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<TITLE>2001Book - Final</TITLE>
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Chapter 32
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Capabilities, Rather Than Institutional Structures
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Admiral Juhani Kaskeala<BR>
Chief of Defense of Finland
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<FONT COLOR="#000000" FACE="Palatino" SIZE="7">D</FONT>uring the EU Finnish presidency, I was deeply involved with drafting the
 Presidency Report, including the Helsinki Headline Goal and other papers.
 Just a week before the Helsinki European Council meeting, I was dispatched
 to Washington by my government to explain the latest details of how we
 had harmonized the texts to reflect what had been agreed to at the Washington
 Summit and then during the Cologne European Council meeting. After discussions
 with Strobe Talbott and others in the State Department and Pentagon, the
 process was judged to be well on track to strengthen also the European
 pillar of NATO. <FONT COLOR="#1f1a17" FACE="Times New Roman" SIZE="2"></FONT>
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Finland, like all other nations, has one set of forces, which are meant
 for national defense and for crisis-management operations. From the Finnish
 point of view, the transatlantic link is vital to our security, no matter
 what arrangements prevail between the European Union and NATO. A few days
 after my trip to Washington, I went to Moscow to bring the same message
 there: this is the essence of the Presidency&#146;s report, and this is the
 Headline Goal, its program, and its intentions. After lengthy discussions
 with Colonel-General Leonid Ivashov and Deputy Foreign Minister Gusarov
 you can probably guess what their answer was. They came to the conclusion
 that although they still have suspicions, as long as they believe we are
 not building up the European pillar of NATO, it is all right. They see
 the project weakening rather than strengthening the transatlantic link.

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But I believe the project is about improving capabilities. The heart of
 the matter is capabilities. The Helsinki presidency report even begins
 by discussing the capabilities and discusses the institutional structures
 later, because these are secondary items. Capabilities are necessary if
 the European Union is going to act autonomously. In the Helsinki Conclusions
 the member-states are committed to improving their capabilities in the
 areas of availability, deployability, sustainability, and interoperability.
 We also briefly identified collective capability goals and national development
 goals, which mesh with the Planning and Review Process, with NATO and,
 of course, with the Headline Goal.
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To address the shortfalls, most member-states agree that we should first
 develop forces for the broadest range of Petersberg tasks. These forces
 can be used in all Petersberg scenarios, and are low-cost, key capabilities
 enhancers. Once these forces are developed, we can take on short-term projects
 and then more expensive long-term projects using collective EU assets.

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The problem here, however, is to what extent NATO assets and capabilities
 can be taken into consideration as we prioritize. This key question must
 be answered before we can go any further with the process. I believe there
 are four possible choices. For those of you who have taken part in NATO
 defense planning, none of this is special news, but the possibilities are
 multinationalism, role specialization, using collective capabilities, and
 using peer pressure.
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Multinationalism is well illustrated by Nordic cooperation. According to
 our Defense Minister, our Nordic pool of forces can send a maximum of one
 Nordic brigade to UN operations, EU operations, or NATO-led operations.
 But there are certain requirements. For example, Denmark will not participate
 in EU-led operations. But because we need redundancy and backup, we have
 held discussions with the UK, which is willing to fill in a Nordic brigade
 when Denmark does not participate. Similarly, Norwegian, Finnish, and Swedish
 soldiers are ready to reciprocate just as they do today by being part of
 the UK brigade in KFOR. An interesting part of the cooperative Nordic concept
 is that it includes Norway, which is a non-EU NATO member. Our intention
 is to promote multinational units that include non-EU country forces. We
 train regionally, in the Nordic Peace exercises, and have Nordic planning
 element in Stockholm that works to harmonize our projects. We also follow
 the &#147;lead nation&#148; concept: Finns are taking care of command and control
 aspects, Swedes are developing the multinational logistics, and Norwegians
 are taking care of the medical units.
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<I>Role Specialization. </I>Whenever Finland sends a battalion&#151;currently we have
 three in international operations&#151;we can promise that it is going to be
 in place for three, four, or five years. We have sustainability. The Brits
 have deployability: they can rapidly produce entry forces. With role specialization,
 we would come in as follow-on forces and provide the sustainability. If
 we have three battalions in international operations, the UK should have
 36 battalions, and Germany 45. I do not see such numbers in current peace
 operations, but the scale is available.
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<I>Collective Capabilities.</I> Cost-sharing formulas are available for holding
 common assets in the European Union. I see no reason why we should not
 collectively own some of the assets and use these formulas.
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<I>Peer Pressure.</I> It was proposed that peer pressure be implemented through
 convergence criteria about a year ago. There was much discussion about
 such criteria, but quite a lot of difficulties arose because of differences
 in national defense systems. I am the first to say that we should spend
 better rather than spend more. If we look at Finland&#146;s defense budget,
 which used to be 1.7% of the GDP, it is now 1.4%, even 1.3%. Our percentage
 has gone down, not because we decreased our defense budget but because
 the GDP has grown about 5% annually for the last five years. But if we
 look at the procurement budgets of the EU 15, I wonder whether you would
 guess their order. The UK is first, France is second, then comes Germany.
 But per capita, Sweden is first, the UK second, France is third, and Finland
 is fourth. In absolute terms, Finland spends more on procurement than Canada,
 twice the amount of Denmark or Poland, and three times more than Belgium.

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How do we do this? Because of conscription, the personnel costs are very
 low: 30%. During the last five years, we paid $3 billion for 64 F-18s.
 We have projects going on. We can allocate money for procurement. That
 is a way to produce sustainability. We have 7,000 to 10,000 reservists
 on 12-month contracts queuing for operations, because, often after their
 university studies, they are willing to spend a year participating in operations
 in the Balkans. In Finland, it is considered every man&#146;s right to do his
 military service. More than 80% do it, and we have a strong, broad base
 to recruit for international operations.
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In early August 1999, when the Finnish Battalion transferred to KFOR, the
 UK Brigade Commander was aghast when I told him that we were going to produce
 a battalion 90% of which would be reservists. Two months later, when I
 went to the inspection, the Brigade Commander said, &#147;Admiral, please send
 me more of these men.&#148; The battalion is the best he has because most of
 these chaps have professional training in addition to their military training.
 Also, their education level is very high; 60% are high school graduates,
 and the average age is 25, a bit older than other soldiers.
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I am going to stop here because these benchmarks are based on pure GDP
 percentages, which is not the right way to determine convergence criteria.
 The criteria should be based more on output, for example, How many battalions?
 How many ships? What sort of collective assets? However, I do believe that
 this project is a win-win one for both organizations, because it is about
 capabilities. I believe we should focus on the output of nations, because
 money should not be the only yardstick. I very much like what Lord Robertson
 said, quoting Dick Cheney: &#147;If you cannot ride on two horses, why are you
 in the circus in the first place?&#148; I think we should learn to ride on two
 horses.<BR>

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