS’ currencies exchange rates to the euro.

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Explanatory Notes Data collection is based on definitions approved by the participating Member States.

The Definitions below have been shortened and edited for this publication.

■■ 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).

■■ Civilian personnel: The authorised strength of all civilian personnel on 31 December of each year employed by all military establishments and the armed forces.

■■ Military personnel: The authorised strengths of all active military personnel on 31 December of each year.

■■ Personnel Expenditure: All personnel-related expenditure for military and civilian personnel, including from non-MOD sources.

■■ Defence equipment procurement expenditure includes expenditure for all major equipment categories.

■■ Research and Development (R&D): any R&D programmes up to the point where expenditure for production of equipment starts to be incurred.

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

■■ Investment is Equipment Procurement and R&D (including R&T).

■■ 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.

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Explanatory Notes ■■ 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.

■■ European Collaboration is defined as a subset of Collaboration: agreement by at least two EU Member States Ministries of Defence for project or programme contracts. Possible non-EU partners share in such contracts is lower than 50%.

■■ Other: All expenditure that cannot be attributed to another category.

■■ Other Collaborative Expenditure: All collaborative expenditure that does not fall under the European Collaboration definition.

■■ Average number of troops deployed: Average number of troops deployed throughout the year (all Armed Forces).

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THE EUROPEAN DEFENCE AGENCY The European Defence Agency was established in July 2004 by the EU Council. Its mission is «to support the Council and the Member States in their effort to improve the EU’s defence capabilities in the field of crisis management and to sustain the Common Security and Defence Policy as it stands now and develops in the future” (Council Decision 2011/411/CFSP).

FUNCTIONS AND TASKS The European Defence Agency is ascribed the following functions: ■■ identify the Member State’s military capability objectives; ■■ promote the harmonisation of operational needs; ■■ propose multilateral projects to fulfil the objectives in terms of military capabilities; ■■ support defence technology research and coordinate joint research activities; ■■ contribute to strengthening the industrial and technological base of the defence sector.

All these functions relate to improving Europe’s defence performance, by promoting coherence. A more integrated approach to capability development will contribute to better defined future requirements on which collaborations - in armaments or R&T or the operational domain - can be built. More collaboration will, in turn, provide opportunities for industrial restructuring and progress towards the continental-scale demand and market, which industry needs.

On this basis, the Agency’s tasks include: ■■ to work for a more comprehensive and systematic approach to defining and meeting the capability needs of the Common Security and Defence Policy (CSDP); ■■ to promote European defence-relevant R&T, as vital both to a healthy defence technological and industrial base and to defining and satisfying future capability requirements. This will involve pursuing collaborative use of national Defence R&T funds, in the context of a European Defence R&T Strategy which identifies priorities; ■■ to promote European cooperation on defence equipment, both to contribute to defence capabilities and as a catalyst for further restructuring the European defence industry; ■■ to work, in close cooperation with the Commission, on steps towards an internationally competitive market for defence equipment in Europe.

The Agency’s «comparative advantage» should be its ability to comprehend all these agendas, and relate them so as to realise their synergies.

Its special position should allow it to develop uniquely cogent analyses and proposals across the range of its activities.

26

Notes

27

Notes

28

EDA

European Defence Agency

European Defence Agency Rue des Drapiers 17-23 B-1050 Brussels (Belgium) Fax: +32 (0)2 504 2845 E-Mail: info@eda.europa.eu ISSN 1831-9513 Catalogue number: QU-AB-11-001-EN-C

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