Suchergebnisse

This paper tries to ascertain the economic benefits and costs of defence sector down-seizing in Germany, whether it were the result of official international commitments or of the reduction in the military budget. In the first category came reductions in forces and equipment under international treaties. As a result of reductions and transfer of forces up to 0,8% of employment dissappeared. This was taking place simultaneously with a reduction in equipment as the combined results of down-seizing of forces and the involuntary acquisition of equipment from the former GDR's army. The reduction in military spending, as part of a general redistribution of public expenditure, was the second reason for the shrinkage of the defence sector. But assessment of the impact of such reductions obviously depended on the type of expenditure concerned. Generally speaking, if the defence budgets of the last few years were compared, the changes in the relative importance of certain budget items would be seen to be "fiscal conversion" since, on the one hand, the type of expenditure had changed and, on the other hand, the overall volume of credits devoted to defence had fallen to the benefit of civilian expenditure. All in all, the positive macro-economic effects of this reallocation of budget resources came to less than 0,5% of GNP. (BICC-Hck)