My Lords, this week marks 70 years since 12 nations put their signatures to the North Atlantic Treaty and agreed that an attack on one was an attack on all. It is a privilege for me to open this debate celebrating the founding of that august institution, and I look forward to hearing the informed contributions of noble Lords who have had direct involvement in NATO, whether militarily, diplomatically or politically.
It is surely apt to use this moment to reflect on the achievements of what is rightly hailed as the most powerful defensive alliance the world has ever seen. During the Cold War, an age of unprecedented risk from atomic weapons and Soviet expansion, NATO provided the nuclear umbrella that is our ultimate deterrent, and a vital conventional shield against aggression. It is worth asking ourselves: but for NATO’s deterrence, would the Berlin Wall have fallen some 30 years ago? Would the values of the West have triumphed? Would millions in eastern Europe have been given the opportunity to live lives that are freer, more secure and more prosperous?
In signing the treaty seven decades ago, President Harry Truman was moved to express his belief that had NATO,
“existed in 1914 and 1939 … it would have prevented the acts of aggression which led to two world wars”.
It is of course impossible to test Truman’s hypothesis, but there is little doubt about the role NATO has played over the last seven decades in sparing us the terrible prospect of a third world war. Nor is there any doubt about the significance of the UK’s involvement in alliance successes. We were one of its 12 founder members; we were the providers of both of its first headquarters in London; and our great wartime general, Lord Ismay, was NATO’s first Secretary-General.
Today NATO is much more than the entity it was under Lord Ismay. For one thing, it has grown. Last month we marked the 20th anniversary of the accession of the Czech Republic, Hungary and Poland, and the 15th of the accession of Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovakia and Slovenia. Yesterday it was the turn of Albania and Croatia to celebrate their 10th anniversary as part of the alliance.
At the same time, as the threats have developed, so NATO has adapted. I remember some arguing, during my first stint as Defence Minister in the mid-1990s, that NATO was no longer all that relevant in a post-Cold War world. But in the modern era the alliance has repeatedly proven its worth, from ending conflicts in the western Balkans to supporting the United States after the atrocity of 9/11. On that occasion, the allies invoked Article 5 for the very first time, leading to the international response in Afghanistan designed to stop that country becoming a haven for terrorism. Significantly, NATO personnel remain there today, training local forces and creating the conditions for peace.
NATO has always stepped up, and I argue that today it is more relevant than ever. Consider the dangers we face. Russia is once more resurgent. Its pattern of aggression over the past decade—from illegal activity in Ukraine and Crimea to its interference in the sovereign affairs of other states and its deployment of nerve agents on the streets of Salisbury—undermines its claim to be a responsible international partner upholding the rules-based international system. At the same time, we are wrestling with a multitude of threats emanating from NATO’s southern periphery, including terrorism, instability and illegal migration. With Russia’s more challenging activity in the high north and the Atlantic, it can truly be said that NATO now has a 360-degree focus.
We often say that NATO represents the bedrock of European security. Equally, though, the commitment of the United Kingdom to that security remains as steadfast as ever. We have always been at the forefront of the alliance, benefiting as we do from Europe’s largest defence budget. As we mark 50 years of the UK’s continuous at sea deterrent, it is also worth reflecting that we are the only ally to assign all our nuclear forces to NATO’s defence, which we have done since 1962. All member states benefit from our nuclear capability, which gives the alliance another centre of decision-making to complicate the calculations of our adversaries. Indeed, the Brussels summit declaration last year recognised that critical NATO contribution.
At the same time, we hold the posts of deputy supreme allied commander Europe and chairman of NATO’s Military Committee. We host HQ MARCOM at Northwood; the HQ of the Allied Rapid Reaction Corps (ARRC) at Imjin Barracks, Innsworth; the NATO Intelligence Fusion Centre at RAF Molesworth; and the Joint Electronic Warfare Core Staff at RNAS Yeovilton.
Besides the nearly 1,000 British personnel serving in NATO’s command structure, we are contributing across alliance operations. As part of the Enhanced Forward Presence, we have forces on the ground commanding a battalion-size battle group in Estonia and a reconnaissance squadron in Poland. Our troops are also strengthening the security infrastructure of nations stretching from Iraq to Afghanistan. In the skies, our air force is policing the airspace above the Baltic and Iceland, and we have recently made a significant contribution to NATO’s Readiness Initiative, adding Apache attack and Wildcat reconnaissance helicopters to our Estonian presence. Significantly, the UK was also the first ally to offer offensive cyber capabilities to the instruments at NATO’s disposal.
The central proposition that I seek to advance today is that NATO’s importance is increasing. The world is becoming more complex and unpredictable. We have entered a new age of constant competition. It is an increasingly grey zone of proxy war, cyberattack and fake news. The boundaries between peace and war are blurring. We do not know what dangers lie down the line.
Since the Wales summit of 2014, the UK, alongside the US, has taken a leading role in making the alliance fit for purpose. Major strides have been made. The alliance is evolving rapidly. It has developed a stronger, larger command structure—influenced by senior British military officers in NATO—and has agreed to augment its current staff with more than 1,200 extra personnel. It has upped its spending. Non-US spending increased by $87 billion between 2014 and 2018. It has also widened its geographical focus to take a 360-degree approach to security, ensuring that the alliance is able to respond to threats and challenges from all directions. This includes contributing to NATO’s missions in Afghanistan and Iraq to build long-term stability, and anticipating growing competition in the Arctic.
However, given the pace of change and the persistence of our adversaries, the alliance cannot afford to rest on its laurels. Indeed, it must inject greater pace into its transformation. So in December the UK will host NATO heads of state and government. This will be an opportunity to do three things. First, we should remind parliaments and the public across the alliance of the need to show unity and resolve in the face of determined aggressors whose game plan is to divide and rule. In the short term that is about standing up to the Kremlin’s breaches of the INF Treaty and dealing with the threat of new Russian missiles. In the long term it is about continuing to show that adventurism has its cost. We should never forget that, as Secretary-General Jens Stoltenberg said:
“NATO is 29 allies … friends. Russia doesn't have that, China doesn't have that”.
Secondly, it will be about demonstrating that our words are matched by action. Central to this is NATO’s Readiness Initiative, which will enhance our deterrence by improving the alliance’s readiness and responsiveness, as well as its ability to reinforce. It will also be about getting to grips with NATO governance, which in the past has suffered from inefficiency and poor project management. It will be about reforming the headquarters function to speed decision-making processes and enable even faster reactions on the ground, and it will be about strengthening NATO-EU co-operation so that effort is complemented and not duplicated. Significantly, work is already under way to bolster a joint approach to hybrid warfare.
Above all, achieving such bold ambitions will require bolstering burden sharing. All allies have committed to spend 2% of GDP on defence and 20% of that on major equipment by 2024. This will be the most significant strengthening of NATO’s collective defence in a decade, but we must maintain our momentum if we are to adjust to new and evolving threats. Despite important progress, the US still accounts for approximately 50% of the allies’ combined GDP and more than 70% of their combined defence expenditure. Expecting US taxpayers to keep picking up the tab is unreasonable, especially when other allies are running up big surpluses.
This brings me to the third item on our December agenda. This is simply to recognise the pivotal role that the US continues to play in transatlantic defence. It is true that the security of Europe and the security of the United States are intimately bound together, united as they are by the common threads of democracy, liberty and the rule of law, and it is true that NATO is the living embodiment of our transatlantic bond—but it is also true that we take these links for granted at our peril. Any weakening of those bonds would make us all less secure.
Back in 1949, 12 allies gathered together and vowed never again to let conflict devastate the continent. As President Truman said in his historic speech:
“If there is anything inevitable, if there is anything unconquerable in the world today, it is the will of the people of all nations for freedom and peace”.
Since those days, NATO has proved the best guarantor of that peace and that freedom. It has been tried and tested; it has never failed. But in some senses, of course, I know that I am preaching to the converted. Most, if not all, Members of your Lordships’ House grew up in the chill of the Cold War. When the Soviet Union was casting its long shadow, we had abundant cause to be thankful for NATO’s defensive shield, yet in today’s very different world of more opaque dangers, a new generation does not have quite the same affinity for our treasured alliance, despite its self-evident importance.
So, in this anniversary year, we must seize the opportunity to remind both parliamentarians and the wider public at large about the value that the alliance brings. Indeed, we are already doing just that, not simply through debates such as today’s but through other means, for example a NATO 70 campaign run by our Armed Forces, our representation on the NATO Parliamentary Assembly, whose current president represents Bridgend in the other place, and the leaders’ meeting in London in December. For seven decades NATO has safeguarded our people and our prosperity. By renewing our pledge to empower the alliance, we will ensure that it continues to protect us all for 70 years and more into the future. I beg to move.
My Lords, this has been a fascinating, wide-ranging and constructive debate, and I have been very firmly struck by the support which our great NATO alliance commands in your Lordships’ House in its 70th year. I feel sure I will not be alone in finding that enormous and enduring fund of good will both heartening and reassuring. I am grateful to all noble Lords who have spoken for sharing their knowledge and experience of defence and security policy, and of NATO in particular. In expressing support for the alliance, it is perhaps unsurprising that a number of contributors chose to home in on the theme of resources and defence spending among NATO allies. The noble Lords, Lord Robertson and Lord West, spoke of the need for allies to channel those budgets wisely to deliver effective military capability.
Allies have committed to spend 2% of GDP on defence by 2024: that commitment was repeated at last July’s NATO summit. The UK has made it clear that the 2% commitment should be seen as a floor, not a ceiling, but equally I do not believe we should fixate on percentages. As the noble Lords, Lord Robertson and Lord Judd, said, it is about looking at what the threats are and then at how we have the capabilities to deal with them, making sure that those capabilities are properly financed and supported. I understand the call from my noble friend Lord Sterling that we in this country should spend more on defence. In the UK, we spend a minimum of 2% of GDP on defence; we also meet the target of spending 20% of our defence budget on new equipment and associated R&D. We are forecast to increase the proportion of our GDP spent on defence in 2018-19 and 2019-20, after the October 2018 Budget announcement. We should appreciate that the resultant figure will remain considerably above the 2% benchmark.
The noble Baroness, Lady Smith, criticised some of the areas of spending we count under the defence heading. I am sure she will know, but will not mind my repeating, that it is NATO that determines the definitions for categorising defence spending, not the UK. Like other NATO allies, the UK regularly updates its approach to ensure it is categorising defence spending fully in accordance with the NATO guidelines. We did this during the SDSR following machinery-of-government changes, as well as to reflect the changing nature of defence spending over time.
The noble Lord, Lord Robertson, the noble Baroness, Lady Smith, and my noble friend Lord Patten, among other speakers, emphasised the importance of fairer burden sharing between allies. We can reasonably argue that this is a case of a glass nearly half full. Allies are making significant progress on burden sharing. The Secretary-General has calculated that non-US allies will spend an additional $100 billion between 2016 and 2020, increasing to over $350 billion by 2024, and eight allies will be spending 2% this year. We welcome the growing number of allies that have made commitments to meeting the 2% target by 2024, but there is more to be done. We cannot ignore the fact that some allies are spending less than 1.5% of GDP on defence, and three of these are spending less than 1%. I assure the House that we will continue to work with allies to ensure that defence investment is prioritised and sustained.
This is not, however, spending for the sake of spending. It must be considered with the other aspects of alliance burden sharing. That includes cash; capabilities, or what capabilities allies assign to the alliance; and commitments, in other words the NATO operations and missions that allies contribute to. That is why the pledge also includes agreement that:
“Increased investments should be directed towards meeting”,
NATO “capability priorities”, and that allies should,
“display the political will to provide required capabilities and … forces when they are needed”.
The noble Lord, Lord West, referred to the need to maintain complementarity between NATO and the EU in a defence context, a theme echoed by the noble Lord, Lord Bilimoria. The UK’s vision is of every European nation stepping up to modern security challenges, taking responsibility, sharing the burden and investing in our shared security. We must have a united, modernised and fully resourced NATO, able to fulfil its crucial collective defence role and taking a comprehensive approach to Euro-Atlantic defence and security. We need deep security and defence partnerships between like-minded and capable nations, strengthening co-ordination and interoperability and underpinning our work in multilateral organisations. We also need a globally competitive and outward-facing European defence industrial and technological base, driving innovation and delivering the capabilities that Europe needs for its security.
There is frequent discussion on the theme of EU strategic autonomy. We agree that Europe needs to do more to improve its own security and that the EU can play a valuable supporting role, whether using its political weight and economic levers or supporting member states in countering hybrid tactics, building resilience and developing vital defence capabilities and interoperability.
Does the Minister not think there are real dangers in the route the EU is going down, with PESCO, the European Defence Fund and the fact that, in our negotiations with it, on a couple of occasions now we have been stonewalled when it comes to UK industry being involved in things—and one can think separately of Galileo? Is it doing the best for the defence of us all in a European or NATO context?
I very much agree. We find the concept of EU or European strategic autonomy problematic if, as it appears to be, it drives an EU-exclusive or enclosed, institutionalised approach to security and defence that shuts out key strategic partners and could duplicate or undermine NATO. We see that exclusive approach prevailing in EU defence initiatives such as the European Defence Fund and PESCO, which otherwise have the potential to boost, in a coherent way, much-needed investment and support to capability development. That is exactly why we will continue to argue in favour of an open and flexible approach, to ensure that European security benefits from the capabilities and resources that the EU’s closest strategic partners can bring to bear.
My noble friend Lord Patten and the noble Lords, Lord Tunnicliffe and Lord Touhig, all spoke powerfully and with authority about Russia, undoubtedly NATO’s most significant long-term challenge. I listened with great respect too to the noble Lord, Lord Judd, on this topic. The November incident in the Black Sea has shown vividly how serious the Russia challenge has become and how robust we must be in response. Noble Lords will be well aware that NATO does not seek confrontation and poses no threat to Russia, but recent Russian actions, including the Black Sea incident, have confirmed that NATO’s dual-track approach to Russia, of strengthened deterrence and defence backed up by hard-headed dialogue, is justified. We reaffirmed this approach at the Brussels summit last July, and will do so again at the foreign ministerial meeting in Washington this month.
As my noble friend said, Russia will continue to look for different ways to test NATO and its allies and partners. In both words and deeds, we need to be prepared to respond, and that is why NATO is already adapting its political and military posture. We are committed to driving forward efforts to modernise NATO, as I mentioned in my opening speech, enabling the alliance to respond to the threats it faces more effectively and with more agility. To test that agility and to enhance our contribution, as I am sure my noble friend Lord Attlee will have observed, the UK deployed some 3,300 personnel, as well as ships and planes, to Norway for NATO’s biggest exercise in 2018; exercise Trident Juncture had some 50,000 troops from 31 NATO and partner nations. This delivered undoubtedly a strong signal that allies can operate at an impressive scale and move across Europe in the event of a crisis. Again, my noble friend will be interested to know that, in spring and summer this year, we will demonstrate a robust posture in the Baltic region by our participation in the US-led BALTOPS exercise, Baltic Protector and a range of other military activities. We have also deployed 800 Royal Marines to Norway in 2019 to take part in cold-weather training. In March last year, a Royal Navy submarine took part in ICEX with the US Navy for the first time in 10 years, and the Navy will mount regular under-ice deployments in the years to come. There is much else that we are doing to up the tempo of our activity as a proportionate response to an assertive Russian posture.
We are also constantly looking at how we can build other structures that complement NATO as the bedrock of our defence. Last June, the Defence Secretary signed the comprehensive memorandum of understanding establishing the joint expeditionary force with our eight partners in that agreement. This year, the JEF signature activity will be the Baltic protector deployment, a large-scale maritime and amphibious exercise in the Baltic Sea, as I mentioned, between May and July 2019.
My noble friend Lord Cormack spoke with his customary sincerity about the need to ensure that we improve relations with Russia. On dialogue, NATO should continue to engage with Russia when it is appropriate and in our interests to do so, so that we can clearly communicate our positions. Periodic focused and meaningful dialogue through the NATO-Russia Council provides a means to avoid misunderstanding, miscalculation and unintended escalation, and to increase transparency and predictability.
In addition, to the NATO-Russia Council, we continue to use other fora, such as the OSCE and direct mil-mil links, to mitigate the risk of escalation and to voice concerns over Russian behaviour, including its failure to uphold treaty obligations. However, I have to tell my noble friend that, as the noble Lord, Lord Judd, reminded us, there can be no return to business as usual until there is clear, constructive change in Russia’s actions that demonstrate compliance with international law and its international obligations.
A number of noble Lords, including my noble friend, Lord Cormack and the noble Lord, Lord Bilimoria, mentioned China. It is instructive to remind ourselves of the words of the NATO Secretary-General in February this year:
“NATO and China have already worked together to combat piracy off the coast of Somalia. And our militaries are in regular contact. But China’s rise also presents a challenge. One example is of course the concern many Allies have expressed about China’s increasing investment in critical infrastructure, such as 5G. We have to better understand the size and the scale of China’s influence, what it means for our security. And we have to address it together”.
I would add that from the UK’s perspective China is an important economic partner. We do not expect to agree with the Chinese Government on everything, but we strongly support China’s greater integration into more of the world’s key institutions and organisations as its global role and responsibilities grow. We are committed to our relationship with China, which enables both countries to benefit and also allows us to be frank with one another on areas where we disagree.
The noble Lords, Lord Touhig and Lord Bilimoria, spoke of the current difficulties in the relationship between the United States and Turkey. We have repeatedly raised our concerns at ministerial and official level about the proposed Turkish purchase of S-400 missiles. Turkey is a valued NATO ally on the front line of some of the UK’s and the alliance’s most difficult security challenges, and we readily acknowledge that defence equipment procurement decisions are for individual nations. However, all NATO allies have committed to reducing their dependence on Russian-sourced legacy military equipment, and we believe that the proposed purchase would pose real challenges for the interoperability of NATO systems.
The noble Lord, Lord Robertson, spoke of the importance of ensuring that United States leadership in NATO is maintained and encouraged, and the noble Lord, Lord Touhig, expressed similar views. It is true to say that the White House in recent years has sometime proved unpredictable in its pronouncements, but my noble friend Lord Sterling was quite correct: President Trump has been clear about his commitment to NATO and Article 5. At January’s US missile defence review launch he confirmed that he was 100% behind the alliance. Those are not just words. We should recall that the United States continues to invest heavily in European security, spending $6.5 billion on the European defence initiative in 2018-19. The US also provides a huge proportion of NATO collective defence capabilities, including some which are unique to the alliance, such as strategic bombers, full-spectrum naval forces and strategic intelligence. Thanks to the EDI budget, there were in 2018 approximately 6,850 US troops in Eucom, and EDI is only one of a range of different pots available to fund approximately 80,000 US troops in Europe. Since 2015, there has been more than a sixfold increase in funding available through the EDI.
I was prepared to say a little bit about cyberdefence. I will write to the noble Baroness, Lady Smith, about that as I am reminded that time is short.
I know that the noble Earl will come to my somewhat critical comments about the lack of information on NATO from the Government, especially to parliamentarians, but I exempt him from some of that criticism because he is a shining example of what Ministers should be doing, given his early morning briefings of all-party groups of MPs. I should like to put that on the record but it does not exempt the rest of the Government from a frankly pathetic effort in getting over information about what is happening in terms of British-NATO relations.
I am grateful to the noble Lord for his comments but am sure that no one listening to his speech will have overlooked a powerful point he made about government messaging in general. I had intended not to comment too much on that theme but rather to go away and report back to him on what we can and should do across government to address his powerful points.
I should like to cover the issues raised by my noble friend Lord Jopling on shortcomings in NATO’s internal financial management. NATO bodies have been strengthening the areas of internal control and risk management, as identified by IBAN audits as areas of weakness to address. The Secretary-General has taken the opportunity of the functional review to do the same at the HQ, and the nations agreed the additional resources for him to do so in December 2018. The UK expects an enhanced internal control and risk management team to be established by autumn this year. Unfortunately, there is currently no consensus among allies on the implementation of the IBAN’s financial performance audit recommendations, which makes progress slow. However, I understand that NATO is looking to create a resource executive function—more or less a chief financial officer role—and is due to submit a recommendation on this matter to the North Atlantic Council this summer.
In my opening contribution to this debate, I quoted NATO’s current Secretary-General, Jens Stoltenberg. I will finish with the words of one of his illustrious predecessors. Dirk Stikker served at a tumultuous time more than half a century ago, with the Cold War at its height and the Cuban missile crisis taking the world to the brink of nuclear confrontation. He was also a great friend to the UK, having previously served many years as Dutch ambassador. Long after he stood down, he reflected in his memoirs on why NATO continues to play so vital a role in world affairs. He concluded:
“However great a nation, it never has all the pieces on the checkerboard. The checkerboard is vast. And the game without end.”
NATO’s achievements over the past 70 years have been remarkable. It has forged its member nations’ individual strengths into an alliance sufficiently formidable to deter all adversaries—those then and now who would impose their own norms of intolerance and authoritarianism on the free world. NATO has made an enormous difference—whether helping to end the Cold War, stopping terror or bringing reassurance to the vulnerable across the globe from Bosnia to Operation Ocean Shield in the Gulf of Aden. Sometimes this has meant conspicuous heroism on the battlefield or in the conflict zone, and sometimes quiet but tenacious work behind the scenes or under the oceans. As the right reverend Prelate so eloquently put it, NATO is not only a military alliance but a community of values—values that endure. Whatever form it has taken, NATO, as my noble friend Lord Attlee witnessed at first hand, has always done its work supremely well. So today we take the opportunity to pay tribute to the alliance and, in particular, we say thank you to all those men and women over the past seven decades who have served NATO with fortitude and honour. We owe them much. We owe them our peace.