THE FUNDING UNDER IN THE NORTH ATLANTIC ALLIANCE

Abstract

In this article, I set out to present the importance of allocating financial resources within the North Atlantic Alliance, as well as the costs of operating and implementing Alliance policies, which are funded by direct and indirect contributions from Member States. Thus, direct financial contributions to NATO are common funding and joint funding and indirect financial contributions come in different forms. Indirect financial contributions are by far the largest type of contribution and include Allied participation in NATO-led operations and missions. The North Atlantic Alliance regularly collects data on Allied defense spending and presents aggregates and subsets of this information. The Ministry of Defense of each Ally reports the estimated current and future defense expenditures according to an agreed definition of defense expenditures. Allocated amounts are payments currently made by allied nations or to be made during the fiscal year. The essence of the article consists that NATO funding is found in the defense budgets of Alliance member countries. Of these, the majority are national expenditures, which are practically a form of indirect contribution to NATO funding. At the same time, it can be seen that NATO is an intergovernmental organization. The Member States allocate the necessary financial resources for day-to-day operations. The Member States shall provide the necessary and available facilities for consultation, decision-making, and implementation of policies established by consensus. NATO is a political alliance backed by a military structure. It provides for the common defense of member countries, cooperation with partner countries, and the implementation of Alliance policies, mainly for peacekeeping. Therefore, the novelty of this approach lies in the fact that it highlights the problems facing NATO funding today, the funding mechanism, and the construction of the common budgets of the Alliance.