1. EUROPEAN MODELS of MILITARY SERVICES HUNGARY Presented by: Dr. Gábor Szarka Head of Cabinet, MoD Hungary.

2. Topics to present Short description of the current system of military service, Assessment of the specific system of military service of the respective country, Description of fundamental political and strategic considerations, Assessment of social and economic side-effects, Consequences of a change in the system of military service on the respective defence budget, Main Lessons Learned with regard to the implementation process.

3. Topics to present Short description of the current system of military service, Assessment of the specific system of military service of the respective country, Description of fundamental political and strategic considerations, Assessment of social and economic side-effects, Consequences of a change in the system of military service on the respective defence budget, Main Lessons Learned with regard to the implementation process.

4. The Past 20 Years 1990 Conscripted Army; Warsaw Pact; Up to 150,000 persons; Conventional threats; National commitments. 2010 All-Voluntary Force; NATO; Around 25,000 persons; Asymmetric threats; International commitments.

5. PfP Accession Process Defence Review 2002- 03 25000 30000 40000 45000 35000 50000 60000 65000 55000 70000 75000 80000 85000 90000 95000 100000 105000 110000 115000 120000 125000 5000 10000 20000 15000 0 1998 1999 1994 1996 1997 2000 2001 2002 2003 2004 1992 1990 2005 52.000 37.000 31.000 125.000 H U N G A R I A N D E F E N C E F O R C E S 2006 2008 29.000 ~26.000 Defence Overview 2006 Professional Army Nov 2004 Strategic Review 1999 20092010 ~25.000 Cornerstones of the Process

6. Internal Composition of HDF

7. Topics to present Short description of the current system of military service, Assessment of the specific system of military service of the respective country, Description of fundamental political and strategic considerations, Assessment of social and economic side-effects, Consequences of a change in the system of military service on the respective defence budget, Main Lessons Learned with regard to the implementation process.

8. The starting point for transformation was a military force with a heritage of a different military culture, The economic transition of Hungary into a market economy has limited the financial means for HDF, Nevertheless adequacy to foreign and internal policy has always been at the core of transformation, NATO requirements, social expectations, and many other factors have influenced this process, New challenges in the region and the world. Considerations

9. High Commander of the HDF is the President of the Republic of Hungary, The HDF is under civil control: since 1990 all ministers have been civilians, The HDF is a force composed of professional and contracted personnel, Defence budget is at 1,17% of the GDP (1,46 b. USD) from which 42% goes for personal, 10% for missions, One of the main characteristics is to participate in international missions. Some Basic Characteristics

10. In recent years we can witness a radical expansion of professionalism even under contracted soldiers, Time spent in a foreign mission per soldier has increased, which includes experience even in combat, Planable career opportunities (at least in theory) with dual-use knowledge in many areas, Growing importance of foreign languages, and adequate physical fitness is important for promotion. New Service Culture

11. Topics to present Short description of the current system of military service, Assessment of the specific system of military service of the respective country, Description of fundamental political and strategic considerations, Assessment of social and economic side-effects, Consequences of a change in the system of military service on the respective defence budget, Main Lessons Learned with regard to the implementation process.

12. Adapting to the Demand A military force based on voluntary service with some expeditionary capabilities emerged around 2000, The aim was to design a force that is lighter in equipment and more mobile and deployable, This resulted in significant changes in the system of tasks, the structure and the operational characteristics, As a consequence, the system of recruiting, training and assigning personnel were also transformed.

13. Fulfilling Commitments Operational characteristics and structural principles fundamentally changed and required reorganisations, The HDF is on the road to become a well-trained and equipped force having expeditionary capabilities, It is important to find a balance between capabilities required for national and international commitments, For both high level of training, appropriate equipment and committed personnel is needed.

14. Still a Lot to Do All in all order of battle, organizational structure and strength of HDF should be in harmony, Internal proportion of personnel, armament and equipment should meet operational requirements, International security environment and the necessities of national defence should complement each other, Shaping the HDF has to take into account the material and financial resources available.

15. Topics to present Short description of the current system of military service, Assessment of the specific system of military service of the respective country, Description of fundamental political and strategic considerations, Assessment of social and economic side-effects, Consequences of a change in the system of military service on the respective defence budget, Main Lessons Learned with regard to the implementation process.

16. On Social Side-effects The conversion of the HDF fundamentally changed the characteristics and the architectural principles, The mechanisms of the voluntary-based system is still burdened with tensions, Social integration in terms of labor market competitiveness are still not consolidated, Organisations of the HDF struggle with lesser or greater shortfalls of personnel.

17. Establishing a Reserve The conversion process of the HDF to a fully-fledged professional force is a complex process, The introduction of new types of capabilities and the integration into the labour market go simultaneously, Important and neglected aspect of the conversion process was the establishment of a reserve force, With the new government in place this process has been accelerated and is in full swing.

18. On Economic Side-effects Having even a relatively small full professional force is not a cheap thing, Unfortunately the defence budget has not grown significantly in recent years, There is political will to increase step-by-step the defence budget in the legislature period, We have to create a better balance between the development and other expenditure, It is equally important to find a mechanism that helps allocate available resources more efficiently.

19. Topics to present Short description of the current system of military service, Assessment of the specific system of military service of the respective country, Description of fundamental political and strategic considerations, Assessment of social and economic side-effects, Consequences of a change in the system of military service on the respective defence budget, Main Lessons Learned with regard to the implementation process.

20. Budget Characteristics According to a cynical saying a budget is a backyard of any liberal democracy, NATO proposes 2% of the GDP defence budget for the member countries, Similar to other member nations the share of personnel expenses is too high in the Hungarian defence budget, This distortion makes it very difficult to make a balance between personnel and technical costs

21. Burdens on the Budget The HDF has become better educated, but higher education level generally stands for higher salaries, Not only force development, but also force reduction can be a costly business, Modernisation of weapons and equipments stands for additional expenses, Keeping international missions running is very costly, which might increase further in future.

22. Ways to Find Money Key for the future is to shape a force that can be financed in a more efficient way, This requires rethinking in terms of officer/enlisted ratio and the internal composition of rank groups, Constant monitoring of existing mechanisms of money spending and initiating improvements ASAP, When economic growth sets in the defence budget can be beefed up.

23. Topics to present Short description of the current system of military service, Assessment of the specific system of military service of the respective country, Description of fundamental political and strategic considerations, Assessment of social and economic side-effects, Cconsequences of a change in the system of military service on the respective defence budget, Main Lessons Learned with regard to the implementation process.

24. Hungary has just one military force, but there are many commitments, In order to maintain credibility a modular, multifunctional, and flexible HDF is needed, Key words are co-operation, interoperability, sustainability, and deployability, Both internal co-operation and home defence require new capabilities (medical, CIMIC, NBC, SOF), Running the HDF is a very costly business that demands much money and time (in some cases patience, as well), Lost the professionals by let them go, the military loose a lot of experience. Some Lessons

25. Smartness means that even a smaller force can cope with increased challenges, Instead of developing a multipurpose, all-weather, all theatre force the HDF should further specialize, Specialization should go hand in glove with lessening the current shortfall in personnel, Without the establishment of a functioning reserve the HDF can run dry in fulfilling commitments, Hungary can not afford to maintain a military with full range of capabilities, The system of the future could be one of the mutual completed capabilities among the small nations, Lessons Learned

26. THANK YOU FOR YOUR ATTENTION ! ATTENTION ! THANK YOU FOR YOUR ATTENTION ! ATTENTION !