Class 6: Defense budgets, mobilization, and defense technological and industrial base

What are the defense budget basics?

1. Defense expenditure vs budget

2. Budget authority (commitments) vs outlays (payments)

3. Base budget vs variable budget

Defense expenditure vs budget

The difference between total spending and planned allocations

Budget authority vs outlays

Approved & promised expanses and gradual payments

Base budget vs variable budget

Fixed & regular spending vs flexible irregular spending

What are the main military budget categories?

1. personnel

2. running costs

3. equipment

4. infrastructure

5. research and development

   • + research and technology

6. operations

What are the key military budgeting considerations?

• Trends over time: evolution of spending

• Time factor: absorption rates and budget momentum

Defense industrial sector

A sector of the economy that:

• Produces military equipment for governments

• Provides military power and national security

What are the challenges in the (European) defense market?

1. cost vs performance

2. legacy systems vs future technology

3. national sovereignty vs cooperation

4. interoperability vs national sovereignty

5. consolidation vs innovation

6. developments vs off-the-shelf purchases

European Defense Agency

Intergovernemental defense coordination

EU Defense Package (2009)

• Intra-EU defense transfers

• Defense procurement

Act in Support of Ammunition Production (ASAP)

A 2023 EU act which increases the 155 mm ammunition production & refils stocks.

European Defense Industry Reinforcement through common Procurement act

2023 EU act:

• Common procurement framework

• Improves EU industry competitiveness and state aid

European Defense Industrial Strategy

2024 EU act:

• Push for collaborative defense procurement

• 1,5 billion euros for EU Defense Industry Programma

• Link to NATO capability requirements

White paper for European Defense Readiness 2030

2025 EU act:

• Closing capability gaps

• Deepening the EU defense market

• Enhancing readiness for worst-case scenarios

• Member-states retain control over national procurement

What aere the key aspects of military mobilization?

1. Standing force structure

2. Conscription and reserves

3. Private military companies

4. Defense industrial base

5. Requisitioning options

6. Social media mobiliaztion

Clausterwitz’s Trinity of War

1. People: emotion, violence, and nationalism

2. Armed forces: operational uncertainty and risk

3. Government: strategic direction and control over war efforts