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<HR SIZE="2"><P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="7" FACE="Palatino">
<FONT COLOR="#1f1a17" FACE="Times New Roman" SIZE="7">Chapter</FONT><FONT COLOR="#1f1a17" FACE="Palatino" SIZE="7"> 6</FONT>
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<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="5" FACE="Palatino">
The European Security Dimension
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<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
Defense Minister of Italy Sergio Mattarella
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<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<BR>
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<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
<FONT COLOR="#000000" FACE="Palatino" SIZE="7">I</FONT>t is particularly significant that this workshop on the European dimension
 of security is taking place in Berlin. Indeed, for more than 40 years this
 city has symbolized both the division of the European continent and the
 Achilles&#146;s heel of its security. In 1989 a popular, peaceful uprising in
 Berlin led to the restoration of a united Europe, a Europe that was divided
 for too long. It is therefore especially important and symbolic that we
 are speaking about common European security in a Berlin that has regained
 its role as a major European capital. It is perhaps not a coincidence that
 it was in Berlin that some very courageous ideas were expressed recently&#151;ideas
 that will certainly be stimulating for Europe&#146;s political and institutional
 future. As someone who comes from Italy, a country that is equally aware
 of its role and responsibilities in the birth and the construction of the
 European Union, I consider that these ideas augur well for the work of
 this conference.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>&nbsp;A CHALLENGE TO EUROPEAN INTEGRATION</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
In my opinion, the construction of a Common European Security and Defense
 Policy (CESDP) represents a new challenge to European integration, following
 the milestone of a monetary union. Both the common currency and the common
 policy are decisive and distinct elements of the future European political
 entity. Those who agree with me that our ultimate objective is European
 political integration cannot but agree as well that a European Security
 and Defense Policy represents a powerful incentive toward increased federalism
 following the achievement of a common market and a common currency. But
 there is another common element between economic policy and security policy.
 Just as the economic sphere has today assumed a global dimension that transcends
 the European geographic area, so too has the European Security and Defense
 Policy, which is and, in my opinion, will remain closely connected with
 the broader context of European-Atlantic security. Indeed I believe that
 the European Security and Defense Identity, that is to say, the strengthening
 of the European pillar within the Alliance, and the development of a Common
 European Security and Defense Policy in the framework of the European Union
 represent separable but not separate components that are part of the process
 of constructing a European Security and Defense Dimension (ESDD).
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;I am aware that in the debate on European defense, there are some who
 believe that the European initiative in the security and defense sector
 could engender misunderstandings, or even divisiveness, with our Allies
 on the other side of the Atlantic, to the point where Europeans and North
 American Allies might &#147;de-couple&#148; and the North Americans disengage from
 European security. Others, while understanding and supporting the need
 for a greater European effort, believe that the Atlantic framework in its
 present form constitutes an adequate response, including for the new security
 scenarios.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;Still others are of the opinion that the NATO-EU relationship should develop
 within the context of a strict hierarchy between the two organizations.
 And still others go so far as to imagine a substantial degree of European
 autonomy in the security field. It seems to me that all these positions
 are more a reflection of the hopes and fears of those who hold them than
 the expression of the reality that we are trying to build together for
 the European dimension of security and defense.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
Ten years have passed since the basic parameters of the strategic security
 framework in the Euro-Atlantic area underwent a complete transformation.
 In a world characterized by an extraordinarily rapid evolution in all sectors,
 particularly in the technology field, it is difficult to imagine how the
 transatlantic political-institutional system of the past could remain unchanged
 forever. Political leaders as well as ordinary citizens are aware of this,
 to a greater or lesser degree. The only people still clinging to their
 hard and fast positions are intellectual conservatives who identify stability
 with immobility. Such a vision of the world is hardly a positive one, and
 is difficult to defend in a political-strategic scenario as dynamic as
 today&#146;s.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
Reason tells us that the old formulas for European security are no longer
 adequate; indeed, our experience in Bosnia and Kosovo confirms this analysis
 and highlights for both Europe and the Alliance a striking deficiency in
 the means and structures needed to respond adequately to the new security
 challenges. Today&#146;s risks are much more complex, diffuse, and multi-directional
 than those of the past, and, therefore, require more diversified responses.
 Since security is by its very nature multi-dimensional, measures to prevent
 and eliminate the causes of risks are also an integral part of the management
 and implementation of a security policy.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;Earlier in 1999, rhetorical questions were asked in the press regarding
 who is taking on the thankless tasks and doing the dirty work in the Balkans.
 Those who know the reality of the recent conflicts in the Balkan region
 and of that area&#146;s difficult recovery know that such questions are unfair
 and even detrimental to Euro-Atlantic solidarity. Thousands of men and
 women, both civilian and military, working for governments as well as NGOs,
 have been carrying out demanding, difficult, dangerous, and often less
 than glorious tasks for the past five years, and are still doing so in
 order to win the battle for peace in Southeastern Europe.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>&nbsp;INCREASING EUROPE&#146;S CONTRIBUTION TO DEFENSE</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;Those who talk about interlocking institutions know that many diverse
 contributions are all equally necessary in order to achieve our one objective.
 Italy, which is by no means in last place in terms of the men, means, and
 resources directed toward Southeastern Europe, sees daily the extent to
 which all Allies contribute to peace and security in that region during
 this difficult post-war phase of social, political, institutional, and
 economic reconstruction. This shared commitment constitutes the very foundation
 of the Alliance&#146;s values, as well as its future. In this context, an increased
 European initiative in the field of security would be a positive element
 in the Alliance&#146;s adaptation process, as well as in the strengthening of
 the transatlantic relationship. As my colleague Lamberto Dini said recently
 in Florence on the occasion of the Ministerial Council meeting: &#147;More Europe
 in the field of defense means more Alliance, and more Alliance means more
 Europe.&#148; I am convinced that the political vision enshrined in that formula
 is the best way in which Europeans and Allies can perceive fully the raison
 d&#146;&#234;tre, the quality, and the effectiveness of the new Alliance. From the
 Atlantic perspective, the ESDI means a European pillar capable of dealing
 with the new challenges in a framework of security shared with all Allies,
 one that enables everyone to better calibrate their participation.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;It also means an Alliance based on a dynamic and more balanced interaction
 between its two main components, keeping common security truly indivisible
 and shared. From the European perspective, the incorporation of the WEU
 and the development of a European Security and Defense Policy require that
 the European Union embark on a process of renewal and adaptation, going
 well beyond merely institutional aspects. The Union must assimilate and
 develop the elements of a security culture, something that until now has
 been basically alien to it but that will be indispensable from this time
 forward in order to deal with the new scenarios.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>&nbsp;FOUR REQUIRED ELEMENTS FOR A EUROPEAN SECURITY<BR>
 AND DEFENSE POLICY</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;In my opinion, there are four principal elements needed to develop a European
 Security and Defense Policy: (1) institutional governance, (2) the reform
 of military instruments, (3) efficient military spending, and (4) the reorganization
 of the European defense industry.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>Institutional Governance</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;In Helsinki, Sintra, and Lisbon, new institutional organs were defined
 to temporarily govern the European Security and Defense Policy: the Political
 Security Committee, the Military Committee, and the European Military Staff.
 In Feira, these interim institutional arrangements should be confirmed
 and strengthened, and provisions made for their development. Our objective
 is to define permanent arrangements by the end of the year 2000.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
In this context, I believe that the role of the Political Security Committee
 and the action taken by the High Representative for the Foreign and Security
 Policy, Javier Solana, will be especially important in giving impetus and
 coherence to the European Security and Defense Policy. The real added value
 of the Political Security Committee, in my opinion, lies in its ability
 to serve as the guiding organ for crisis management. In that regard, instituting
 effective interaction between the Political Security Committee and the
 NAC will facilitate and consolidate a relationship based on confidence
 and transparency between the Union and the Alliance, in line with what
 we decided together in Washington and Helsinki and reaffirmed in Florence.
 In Feira we hope to approve temporary liaison mechanisms between the European
 Union and NATO and set up joint expert working groups to analyze issues
 of common interest. By the end of the year 2000, we expect to make a common
 decision on definitive arrangements and to establish mechanisms for managing
 relations between the two organizations.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;Personally, I believe that the Security and Defense Policy, precisely
 because of its implications for the use of military force, has a specific
 connotation that makes it unique and not immediately applicable to the
 handling of other policies. European governments will be challenged to
 find a way to reconcile the specificity required for effective management
 of the Security and Defense Policy with the unitary quality of the Union&#146;s
 overall institutional framework.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>Reform of Military Instruments</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;In Helsinki, we set an ambitious yet realistic objective: to achieve,
 by the end of 2003, an initial operational capability based on a European
 rapid projection army corps of between 50,000 and 60,000 troops. These
 troops will be supported by adequate naval and air forces capable of being
 deployed in crisis areas within 60 days and having operational and logistical
 sustainability of at least one year. This would allow them to conduct Petersberg-type
 missions and eventually avail themselves of NATO assets and capabilities.

</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
The interim Military Committee has begun the technical work of elaborating
 the Headline Goal, which should receive concrete responses from the member-countries
 at a Pledging Conference planned for fall 2000. At that time the countries
 will make known their national contributions to this common European objective,
 highlighting once again the European countries&#146; lack of operational capabilities.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;It is clear that these inadequacies will have an effect on the process
 to construct the European defense, as well as on the European capabilities
 that are available to the Alliance. In overcoming these deficiencies, as
 is necessary, each national contribution will be valuable on two levels&#151;European
 and Atlantic&#151;thus giving expression to the solid link between the European
 Union and the Atlantic Alliance.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;In concrete terms, we must seek to attain improved military capabilities
 in the fields of interoperability, availability of projectable professional
 forces, strategic mobility, command, control, communications, surveillance,
 intelligence, precision engagement, and self-defense, and in the ability
 to operate in environments at risk because of the proliferation of weapons
 of mass destruction. These are the priority areas identified in the Atlantic
 Alliance&#146;s Defense Capabilities Initiative (DCI). It is essential that
 there be convergence, in terms of operational capabilities, between the
 European Defense Initiative and the DCI.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>&nbsp;Efficient Military Spending</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;According to an often-cited U.S. study, the European countries, taken
 together, devote to defense about 60% of what the U.S. spends, while their
 operational and projection capabilities represent only 10 to 15% of those
 of the United States. It is easy to see that the price of the lack of European
 convergence is staggering. A recent estimate by high-level NATO military
 authorities states that the cost of the operational gap between the United
 States and the EU amounts to about 30 billion dollars. Such estimates,
 of course, can be debatable in absolute terms, but nonetheless are symptomatic
 of a very real phenomenon of a political as well as an operational nature.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;I say political because the military gap that has been created between
 Europe and the United States induces one to reflect simultaneously on both
 decision-making and operational capabilities. Simply put, the disparity
 in military capabilities could cause an operational as well as a political
 rift between the United States and Europe&#151;which could jeopardize European
 security. The ongoing debate on a National Missile Defense (NMD), beyond
 its merits, highlights the very real political risk of a European security-U.S.
 security uncoupling.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;In this context, it is unrealistic to think that a simple restructuring
 and streamlining of the European countries&#146; forces, however necessary that
 process may be, will sufficiently modernize European military instruments
 to reduce the operational gap. European spending, of course, must be optimized
 in all sectors, but investment and spending on advanced technology must
 certainly be increased.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;The convergence process must be aimed at reducing the so-called overhead
 present in our military instruments, and concentrate on the structures
 that direct and support our operational forces. The process must gradually
 integrate military requirements, both for operational needs and acquisition
 practices. In order to achieve the DCI objectives established by NATO as
 well as the Headline Goals set by the European Union, the convergence of
 European defense policies is no longer optional but rather a necessity.
 Once a homogeneous framework for current European military spending is
 defined, it would be appropriate and useful to indicate how the European
 countries can gradually adopt qualitative standards for military spending
 and identify criteria by which to measure convergence. Some of these criteria
 could be military spending expressed as a percent of GDP, the ratio between
 spending for investment and spending for operations, the percent of expenditures
 devoted to research and development, levels of per-capita military spending,
 and the number of available professional forces compared to the population.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;All of these indicators currently show a high degree of disparity among
 the European countries; convergence criteria must be defined in order to
 enable each to contribute fairly toward the attainment of our common objective:
 improved European military capability. The adoption of convergence criteria
 for military spending, handled in a flexible rather than a rigid manner
 as it was for the common currency, would greatly facilitate the efforts
 to achieve an effective European Security and Defense Policy.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;To this end, it could be helpful to encourage within European institutions
 discussions of decision-making processes for European defense convergence.
 Criteria will be needed for both the financial and the operational aspects;
 the classic financial indicators would be useful for achieving genuinely
 available operational capabilities. Such capabilities would constitute
 the real measure for comparing the contribution of each European country
 to the objectives of the European and Atlantic Security and Defense Policies.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>&nbsp;The Restructuring of the European Defense Industry</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;Common operational requirements and coordinated or common acquisition
 processes will facilitate the creation of a wider European defense market,
 comparable to that of the United States. This, in turn, will stimulate
 broader competition and greater growth opportunities for the European defense
 industry. In addition, the ongoing process of consolidation among the European
 defense companies is narrowing the gap that resulted from the many important
 mergers that took place in the United States.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;Convergence is definitely necessary in order to achieve competition on
 a global scale, though it will be important to avoid creating two markets
 separated by rigid protectionism&#151;a &#147;Fortress Europe&#148; and a &#147;Fortress America,&#148;
 as they are called. The rationalization of the two industrial bases, one
 already achieved in the United States and the other underway in Europe,
 should leave room for action based on sound and efficient policies of industrial
 cooperation. In this regard, I think it is useful to mention a good example
 of such transatlantic industrial cooperation as it relates to advanced
 technology programs. I refer to the Italian-German-U.S. program called
 MEADS (Medium Extended Air Defense System), an anti-missile-defense system
 with ATBM capabilities.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;The reorganization of the European industrial base, leading to the creation
 of transnational companies, should also give impetus to a European convergence
 process for defense-industrial policies and legislation. Such convergence
 should lead to the gradual formation of a European common market for defense,
 eliminating the protectionist tendencies inherent in the Treaty of the
 European Community.
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;An initial concrete step in this direction could be taken with the signing
 of a Letter of Intent by six countries with a highly developed defense
 industry&#151;France, Germany, Italy, the United Kingdom, Spain, and Sweden.
 This step would be an agreement in principle and establish common norms
 and practices in several key areas of the legislation in this sector. Another
 promising step toward cooperation is OCCAR, the four-country (France, Germany,
 Italy, and the United Kingdom) organization that I hope will prove to be
 the embryo of a future European Armaments Agency.
</FONT></P>
<P ALIGN="CENTER"><FONT COLOR="#1f1a17" SIZE="3" FACE="Palatino">
<B>&nbsp;CONCLUDING REMARKS</B>
</FONT></P>
<P ALIGN="LEFT"><FONT COLOR="#1f1a17" SIZE="2" FACE="Palatino">
&nbsp;The process that has begun to create a European Security and Defense Dimension
 now is irreversible, but it must move forward with wisdom and balance,
 with full transparency and complementarity between the two shores of the
 Atlantic. Only in this way will we preserve the synergy between the two
 pillars that is fundamental to common Euro-Atlantic security, the transatlantic
 relationship, and the process of European integration. The next milestone
 will enable us to measure the distance that still separates the vision
 from the reality. I hope, indeed I am convinced, that with the commitment
 of all Allies, that distance will steadily decrease.
</FONT></P>
<P>

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