Common Funding in NATO

An analysis of the NATO experience in common funding of infrastructure, operating accounts, and consortium activities. Guidelines for U.S. participation in future common funding activities in Europe are suggested. All three types of common funding have been of financial benefit to the United States. The United States spends more than twice as much on defense as all the other allies together; but under infrastructure, operating, and consortium accounts, U.S. expenditure averages less than half the amount contributed by other members. The United States has been the major beneficiary as a user of the common infrastructure facilities. Participation in future common-funding activities will be advantageous to the United States as long as U.S. strategic policy favors a strong local defense oriented toward "flexible response" in Western Europe. The French position bears watching since common-funding projects appear to be one of the few forms of allied cooperation in which France will continue to participate on a limited basis.