NATO Secretary General Anders Fogh Rasmussen has been quoted as saying
economic growth was dependent on global security and that governments
should be aware of this when cutting defence budgets.

Rasmussen
said in an interview that pressure on governments to reduce budget
deficits would undoubtedly lead to cutbacks in defence spending but
urged NATO countries not to undermine security.

“All governments
should be aware of the long-term impact of too deep cuts in defence
budgets because we know from experience that economic growth is very
much dependent on a secure international environment,” said Rasmussen.

“We
know that instability and insecurity hamper economic growth. So if we
make too deep cuts in defence budgets it might have a long-term
negative impact on economic growth,” he said.

Rasmussen said it
was important to ensure limited budgets concentrated on making armed
forces capable of adapting to the demands of modern warfare.

“If
cuts are made primarily within the more stationary parts of our
military and if new investments are directed towards more flexible and
more mobile and more modern armed forces, then budgetary constraints
could be turned into something positive,” he said.