# Increasing Slovenia's defence capacity The following are the Conclusions of the Strategic Defence Review. The Review was carried out at the Ministry of Defence in order to obtain the answers to questions on the current defence capacity of the Republic of Slovenia. It allows us to understand the situation and the reasons why national defen­ ce is not at the expected level. I believe that, thro­ ugh diligent work and thorough analyses, we have acquired a good basis for directing the further de­ velopment of the defence system, along with its ca­ pabilities, so that it will be able to function effective­ ly and in accordance with its mission. The activities that will have to be carried out in order to accom­ plish the set objectives have now been more preci­ sely defined. The fact is that Slovenia, together with other Europe­ an countries, is facing a complex and highly dyna­ mic security environment. There is instability in both its eastern and southern European neighbourho­ od. No part of Europe is safe from the operation of extremists. Hybrid operations require renewed and strengthened military and non-military defence me­ chanisms and the increased resilience of countries. This changed security environment has been reco­ gnized both at the level of NATO and the European Union. In response to new threats, the North Atlan­ tic Alliance opted for a strategy based on the deter­ rence of potential aggression; a strategy that would limit threats and protects against them, and establi­ sh the necessary responsiveness and preparedness to allow the successful defence of its members. The EU Global Strategy is focused on strengthening the mechanisms of mutual assistance for the provision of security and stability. The Ministry of Defence of the Republic of Slove­ nia recognizes the changed security situation, whi­ ch requires appropriate defence capabilities in or­ der to address future sources of threats and risks to national and international security. The Strategic Defence Review has shown that the main objectives of the further development of the defence system and defence capacity of the Re­ public of Slovenia are the provision of necessary defence capabilities, greater resilience of the sta­ te and society against security threats, the impro­ ved preparedness and sustainability of the Slo­ venian Armed Forces, and the pursuit of common objectives and commitments in the framework of the EU and NATO. Unfortunately, the transition from a mass to a predominantly professional army supple­ mented by the contract reserve has not allowed the defence system to achieve the necessary capabili­ ties and sustainability of the Slovenian Armed For­ ces to carry out the tasks arising from the national security documents. The Strategic Defence Review was conducted in the year in which Slovenia celebrated 25 years of inde­ pendence. This anniversary reminded us of the bro­ ad political and social unity and the importance of Slovenian security and defence forces, without whi­ ch autonomy would not exist. Now, 25 years after independence, Slovenia is not faced with such mile­ stone events, but decisions on the future of the nati­ onal security are no less important. The security of the country and its citizens is not self-evident and should not be taken for granted. We are aware that the efforts to reform the fundamental legal, strategic guidance and planning documents will require tho­ ughtfulness, maturity and selflessness in shaping the political and social consensus. The defence capacity of a country is not a separa­ te responsibility. The strength of the Alliance is ba­ sed on the strength of its individual members. Each member state is required to provide the necessary level of national defence and resilience. History te­ aches us that we must be able to provide our own defence. Our Allies will support us and provide for certain missing defence capabilities, but they will not conduct defence on our behalf. Awareness of the necessity of changing our appro­ ach in addressing the questions of national security and defence is of crucial importance in both politi­ cal and academic circles and the public. The Mini­ stry of Defence will continue to strive for a broad political and expert discussion of interests, objec­ tives and ambitions in the field of defence, and in particular of the further development of the Slove­ nian Armed Forces. As Minister of Defence, I am committed to ensuring that the Ministry of Defence continues to lead a pro­ fessional discussion within its powers, and to deve­ lop solutions with the goal of ensuring an effective and resilient defence system which will provide the necessary level of the country's defence. Andreja Katič _Minister_ Part 5 gives an overview of the objectives to be pursued in order to improve the defence of the state, and the main activities to be carried out to this end. Part 6 presents the conclusions on the status of the defence system and further steps in its development. ## Conclusions of the Strategic Defence Review 2016 **CONTENTS** Part 1 is devoted to understanding the pro­ cess of preparing the Strategic Defence Re­ view, with an emphasis on its objectives and purpose. Part 2 presents the current position, which is the basis for directing the operations of the defence system of the Republic of Slovenia, vernment of the Republic of Slovenia. Part 3 defines the international security envi­ ronment and the current and future security ri­ sks and threats. Part 4 presents the main findings on the de­ fence of the Republic of Slovenia and the re­ asons for the fact that its ability to address ----- In February 2016, the Government of the Re­ public of Slovenia adopted the Medium-Term Defence Programme of the Republic of Slo­ venia for 2016-2020. It instructed the Minist­ ry of Defence to conduct a Strategic Defence Review which would: 1) provide an asses­ sment of the state of defence of the Republic of Slovenia for the implementation of the tasks associated with the changing international se­ curity environment, 2) assess the effectiveness of the defence system, and 3) propose mea­ sures to improve the situation. The Ministry of Defence carried out a com­ prehensive defence review of its powers. The decision of the Government of the Republic of Slovenia will dictate the reform of the strate­ gic assessments and of the development and guidance documents which determine the im­ plementation of national interests and objecti­ ves in the field of defence. The main objective of the Strategic Defence Review is to identify the measures and activi­ ties required to ensure the readiness and de­ fence capability of the Republic of Slovenia, in accordance with the national level of de­ fence ambitions set out in the Defence Strate­ gy of the Republic of Slovenia (Government of the Republic of Slovenia, no. 80000-1/4 of 7th December 2012) and the Resolution on the General Long-Term Development and Equipping Programme of the Slovenian Ar­ med Forces up to 2025 (Official Gazette of the Republic of Slovenia, no. 99/10). The Strategic Defence Review gives answers to the question of whether the organization and functioning of the defence system and de­ fence capabilities of the Republic of Slovenia ensure the responsiveness and ability of the state to cope with current and possible future security threats and risks. The achieved level of development of the defence system and its capabilities is assessed in the light of the cur­ rent national defence ambitions in connection with its international commitments and decla­ en the planned and actual state of the defen­ ce capabilities of the Republic of Slovenia are identified. The Strategic Defence Review is the basis for the further development of the defence system so that it can function effectively in accordan­ ce with its mission. The findings and proposed measures are the basic planning assumptions and bases for the completion of the strategic and development documents pertaining to national security. The functioning of the defence system depen­ ds on the coordinated operation of all par­ takers of the national security system, so the realization of the measures arising from the Strategic Defence Review will require a com­ prehensive interdepartmental approach. Some measures will require the cooperation of the National Assembly. The conclusions of the Strategic Defence Re­ view 2016 are a reflection of the functioning of the defence system since the last Strategic Defence Review in 2009, and since the be­ ginning of the negative consequences of the financial and economic crisis from 2010 up to today. **2 BASIC PREMISES** The basic premises for the implementation of the Strategic Defence Review are the adop­ ted national interests and objectives in the fi­ eld of defence, and the purpose and tasks of the defence system and defence policy which provide for the implementation of these basic premises. These premises arise from the Reso­ lution on the National Security Strategy of the Republic of Slovenia (Official Gazette of the RS, no. 27/10) and the Defence Strategy of the Republic of Slovenia (Government of the RS, no. 80000-1/4 of 7th December 2012). National interests and objectives The long-standing and vitally important intere­ sts of the Republic of Slovenia are (1) the pre­ servation of the independence, sovereignty preservation of the national identity, culture and autonomy of the Slovenian nation, both within the internationally-recognized borders of the Republic of Slovenia, and abroad and throughout the world. The strategic interests of the Republic of Slovenia: (1) Recognition of and respect for the integri­ ty of the country's internationally-recognized borders and the national territory, including the contact of Slovenia's territorial waters with the open sea; (2) The functioning of the democratic parlia­ mentary political system; (3) Respect for human rights and fundamen­ tal freedoms; (4) Strengthening of the rule of law and the social state; (5) The welfare of the people and the compre­ hensive development of society; (6) Protection of life and a high level of all forms of security for the people; (7) Protection of the rights and development of indigenous Slovenian national minorities in neighbouring countries; (8) Peace, security and stability in the world; (9) Preservation of the environment and na­ tural resources of the Republic of Slovenia. The fundamental national security objectives are: (1) a high level of security based on pro­ per prevention, organization, training level and preparedness of all capabilities required for the efficient and timely detection of and response to modern sources of threats and se­ curity risks, and (2) peacekeeping and streng­ thening of security and stability within the in­ ternational community. The Republic of Slovenia pursues its vital and strategic interests autonomously, through in­ tense bilateral cooperation and an active role in the region, and through the United Nations Organization, the European Union, NATO and other international organizations. ----- Essential interests in the field of defence are: (1) The preservation of the independence, so­ vereignty and territorial integrity of the state, and the integrity of the country's in­ ternationally-recognized borders and the national territory; (2) An appropriate level of the country's de­ fence capabilities and their readiness; (3) The implementation of the common de­ fence interests and adopted international obligations of the state in defence and mi­ litary fields within NATO and the Europe­ an Union; (4) Peace, security and stability in the world, with a focus on South-east Europe. The Republic of Slovenia pursues its interests in the field of defence in the context of six defence objectives: (1) Provision of the country's defence capabilities; (2) Effective deterrence of military and other modern threats, and the defence of the in­ dependence, inviolability and territorial integrity of the state; (3) Continuous operation of the defence sy­ stem and other social subsystems; (4) Strengthening of bilateral and multilate­ ral cooperation in defence and military fields; (5) Participation in the efforts of the internati­ onal community to establish and maintain peace and to strengthen security and sta­ bility in the world; (6) Increasing the awareness in society of the importance of the national defen­ ce system, and strengthening its reputati­ on among the citizens of the Republic of Slovenia. **Defence policy** The defence policy of the Republic of Slove­ nia, in accordance with the Resolution on Na­ tional Security Strategy, is aimed at ensuring the country's defence capabilities as required for the provision of national defence within the system of collective defence and securi­ ty. The basic guidelines are the enhancement of the quality of defence capabilities at the expense of their quantity, and taking a rea­ sonable and proportionate share of the bur­ den of challenges to collective defence and security. The purpose of the Republic of Slovenia's de­ fence policy based on the specified defen­ ce interests of the state and the assessment of threats and risks to national security whi­ ch require a response of the defence system, is the use of optimal ways and means to achi­ eve these objectives in the field of defence. Key points of the defence policy: (1) Ensuring the defence of the Republic of Slovenia through inclusion in the international environment, with particular emphasis on EU and NATO membership as well as on an equi­ table contribution to and assumption of bur­ dens and responsibilities in these structures; (2) Provision of national defence capabilities within the system of collective defence; (3) Active participation in the operations of multinational structures, which are primarily At its session on 23 December 2016, the Government of Slovenia took note of the Conclusions of the 2016 Strategic Defence Review. It recognized the fact that the development of defence capabiliti­ es has stalled since 2010, and that the state now has limited capacity for dealing with future threats to national security. In order to enhance the country’s defence capacity and resilience, the Gover­ nment tasked the Ministry of Defence and other relevant institutions to adopt concrete measures to overcome the current situation, taking into account the changed international security environment. The Conclusions of the Strategic Defence Review emphasize the need for nominal growth in defen­ ce expenditure in order to provide for the Republic of Slovenia’s defence capacity. Based on the Government’s decisions, and in consideration of the adopted programme priorities and the fiscal framework for the sector’s budget, preparation of future defence budget proposals for the next mid­ -term period will have to take into account the conditions to provide for a gradual nominal growth from EUR 20 million to 30 million annually. The main goal is to gradually come close to the accepted obligation within NATO with regard to the target level of defence expenditure, with an interim goal of 1.2% of GDP in the next ten years. **Defence system** The defence system of the Republic of Slo­ venia is part of the national security system, which has the task of pursuing national goals in the field of defence. The defence strate­ gy defines the defence system as a series of political, regulatory, organizational, military, personnel, material and financial, intelligen­ ce and security, information and communi­ cation, development and research, educati­ onal and other activities organized by the state in order to provide effective defence. The purpose of the defence system of the Re­ public of Slovenia is to ensure the defence capabilities of the state to enforce its intere­ sts and achieve its objectives in the field of defence, in order to protect the fundamental values of Slovenian society. The fundamen­ tal basis of the country's ability to defend it­ self lies in its defence capabilities. The defence system is composed of the Slo­ venian Armed Forces, as the promoter of mi­ litary defence and the development of milita­ ry capabilities, and of non-military elements of the defence system, which formulate and implement the defence policy, provide con­ (4) Ensuring adequate defence prepare­ dness to respond to current and future se­ curity threats, including the appropriate po­ sture, structure, equipment and qualification of the Slovenian Armed Forces and civilian capabilities; (5) Ensuring the greatest possible protection of the Slovenian Armed Forces' members and ensuring the basis of achieving an appropria­ te level of the army's interoperability with the armies of the EU and NATO member states; (6) Intentional and selective equipping and training of the military to operate in the Al­ liance in a variety of circumstances in terms of combat intensity as well as geographic and climatic conditions, the aim being to en­ sure the deployability of at least 50% of the land forces and to maintain at least 10% of forces in a high level of readiness in the na­ tional territory or in multinational operations and missions; (7) Maintaining the level of preparedness of defence capabilities to carry out all the prescribed essential tasks, which should not be reduced below the minimum of the inter­ nationally comparable military standards ----- allied forces, and carry out preparations and implement measures for the defence of the country and for the operation of the de­ fence system in crisis situations. Other natio­ nal authorities, local community bodies and civil society organizations which are of par­ ticular importance for defence are also inclu­ ded in the defence system through the imple­ mentation of their activities which contribute to the defence of the country. **3 SECURITY ENVIRONMENT,** **THREATS AND RISKS** **International security environment** The international security environment, of whi­ ch the Republic of Slovenia is a part, is com­ plex, interdependent and subject to many sud­ den and unpredictable changes with a global dimension. This results in greatly increased and changing security threats and risks. The Republic of Slovenia, together with its al­ lies, recognizes the belt of instability surroun­ ding the EU and NATO. The EU and the Alli­ ance are facing a range of security challenges which occur mainly in the east and south. They are created by state and non-state actors using conventional and unconventional forces and resources. Particularly worrying is the increa­ singly active re-use of military forces and reso­ urces on the outskirts of the EU and in Europe (e.g. Ukraine). Enhanced military threats are reflected in the building of tension in crisis areas leading to ar­ med conflicts; in the acceleration of the arms race between regional competitors and in the consequent demonstration of power; in the glo­ bal redistribution of power to control resources and supply options; in the protection of mem­ bers of national groups in other countries by armed forces; in the geostrategic redistribution of the influence of important actors in the inter­ national community; and in the threats arising from deviations from the agreement on the sco­ pe of conventional forces and the reduction of nuclear weapons. In the future, the changing international secu­ rity environment will, in addition to the traditi­ onal (conventional) military threats which will be reflected in the building of tensions, new cri­ sis areas and wars, and unconventional forms of military operation (including hybrid opera­ tions), be mainly affected by climate change, the scarcity of natural and other strategic reso­ urces, the unfavourable global demographic, financial, economic and social changes, the uncontrolled trade in sensitive materials and services, the deepening gap between the rich and the poor, and the effects of globalization. The changed security environment requires greater preparedness and responsiveness of the entire defence system, mainly through fa­ ster decision-making and response to crises. It requires the high flexibility of military capa­ bilities that should be able to respond, within their competence, to the unconventional forms of threat, as well as to traditional military forms of threat. Changes in the international security enviro­ nment are reflected in the strengthening of NATO's deterrent posture and a higher level of the readiness of forces, and in the enhan­ defence system. **Security threats and risks** Due to its geostrategic position and proximi­ ty to crisis areas, together with the still uncer­ tain political situation in the Western Balkans, the Republic of Slovenia is exposed to vario­ us types of security threats and risks which co­ uld, at least indirectly, threaten its national se­ curity. The security of the Republic of Slovenia is also affected by the dynamics of the situati­ on within the European Union, in which some countries are faced with a growing threat of terrorism. Due to its involvement in the wider international political and security structures, the Republic of Slovenia is, from the perspec­ tive of a potential threat to its security, also su­ sceptible to developments in other regions of the world (the Middle East, North and Sub­ -Saharan Africa). As a member of the EU and NATO, the Re­ public of Slovenia is, in addition to unconven­ tional threats, indirectly faced with conventi­ onal forms of threat. Possible forms of threat include military threats, terrorism, hybrid thre­ ats, cyber threats, mass migrations, organi­ zed crime and the activities of foreign intelli­ gence services. decisive response of all actors within the enti­ re national security system, with crucial politi­ cal support to adaptations of the system in the normative, organizational, material, technical and human resources fields. **4 DEFENCE OF THE COUNTRY** The primary purposes of defence are to de­ ter attacks and defend the independence, in­ violability and integrity of the state. Natio­ nal defence in a broader sense includes the national contribution to the deterrence of at­ tacks on the Alliance and to the defence of its members. **Defence ambitions** Defence ambitions result from the national political guidance and strategies, as well as the adopted political guidance and strategies in NATO and the EU, and are shaped into a common view by all member states and agre­ ed to by the Republic of Slovenia. NATO com­ plements that part of Slovenian defence ca­ pabilities that the Republic of Slovenia does not develop. The level of ambition in the setting up of the national defence is a sovereign decision of each state, but each credible member of the Alliance must establish its own defence The Strategic Defence Review is one of three processes which are taking place simultaneously over a two-year period and which relate to the review of the national security system of the Republic of Slovenia. They all address a comprehensive review of national interests, goals, ambitions and the normative basis in the area of defence. Preparation of new defence legislation and the NATO de­ fence planning process are taking place in parallel to the Strategic Defence Review. Step 1 of the Strategic Defence Review provided a detailed review of the status and efficiency of the Defence System of the Republic of Slovenia, as well as the implementation of interests and go­ als in the area of defence. Step 2 identified the actions and measures required to provide for the further development of the Defence System, particularly from the perspective of the required de­ fence capability and resilience of Slovenia in relation to future security threats. Step 3 was inten­ ded for the endorsement of conclusions and recommendations by the Government of the Republic of Slovenia, which adopted several decisions for the achievement of the main objectives. Step 4 is intended for the adoption of the revised fundamental political guidance and strategic planning do­ cuments that define national security. In spring 2016, Phase 5 of the NATO defence planning process was completed, which provided a defence planning and capability review for Slovenia. It also provided the status of the implementa­ tion of the assigned capability targets and the implementation of the common goals agreed in the Alliance. The process is currently in Phase 3, which is intended for the apportionment of a new set of capability targets for the next long-term period. The preparation and coordination of a new Defence Act and the Service in the Slovenian Ar­ med Forces Act took place throughout 2016. Both will be adopted by Parliament in 2017. They will provide conditions for the implementation of certain measures derived from the Strategic ----- (1) The deterrence of attacks on the state, and defence of its independence, inviolability and integrity until the activation of the system of collective defence; (2) The acceptance of joint operations and al­ lied military capabilities in its territory; (3) The taking of a fair share of the burden and risks of crisis response and collective de­ fence outside the national territory; (4) The independence, inviolability and in­ tegrity of the state, and the continuity of na­ tional authority after the withdrawal of al­ lied military capabilities from its territory. The defence ambitions of the Republic of Slo­ venia formally include the organization of defence forces to the level of brigade battle groups to carry out combat operations in the national territory with an appropriate level of sustainability of forces. An operation of high intensity within the Alliance formally includes a unit at the level of a battalion battle group on a one-year rotation, and simultaneous par­ ticipation in a low-intensity operation in the re­ gion with a company-level unit. The planned target size for the Slovenian Ar­ med Forces is 10,000 members by 2018. This number is expected to increase by no more than 25,000 members in the event of a sharp deterioration in the security situation, which is consistent with the Military Strategic Reserve Doctrine of the Republic of Slovenia. **Defence capacity** The defence of the Republic of Slovenia is ba­ sed on the country's own defence capabilities and the capabilities of the Alliance in the con­ text of the system of collective defence. The basic building blocks of national defen­ ce are: (1) The national defence capabilities; (2) The resilience of the state and society to potential security threats; (3) The preparedness and sustainability of the Slovenian Armed Forces; (4) The defence and security guarantees of the EU and NATO. The analysis conducted in line with the objec­ tives of the Strategic Defence Review showed a gap between the actual and projected level of defence capabilities of the Republic of Slo­ venia. The level is set at the basis of the cur­ rent assessments, policies and objectives of the National Security Strategy, the Resolution on the General Long-Term Development and Equipping Programme of the Slovenian Ar­ med Forces up to 2025, the Defence Strate­ gy of the Republic of Slovenia, and the chan­ ges in the security environment in the EU's neighbourhood. The lower than planned level of defence ca­ pabilities is reflected in the limited capacity to operate in high-intensity operations and in the lack of specific mechanisms to raise the re­ silience of the state to new forms of threats. There are limited organizational and structu­ ral capabilities of the defence system to facili­ tate the transition to operating in the most de­ manding and unpredictable situations. It may be concluded that, in terms of possible future security threats, the future requirements res to improve the country's resilience to futu­ re threats. It will be necessary to prepare a national assessment of long-term security thre­ ats and risks by 2030 to clarify the answer to the necessary long-term defence capabilities and the level of preparedness of the defence system. This assessment will be an assessment by the EU and NATO, supplemented by nati­ onal views. The defence system of the Republic of Slove­ nia and its defence planning provide a tran­ sition to the response to a crisis in the field of defence and a gradual transition to war. The operation of the defence system is based on a normative foundation, strategic political gu­ idance, and the strategies and doctrines, whi­ ch must be reviewed and revised, taking into account the EU and NATO, in the light of the changed geostrategic security environment and the consequential changes in the policy guidelines and strategic documents. In recent years, the Slovenian Armed Forces has developed into an army whose knowled­ ge, skills and processes are complementary to the Alliance and which operates success­ fully in multinational operations and missions. It ensures the readiness of forces to deploy un­ der the EU and NATO, and the planned le­ vel of preparedness to respond to natural and other disasters and to participate in protecti­ on and rescue activities. It is also prepared, within the framework of its powers and where necessary, to be included in the implementati­ on of security tasks. The Slovenian Armed Forces has limited re­ sources to achieve its mission and the tasks assigned both within and outside the natio­ nal territory to the extent required across the full spectrum of combat operations. The cur­ rent human and material resources and their level of sustainability hinder its operations in the most demanding combat situations, so its performance is linked to a higher risk with re­ gard to the effective implementation of the as­ signed tasks and possible casualties. The operation and development of the Slo­ venian Armed Forces since 2009 has been negatively affected by the failure to moderni­ ze the Slovenian Armed Forces, which would enable further development, and by instabili­ ty in the military leadership, the ageing of the were carried out during the transition from a mass to a predominantly professional army. This applies to processes within the Sloveni­ an Armed Forces and the Ministry of Defen­ ce, as well as at the level of the entire society, which is why the sustainability of the Slove­ nian Armed Forces to carry out its missions and tasks has not been achieved. Experience has shown that there are systemic weaknes­ ses in the provision of an adequate number of sufficiently high quality human resources in the active and reserve structure, and that the­ re is a risk that, in case of need, the increa­ sed size and structure of military capabilities of the Slovenian Armed Forces would not be achieved as is required by the Military Stra­ tegic Reserve Doctrine of the Republic of Slo­ venia. There is also a risk that a protracted or extremely grave crisis situation and/or milita­ ry threat would not allow the country to incre­ ase its defence capabilities in time and ensu­ re its sustainability. The number of active component members of the Slovenian Armed Forces has been decli­ ning rapidly in recent years, and is now al­ most 700 members short of the planned num­ ber. The reasons for this trend are mainly found in the reduction in defence spending and consequently the inability to implement all the measures set out in the Service in the Slovenian Armed Forces Act. Changes in the retirement of military personnel have distur­ bed the career planning and entry and exit to and from the Slovenian Armed Forces. The size of the contract reserve component has decreased in recent years due to the sharp reduction in the funds earmarked for the Slovenian Armed Forces. The number of members has not increased in any substantial way, despite the objectives set out in the Me­ dium-Term Defence Programme 2016-2020. This is the result of a reduced interest in ser­ ving in the contract reserve, and the fact that the human resource base for the manning of the contract reserve has been greatly redu­ ced due to the past abolition of compulsory military service. In recent years, the voluntary military service has been systematically dec­ reased due to budget cuts, and remains sym­ bolic despite several additional measures by the Ministry of Defence. ----- ral Long-Term Development and Equipping Programme of the Slovenian Armed Forces up to 2025 and NATO's capability goals 2013 for the Republic of Slovenia, which is the consequence of a multi-annual reduction in defence spending. The purchase of wea­ pons and key military equipment will only be implemented to a very limited extent accor­ ding to the Medium-Term Defence Program­ me 2016-2020. Establishment of the most important target ca­ pability and development challenge of the Slovenian Armed Forces, namely the medium battalion battle group, will, as a consequence of the current situation and the lack of financi­ al resources, only be able to start in the next medium-term period after 2020, which is late in relation to the changes in the security en­ vironment and the adopted policy guidelines within the Alliance. In the light of the experi­ ence of and recommendations by the Allies, the process of establishing such a capability, having adequate funding, takes five years, so it can be assumed that Slovenia will be at le­ ast ten years late. It is also important to under­ stand that Slovenia will have to establish an additional medium battalion battle group in the next scheduled cycle, due to the changed political and security situation on the outskirts of Europe. This means that the so-far unfulfil­ led commitment will become an even greater challenge in the medium term of six years. The implementation of governmental measu­ res in the financial crisis has been reflected in the constant and disproportionate cuts to the defence budget. A total of EUR 943 mil­ lion less than planned was given to the de­ fence system during the period 2010-2015, in accordance with the adopted medium-term defence programmes and defence budgets. The current medium-term financial projection will not ensure the necessary growth in defen­ ce expenditure due to the balancing of public finances. The planned projection of financi­ al resources does not reflect the commitments made to NATO on the progressive raising of defence expenditure to a level of two percent, which should begin immediately, with the cor­ responding annual growth, and enable the and the achievement of their performance tar­ gets. By 2020, the Republic of Slovenia will not be able to make any substantial positive changes in the establishment of defence ca­ pabilities for its own defence or for participati­ on in collective defence in the event of military threats, with regard to the planned dynamics of increasing the defence budget in the con­ text of the medium-term defence programme. The European Union and NATO provide the Republic of Slovenia with an environment in which it can develop and implement its securi­ ty, economic, cultural and other interests. As a member of both organizations, Slovenia sho­ uld contribute its share to the development of joint military capabilities and operations. This share should be proportional to its size and economic power. However, the Republic of Slovenia dedicates a smaller share of social resources to defence than most members of both organizations, and it even dedicates the least resources to equipment investment. This means that it does not carry a fair share of the burden and the relative risk in relation to the common objectives of the Alliance. Based on the findings of the Strategic Defen­ ce Review, it can be concluded that the main reasons for the fact that the preparedness and ability of the Republic of Slovenia to address future security risks and threats are not at the planned level are: (1) The reduction in the funding for defence; (2) Incomplete implementation of the policy guidelines, strategies and doctrines, of whi­ ch a significant part is dependent on materi­ al resources; (3) The unfinished project of a professional army supplemented by the contract reserve; (4) Formal incompletion and substantive non­ -implementation of the Strategic Defence Re­ view of 2009. The Strategic Defence Review has shown the potential to improve the functioning of the Mi­ nistry of Defence, particularly from the stan­ dpoint of a rational organization and raising the quality of processes. Some progress was made in the past in the procedural and orga­ nizational integration of the military and non­ -military parts of the Ministry, but not all the processes, as well as the more efficient horizontal coordination, were met. The Revi­ ew also pointed to the unfavourable age and status structure of the administrative part of the Ministry of Defence. **5 STRENGTHENING DEFENCE** **CAPABILITY AND RESILIENCE** Efforts to improve the country’s defence should be directed towards: (1) Developing combat capabilities; (2) Ensuring the conditions necessary to raise the level of preparedness and sustainabili­ ty of the Slovenian Armed Forces; (3) Establishing mechanisms for a rapid incre­ ase in defence forces in the event of a di­ rect military threat to the country; (4) Enhancing the resilience of the state to contemporary and future security threats. In doing so, the essential factors are: (1) A significant increase in the defence bud­ get with predictable dynamics; (2) Consistency in exercising its own com­ mitments, decisions and policies arising from the adopted strategic and planning documents; (3) A comprehensive approach to the provisi­ on of systemic conditions for the operati­ on of a professional army; (4) The ability to respond to new security thre­ ats and challenges. The main objectives of the further deve­ lopment of the defence system and defen­ ce capabilities of the Republic of Slove­ nia, which arise from the findings of the Strategic Defence Review, are: (1) Ensuring the necessary defence capabilities; (2) Enhanced resilience of the state and soci­ ety to security threats; (3) Improving the preparedness and sustaina­ bility of the Slovenian Armed Forces; (4) Pursuit of the common goals and commit­ ments made in the context of the EU and NATO. **Objective 1: Ensuring the** **necessary defence capabilities** The development of defence capabilities sho­ uld focus on increasing the national defence capabilities for responding to military threats, and on the potential provision of the required share of capabilities in order to participate in high-intensity operations in the context of col­ lective defence. The main development goal in the medium term 2018-2023 is the formation of two me­ dium battalion battle groups. To ensure the possibility of a rapid increase in defence forces in the event of an extreme de­ terioration in the security situation, it is neces­ sary to start setting up mechanisms and crea­ ting a structural basis to ensure the structural, organizational and personnel conditions for the successful implementation of the Milita­ ry Strategic Reserve Doctrine. To this end, an appropriate scope of material resources must be provided for the implementation of tasks to increase the number of military personnel to an additional 25,000 members. ----- **resilience of the state and** **society to security threats** It is essential to implement national measures to strengthen the resilience of the state and society to contemporary and future security threats, with emphasis on the continuous ope­ ration of government at all levels; the conti­ nuity of public infrastructure and services; the uninterrupted provision of energy; the in­ formation and communication support and other resources important for the functioning of the state; the security and the lives of citi­ zens; and the protection of critical infrastructu­ re. It is also necessary to improve the mecha­ nisms to enhance cybersecurity and increase resilience against hybrid threats. It is important to ensure continuous monito­ ring and upgrading of crisis response measu­ res in the field of defence, and their elabora­ tion and coordinated operation in the context of defence planning, which will significantly influence the timely and effective response to threats. It is essential to define in detail the tasks and responsibilities of the Slovenian Armed Forces to protect the critical infrastructure and assist the national authorities in times of crisis and war, especially in cases of extreme or/and long-term security destabilization of the inter­ national security environment. The crisis management system and the state's ability to respond to various security threats should be periodically checked through nati­ onal crisis management exercises which bring together high-level decision makers in the na­ tional security system, in particular the Gover­ nment of the Republic of Slovenia and the Na­ tional Security Council. Even in peacetime conditions, it is important to increase activities to transfer defence and military knowledge and skills to the popula­ tion fit for military service who are willing to voluntarily participate in such education and training. Provision should be made for the possibility of exercising the rights of citizens to organize themselves in a state of war. **preparedness and sustainability** **of the Slovenian Armed Forces** Short-term measures to improve the prepare­ dness and sustainability of the Slovenian Ar­ med Forces should be primarily focused on ensuring the conditions to improve the man­ ning situation in both size and personnel struc­ ture; on education and training; on the opera­ bility of the key equipment and the equipment of individuals; on the modernization of the communication and information system; and on ensuring adequate operational and stra­ tegic stocks of ammunition and material resources. Plans should be prepared to ensure readiness for the deployment of forces upon the activa­ tion of Article 5 of the North Atlantic Treaty, and to ensure the appropriate quantities of ammunition and equipment for rapid respon­ se in high-intensity operations. Conditions should be provided to increase the participation of the Slovenian Armed For­ ces in NATO exercises, which would increase their ability to operate in high-intensity opera­ tions and support the implementation of the NATO Readiness Action Plan. In the long term, it is necessary to ensure stabi­ lity in the provision of sufficient financial reso­ urces for equipping, operations, training and exercises, maintenance, and the provision of stocks of ammunition and material resources. It is important to find suitable solutions for the territorial organization of the Slovenian Ar­ med Forces and its greater involvement in and connection to the local environment throug­ hout the territory of the Republic of Slovenia. **Objective 4: Achieving common** **goals and commitments** **in the framework of the** **European Union and NATO** In accordance with the provisions of interna­ tional and national law it is necessary to su­ pport the military, political and other efforts of the EU and NATO in the provision of secu­ rity guarantees to member states, and of all efforts aimed at stabilizing the Western Bal­ ties should contribute to the common defen­ ce and security of the territory, population and values, through the implementation of the NATO Strategic Concept, particularly in rela­ tion to its basic tasks (collective defence, crisis management and cooperative security). It is essential to contribute national capabili­ ties to support the implementation of the EU Global Strategy on Foreign and Security Poli­ cy, in order to support the common interests of peace, security, prosperity, democracy and a rule-based world order. It is also necessary to defend the cooperation and synchronization of efforts and development between the EU and NATO, and to avoid the duplication of structures and capabilities. In the context of the EU's priorities (security of the EU, national and social resilience in the south and east of the EU, an integrated appro­ ach to conflicts and crises, cooperative regio­ nal arrangements and global management), efforts should be directed towards: – Implementing commitments to mutual assi­ stance and solidarity, with a focus on ad­ dressing security challenges such as ter­ rorism, cyber threats, energy security and organized crime, and to supporting the management of external borders; – Supporting joint efforts and closer coope­ ration in the field of defence for the deve­ lopment of defence capabilities; – Supporting closer cooperation with NATO, especially in the area of operati­ ons in the Mediterranean and North and Sub-Saharan Africa, and to strengthening the mechanisms for dealing with hybrid threats; – Supporting joint efforts to strengthen the security structures in the southern neigh­ bourhood, with a focus on South-east Eu­ rope, where efforts should be made for a coordinated approach with NATO; – Strengthening cooperation and solidari­ ty in the fight against terrorism in the EU and mutual assistance for faster recovery of member states in the event of an attack; – Strengthening national technological ca­ ----- **and other conditions** 1. Personnel and organizational measu­ res at the Ministry of Defence Efforts in the development of human resour­ ces in the Slovenian Armed Forces should be directed to the planning of career paths, providing high-quality and stable leadership, education, and improving the status of active component members. Measures to ensure the necessary human re­ sources should focus on the creation of con­ ditions for improving the preparedness and sustainability of the Slovenian Armed For­ ces and defence capabilities, in accordance with the target number of 10,000 members. Human resources should dynamically follow changes in the security situation and threats in the world, as well as the defence needs and ambitions of the Republic of Slovenia, both in terms of their number and quality. It is important to significantly increase the pos­ sibilities of an increased scope of volunta­ ry military service. Possibilities must be esta­ blished for voluntary participation in various forms of the acquisition of knowledge and skills to defend the country. Measures need to be carried out to increa­ se interest in employment in the armed forces and to retain and stop the decline in the per­ sonnel structure of the peacetime and reserve structure of the Slovenian Armed Forces. It is also necessary to suggest appropriate sy­ stem solutions at the level of the entire public administration, and amendments to the labour regulations that will support the development of a professional army, supplemented by vari­ ous forms of the reserve component. Due to the increased combat characteristi­ cs, it is important to rejuvenate the personnel structure of the Slovenian Armed Forces and raise the level of the physical fitness of soldi­ ers. Arrangements should be proposed go­ verning the retirement of military personnel and ensuring the predictability of leaving the military organization. The status of soldiers needs to be improved through both tangible and intangible measu­ res, especially in terms of the implementation Efforts in the context of implementing NATO's enhanced defence and deterrence posture, achieved by strengthening the collective de­ fence and defence capabilities and by increa­ sing the resilience of countries and civil prepa­ redness, should be directed towards: – Continuous and comprehensive streng­ thening of the level of preparedness, in­ teroperability and responsiveness of the defence system and the Slovenian Armed Forces, which directly supports the com­ mon enhanced defence and deterrence posture; – An appropriate national contribution to the renewed NATO Response Force, whi­ ch, in cooperation with the lead Allied nation, will signify a proportionate and credible share of the joint forces of the Alliance; – Joint contribution to the security assu­ rance measures, which will demonstrate Slovenia's commitment to the fundamen­ tals of the North Atlantic Treaty; to deter­ rence and the collective defence of the Allies, with a focus on providing the ca­ pabilities of the Slovenian Armed Forces to NATO's Rapid Response Forces; and to participation in exercises and milita­ ry operations, which will ensure prepare­ dness to respond to threats coming from the south and south-east, including the pe­ riodic deployment of units in the context of the enhanced forward presence of the Alliance in the East. This should take into account the principles of military necessi­ ty, financial capacity and the sustainabili­ ty of forces; – Recognizing cyberspace as a new doma­ in of operation of the Alliance and imple­ menting the commitment to cyber defence through the development of national pro­ cedures and capabilities for an effective response to cyber threats and defence of national infrastructure and networks; – Ensuring conditions for the development of national defence capabilities in the context of the NATO Capability Targets for Slovenia, including the new ones whi­ sential to improve the system of financial re­ wards for contract reserve members and members of the voluntary military service. It is also important to reinforce the procedural and organizational measures for a more effi­ cient structure and performance of the defen­ ce system, which will be based on greater in­ tegration of the civil and military dimensions. Moreover, it is necessary to implement chan­ ges in the organization and formation struc­ ture of the Slovenian Armed Forces and the command and control system. 2. Material resources Activities to commence a new cycle of mo­ dernization should be started immediately to enable the purchase of combat vehicles for the medium battalion battle group, which in­ cludes the modernization of other capabilities of the Slovenian Armed Forces that are part of this group (CBRN, engineer support, logi­ stic support, fire support, air defence and re­ connaissance capabilities). In order to facilitate the establishment of es­ sential combat capabilities and to boost the modernization of the Slovenian Armed For­ ces, as many purchases as possible should be made directly through intergovernmental agreements and joint purchases through the EU and NATO agencies. Possibilities need to be considered for renting key equipment. It is important to continue the sale of per­ manently discarded weapon systems and equipment which would no longer be used to equip the military strategic reserve even in a changed security situation. The acquired fun­ ding should be directed to the modernizati­ on of the main equipment of the Slovenian Ar­ med Forces. 3. Financial resources It is important to deliver on the commitment to defence spending by gradually increasing the defence budget to approximately 2% of GDP over the long term until 2027, and by focusing on the proportion of investments to the extent of 20% of the defence budget for the priority capabilities agreed within the Alli­ ance. The medium-term projection of defence spending needs to be corrected. The nominal growth of the defence budget should reach EUR 30-45 million annually in order to economically maintain the already establis­ hed defence capabilities of the Republic of Slovenia, and to establish the priority capabi­ lities which the Republic of Slovenia needs in order to meet the national needs and fulfil the commitments to the EU and NATO. A plan should be developed to gradually re­ duce the debt and to pay the overdue financi­ al obligations to international organizations, and to properly define the obligations of in­ dividual ministries. In the future, payment of membership fees to the UN should be exclu­ ded from the financial plan of the Slovenian Armed Forces. In order to ensure stability in providing resour­ ces to modernize the Slovenian Armed Forces it is necessary to consider legislative solutions that will enable the repayment of financial commitments in the long term. 4. Legal and other normative bases Comprehensive systemic conditions for the ----- a greater security risk. A loose understan­ ding of and failure to comply with the international legal order increases the li­ kelihood of conventional military conflicts on the periphery of Europe and the Allian­ ce. Contemporary threats, crises and armed conflicts in the EU's neighbourhood pose a potential security threat to the Republic of Slovenia, to which the country will have to respond appropriately. The defence system of the Republic of Slo­ venia has stalled in its development. It cur­ rently does not reach the required level of ability to deal with future threats and risks to the national security, and cannot achie­ ve all the assigned goals and tasks or set up all the necessary defence capabilities. Given the significantly changed international se­ curity environment, it is necessary to take concrete measures to overcome the current situation. The Slovenian Armed Forces does not reach the necessary level of preparedness and abi­ lity to operate across the full spectrum of military operations. Modernization of the armed forces has ceased, and assessment of the human resources warns that this trend of reduced capacity to operate will continue in the future. The Republic of Slovenia is at a point whe­ re it is necessary to consider its role in the Alliance and the concept of providing its own security and defence. It must urgently reform the basic principles that define the objectives and interests in the field of defen­ ce, and direct efforts and resources towards achieving the priority goals. However, in doing so, the increase in defence spending will not automatically improve defence ca­ pabilities. It is also essential to renew the strategies and doctrines, to implement sy­ stem changes, to begin the modernization of the Slovenian Armed Forces, and to stop the negative trend in the area of human re­ sources in the armed forces. The political decision on a "small, modern and effective" army from the time when Slo­ venia abolished compulsory military servi­ ce and was integrated into NATO did not materialize. The Republic of Slovenia needs an army which, in cooperation with the allied forces, will be able to defend the co­ untry, participate in the provision of secu­ rity to the state and its citizens, and pro­ vide and establish security in the world. Renewed strategic guidelines and norma­ tive bases should include a decision on the future armed forces and provide the sy­ stem, status, financial, material, personnel, doctrinal and other conditions for the ar­ med forces' development and the provision of its necessary preparedness. appropriate regulatory framework in other areas related to the field of defence. The new Defence Act must provide a basis for the further development of the defence system in the long term. The new Service in the Slovenian Armed For­ ces Act, which will be proposed together with the new Defence Act, will need to regulate the areas which have so far been regulated by the Defence Act (for example, accomplishing the mission of the Slovenian Armed Forces, preparedness, military discipline and the like). It is important to renew the concepts and im­ plement solutions which will contribute to a greater ability to operate across the full spec­ trum of military operations (such as the rene­ wal of the Military Doctrine, the Military Stra­ tegic Reserve Doctrine, the Contract Reserve Concept etc.). It is also necessary to prepare a military as­ sessment of the long-term target seize, struc­ ture and capabilities of the Slovenian Armed Forces. Possibilities need to be considered for the re-enforcement of all the components of mili­ tary service, with special attention paid to the extent of personnel capabilities to implement all the components of military service in the Slovenian Armed Forces and the administra­ tive part of the Ministry of Defence at the re­ gional level. 5. Strategic policy and planning guidance It is necessary to prepare a projection of the security situation in the international enviro­ nment of the Republic of Slovenia, and to pre­ pare and, if necessary, annually update an assessment of security threats and risks to the Republic of Slovenia. A projection of the secu­ rity situation, subject to the internal and exter­ nal political priorities of Slovenia, will be the basis for the long-term development planning of the defence system of the Republic of Slo­ venia, and for the provision of the necessary level of defence capabilities. The assessment of security threats and risks will be the basis for the national security system’s response to these threats and risks. Based on the projection of the security situati­ on in the international environment, and Republic of Slovenia is also a member of, it is important to review the Resolution on the Na­ tional Security Strategy of the Republic of Slo­ venia and possibly propose its renewal to the National Assembly. In doing so, it will be ne­ cessary to also renew the objectives and inte­ rests in the field of defence. It is important to reform the Defence Strategy of the Republic of Slovenia, which will enable the implementation of the policies of the Reso­ lution on the National Security Strategy of the Republic of Slovenia, and the potential new conceptual and strategic guidelines of the Eu­ ropean Union and NATO in the field of com­ mon defence and security. The Defence Stra­ tegy will answer the questions on the required level of defence capabilities of the Republic of Slovenia and the country's resilience to cur­ rent and future security threats. The amendments to the national security do­ cuments and the policies of the European Uni­ on and NATO in the field of defence and security will, in relation to the modified pro­ jections of financial resources, be the basis for proposing that the National Assembly renews the Resolution on the General Long-Term De­ velopment and Equipping Programme of the Slovenian Armed Forces, which will provide long-term guidelines for exercising the de­ fence ambitions of the Republic of Slovenia and establishing the necessary defence ca­ pabilities. It will be necessary to take into ac­ count the new NATO Capability Targets for 2017, which will be adopted by the Republic of Slovenia. It will also be necessary to prepare a pro­ posal of the new Medium-Term Defence Pro­ gramme for 2018-2023, in line with the new NATO Capability Targets for the Republic of Slovenia for 2017, the amendments to the Resolution on the General Long-Term Deve­ lopment and Equipping Programme of the Slovenian Armed Forces, and changes to the financial projections. **6 CONCLUSION** The Republic of Slovenia is facing a worse­ ning security situation in the region and the wider international environment. Indi­ vidual EU and NATO member states have -----