Redstormer
06-18-2011, 01:26
The Dutch cabinet agreed majore cuts in defence ministry spending in an effort to save €1 billion. Over 6,000 military service personnel and defence ministry civil servants are facing compulsory redundancies. In total, 12,300 MoD jobs will go as part of the savings package. Some 2,300 vacancies will not be filled and a further 4,000 people will not be replaced when they leave. The ministry currently has a workforce of almost 69,000. The redundancies will affect all ranks in the defence ministry. DefMin Hans Hillen also plans to scrap land vehicles and Cougar helicopters, cut the 87 F-16 fighterjets by around a third, and to sell off a number of naval vessel. The controversial purchase of a second JSF fighter jet for €100 million will go ahead to protect the participation of Dutch firms in the development and production. The defence buget as a percentage of GDP is expected to decline from an avaregae of 1,5% during review period to 1,3% in 2015 due to high fiscal debt of the country, along with with the financial constraints of the MoD.
The defebnce expenditure of the Netherlands recorded a CAGR of 5,33% during the review period and stood at US $12.2 billion in 2009. During the forecast period, the high fiscal debt of the country, along with the financial constraints of the MoD, is expected to cause the defence budget to decline of -0,63% from US$11,3 billion in 2010 to US$10,9 billion in 2015. The defence buget is primarily driven by peacekeeping, assistance for the internal defence forces of the country, and the modernization of the Armed Forces.
The defence budget as a percentage of GDP is expected to decline from an average of 1,5% during the review period to 1,3 % in 2015.
The defebnce expenditure of the Netherlands recorded a CAGR of 5,33% during the review period and stood at US $12.2 billion in 2009. During the forecast period, the high fiscal debt of the country, along with the financial constraints of the MoD, is expected to cause the defence budget to decline of -0,63% from US$11,3 billion in 2010 to US$10,9 billion in 2015. The defence buget is primarily driven by peacekeeping, assistance for the internal defence forces of the country, and the modernization of the Armed Forces.
The defence budget as a percentage of GDP is expected to decline from an average of 1,5% during the review period to 1,3 % in 2015.