Pentagon denies US wants 'cost + 50%' from allies for bases
Acting Pentagon chief Patrick Shanahan denied reports on 14 March 2019 that the US has a 'cost-plus-50%' formula for allies to pay for the US military presence on their soil.
Earlier this week, Bloomberg reported that President Donald Trump is pushing the formula as a basis for Germany, Japan and other allies to compensate Washington for US troops based in their countries. But Shanahan told the Senate Armed Services Committee that such reports were 'erroneous.'
'We won't do cost-plus-50%,' he said in a hearing. He said US partners should pay their 'fair share' when they can, but there was no such business-like formula. 'We're not going to run a business and we're not going to run a charity,' Shanahan said. 'Payment comes in lots of different forms. At the end of the day, people need to carry their fair share,' he said. 'Not everyone can contribute. It is not about cost-plus-50%.' Shanahan did not say whether Trump, who built a multibillion-dollar fortune in the real estate business, himself has advocated the formula.
Since coming into office, Trump has warned US allies, especially in NATO and East Asia, to pay more for the US presence. The White House has said that means NATO allies need to be spending 2% of their gross domestic product on defence.
More from Defence Notes
-
Spain unveils new multi-billion euro defence investment plan
The new plan outlined how Spain would reach 2% of its GDP spend on defence by 2025, with €1.9 billion earmarked for new equipment acquisition with several land, naval and air platforms disclosed to be replaced or upgraded.
-
New Zealand boosts defence spend to US$6.6 billion and vows increased closeness with Australia
This budget will be spent over the next four years and nearly doubles the country’s defence spending as part of GDP to 2%.
-
UK Chancellor commits £2 billion to make the country a “defence industrial superpower”
Rachel Reeves announced port upgrades, protected budgets for innovation and investment in novel technologies.
-
Avalon 2025: Australian defence budget meets the low expectations of show attendees
The Australian Budget was marked by tax cuts and a looming general election which led to little hope that there would be a substantial defence boost even with a big bill for nuclear submarines due.
-
Launch of Gilat Defense targets DoD market
The communications company Gilat launched its new Gilat Defense division at the Satellite 2025 expo, with future solutions aimed at US military customers.