ECONOMICS BEHIND DEFENCE POLICY: DID BOXER PROCUREMENT FORCE GERMANY INTO THE NATO eFP MISSION IN LITHUANIA?
ECONOMICS BEHIND DEFENCE POLICY: DID BOXER PROCUREMENT FORCE GERMANY INTO THE NATO eFP MISSION IN LITHUANIA?

Summary/Abstract: In 2016 at the Warsaw Summit NATO in response to increased threats from Russian Federation, made a decision to enhance its forward presence (eFP) by establishing four battle groups in Estonia, Latvia, Lithuania and Poland. The battalion size military formation in Lithuania is led by Germany as a framework nation and has a multinational character where other NATO nations contribute. Lithuania has began to spend more money for defence since the Crimea annexation by the Russian Federation and war in Donbas region (Ukraine) and has currently reached NATO’s requirement for defence needs of 2% from Gross Domestic Product (GDP). Due to the increased defence budget the armed forces could afford to procure better armaments, ammunition, re-equip and properly man them. On a similar timeframe decisions for major procurements (for more than 2,2 billion Euro), that will be completed until 2022 were made, where majority of tenders were in favour for German companies. This naturally leads to a conspiracy theory that Lithuania indirectly pays for its security to Germany. But is this really true? Was Germany influenced by these procurements while making decision for eFP mission? This research reveals facts and figures of Lithuanian and German economic and military interrelationship, and presents conclusions that are not in favour for conspiracy theorists but rather outlines rationalistic and pragmatic approach of both nations.

• Details
• Contents