II. Arms transfers to Western and Central Europe

Chapter:

5. International arms transfers

Source:

SIPRI Yearbook 2013

Author(s):

Paul Holtom

There is no necessary, direct relationship between trends in military spending and trends in arms transfers. For example, the majority of most states’ military budget is spent on personnel costs, rather than arms acquisitions. Also, a number of states acquire the majority of their arms domestically. Nonetheless, falling military spending can lead to reductions in the funds available for arms procurement. Moreover, reduced military budgets combined with overall declines in government spending and rising economic uncertainty can lead states to favour arms procurement from domestic producers over imports. This section looks at the effect of declining military spending on the volume of international arms transfers to states in Western and Central Europe in the light of rising economic uncertainty.¹ In particular, it examines delays and cancellations of imports as well as attempts to favour domestic arms producers when making procurement decisions. It also examines how these processes have interacted with, and affected, efforts to consolidate and strengthen the European arms industry and national efforts to boost arms exports.²