In the News

Open a bank

Max Bergmann and Siena Cicarelli explain how creating a bank could resolve NATO's inability to adequately finance defense.

NATO has a critical capability gap that is hindering its ability to guarantee the security of its member states: its inability to finance defense. If nothing is done, this gap will only grow in the aftermath of the COVID-19 pandemic.

Paying for military forces and deployments has traditionally been the responsibility of individual member states, with NATO ensuring those forces are able to fight together as one. But an alliance built on collective defense must do more than just come to the defense of its members. It must also, as Article 2 of the Washington Treaty holds, “encourage economic collaboration.” As such, NATO should create its own bank.

The above excerpt was originally published in Atlantic Council. Click here to view the full article.

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Authors

Max Bergmann

Senior Fellow

Siena Cicarelli

Research and Program Associate