NATO prepares for tussle over joint capability fund

NATO's members are set to decide how to split funding on joint capability projects following their May summit in Chicago, representing what one German military official called the "snake-pit issue" now facing the alliance.

Speaking in Brussels on 4 June, NATO's Secretary General Anders Fogh Rasmussen said that debate on the joint fund - the Security Investment Programme (SIP) - "is definitely one of the follow-up works to Chicago we have to do. We will look more closely into how to make our funding mechanisms fit for purpose".

After setting benchmarks on interim missile defence and new 'Smart Defence' (SD) projects at the Chicago summit, in the coming weeks NATO's 28 allies will decide how to loosen the SIP's strict funding rules to pay for the military capabilities and services the allies need during operations, and to maintain the same during times of peace. This could well be challenging, for several reasons.

Firstly, all the allies are under budgetary pressure, which makes predictions about their future contribution to the SIP's size and constancy difficult.

Secondly, national capitals - particularly those of the larger contributing allies - track the SIP's disbursements closely to ensure the fund does not subsidise the national defence budget of one ally or another.

Thirdly, using the SIP to pay for non-collective operational costs is, except in rare instances, forbidden by the programme's rules.

Lastly, all SIP decisions require unanimous approval across the 28 nations.

Perhaps because of the subject's sensitivity, NATO officials from Rasmussen down remain vague about the maelstrom ahead.