Chapter 1 - Finance
                         
Table 1.20 NATO Countries Defence Expenditure 2003 - 2007
This table shows defence payments accrued within financial years 2003-2007 as extracted from the NATO website. Figures are based on the NATO definition of defence expenditure and are stated at 2000 prices and exchange rates.

The NATO definition of defence expenditure differs from national definitions so the figures quoted may diverge considerably from those given in national budgets. Expenditure is included for countries that provide Military Assistance. Expenditure is not included for countries receiving assistance. The financial year has been designated by the year which includes the highest number of months. For example year 2006 represents 2006/07 for Canada and the United Kingdom and 2005/06 for the United States (where the financial year for United States runs from October through to September).

Defence expenditures as of 2002 have been calculated on the basis of the revised NATO definition agreed in 2004. Most nations have reported defence expenditures according to this new definition. A few, however, continue to have difficulty meeting this requirement. Consequently figures for "NATO Total", "NATO Europe" and "North America" for 2003 are only indicative. Total figures for 2004 onwards are not calculated due to unavailability of exchange rate information, for 2000, for the countries new to the Alliance. Click here for more information on the new NATO definition.

The data in this table are outside the scope of National Statistics because they are provided by an organisation outside the UK Government Statistical Service.

2000 Prices and Exchange Rates
Country Currency Unit (Million) 2003   2004     2005     2006   Estimated 2007
NATO Total1,2 US Dollars 555 247   . .     . .     . .   . .
                         
NATO - Europe1,2,3 US Dollars 162 527   . .     . .     . .   . .
Belgium Euro 3 245 r 3 177 r   3 062 r   3 039   3 172
Bulgaria4 Levas *   821 r   850 r   835   899
Czech Republic Czech Koruny 48 197 r 45 245 r   46 672 r   47 147   45 872
Denmark Danish Kroner 19 457   19 387     18 421     20 180   18 635
Estonia4 Kroonis *   2 004 r   2 096 r   2 265   2 787
France5,6 Euro 38 248   39 505 r   38 699 r ll 38 650   38 673
Germany Euro 29 949 r 29 264 r   29 075 r   28 776   28 612
Greece Euro 3 863 r 4 209 r   4 604 r   4 787   5 043
Hungary Forint 254 096 r 240 663 r   241 330 r   216 823   192 678
Italy Euro 23 205   22 309     20 501 r   18 351   17 705
Latvia4 Lats *   81     90 r   123   145
Lithuania4 Litai *   908     842 r   903   977
Luxembourg Euro 164   173     175     175   221
Netherlands Euro 6 614   6 581     6 599     6 884   6 771
Norway Norwegian Kroner 29 488   29 957     27 645     27 496   27 368
Poland Zlotys 14 527 r 15 287 r   15 782 r   16 535   18 717
Portugal Euro 1 885 r 2 010 r   2 156 r   2 085   1 997
Romania4 Lei - New Lei7 *   20 661 095 r ll 2 123 r   2 111   2 293
Slovak Republic4 Slovak Koruny *   18 806 r   20 447 r   21 093   23 166
Slovenia4,8 Tolars - Euro *   74 335 r   76 369 r   87 979 ll 381
Spain Euro 8 461 r 8 660 r   8 552 r   9 016   9 708
Turkey 1000 Turkish Liras-
New Turkish Liras7		 5 035 733   4 486 689   ll 4 332     4 573   4 734
United Kingdom Pounds Sterling 24 325 r 24 053 r   26 970 r   27 725   26 415
                         
North America1,2 US Dollars 392 720   . .     . .     . .   . .
Canada Canadian Dollars 13 393 r 13 717 r   14 204 r   14 800   16 691
United States US Dollars 383 708   416 195 r   435 883 r   439 304   441 919
Source: NATO
1. France, Italy and Luxembourg figures are based on the old NATO definition of defence expenditure, whereas all the other countries are based on the new     definition agreed by the member states in 2004. The NATO totals include all countries' expenditure regardless of which definition was used.
2. In the absence of NATO data expressed at 2000 exchange rates and prices for the 'NATO', 'NATO Europe' and 'North America' totals, the individual country     totals (expressed in local currencies at 2000 prices) have been converted to US dollars using the 2000 exchange rate for each country supplied by the     Bank of England. Where Bank of England data were not available, comparable dollar exchange rates have been sourced from the Pacific Exchange Rate     Service (http://fx.sauder.ubc.ca/data.html).
3. Iceland is a member of the Alliance but has no armed forces.
4. Bulgaria, Estonia, Latvia, Lithuania, Romania, Slovak Republic, and Slovenia joined the Alliance in 2004.
5. France is a member of the Alliance but does not belong to the integrated military structure and does not participate in collective force planning. The defence     data relating to France are indicative only.
6. From 2006 onwards, following the introduction of new budgetary reform and financial law, defence expenditures are calculated with a new methodology.
7. From 2005 onwards, monetary values for Romania and Turkey are expressed in new currency units.
8. Slovenia joined the Euro in 2007, data up to this point are in Tolars.