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Edition: U.S. Article Comments (1) Slideshow Email Print Reprints Read September home foreclosures top 100,000 for first time 7:00am EDT U.S. is currency war's "tomb maker": China economist 6:39am EDT Wall Street flat, bank shares drop on mortgage probe 11:12am EDT Singapore move hits dollar, India intervenes 9:58am EDT Rescued Chile miners recover, face celebrity status | 10:29am EDT Discussed 195 California governor debate turns into verbal brawl 75 Republicans to take House at midterm vote: Reuters/Ipsos poll 70 Obama administration appeals ruling backing gay marriage Watched Banksy takes on the Simpsons Tue, Oct 12 2010 Red faces over top model gaffe Tue, Sep 28 2010 From the mine to the minefield Wed, Oct 13 2010 NATO backs reforms, U.S. warns allies on domestic cuts Tweet This Share on LinkedIn Share on Facebook Factbox Ministers discuss NATO's future vision 5:18am EDT Analysis & Opinion Washington Extra – Slipping away America, world’s top military forever? Related Topics World » Elections 2010 » Politics » 1 / 4 NATO Secretary General Anders Fogh Rasmussen delivers a speech during the opening session of a NATO defence ministers meeting (NAC) at the Alliance headquarters in Brussels October 14, 2010. Credit: Reuters/Thierry Roge By David Brunnstrom BRUSSELS | Thu Oct 14, 2010 11:47am EDT BRUSSELS (Reuters) - NATO ministers backed reforms and cutbacks for alliance institutions on Thursday to save tens of millions of dollars a year, but the United States warned its partners against making excessive cuts in national defense. Alliance defense ministers also approved a series of priority projects, including a plan to counter improvised explosive devices that are the biggest killers of NATO troops in Afghanistan and for ground surveillance systems. But the emphasis was on cutbacks at talks in Brussels where they agreed on the need to cut the number of NATO headquarters to six from 11, and to reduce to three from 14 the number of agencies providing support in communications and other areas. U.S. Defense Secretary Robert Gates said he was pleased the allies had been able to agree to fund priority projects, but cautioned against cutting back too far at national level. "None of our commitments will be meaningful if NATO is not funded sufficiently," he told the meeting. "As nations deal with their economic problems, we must guard against the hollowing out of Alliance military capability by spending reductions that cut too far into muscle," he said, referring to national defense spending. Reducing the number of NATO agencies would cut their staffing to around 9,000 from 13,000, and streamlining the command structure should save tens of millions of dollars a year, NATO officials said. Gates said savings should be reinvested to keep NATO "modern, strong, effective and relevant." He had also expressed concern on Wednesday that cuts in Europe, where governments have adopted austerity measures following the global economic crisis, could put more pressure on an increasingly stretched U.S. military. Britain is expected to cut 10 percent from its 36.9-billion pound ($58.4 billion) budget, and experts at Germany's defense ministry have listed potential savings of more than 9.3 billion euros ($13 billion). British foreign minister William Hague defended government plans that are expected to be unveiled next week, saying: "We have inherited a defense budget massively overcommitted so any responsible government has to do something about that." PREPARING FOR LISBON SUMMIT The steps discussed in Brussels are expected to be endorsed at a November 19-20 summit in Lisbon, at which NATO Secretary-General Anders Fogh Rasmussen wants allies to agree to invest 200 million euros to link their missile defense capabilities and interceptors which Washington plans to deploy in Europe. Gates told the meeting that NATO's collective defense commitment meant the 28-country alliance had to possess the capability to defend against ballistic missiles. There is broad support for the plan, but France has said it wants to see more details and questioned whether it is the best investment. 1 2 Next World Elections 2010 Politics Comments See All Comments (1) | Post Comment Oct 14, 2010 9:13am EDT Yes, Poland needs its American made missile defense system against Iranian missiles. The minor detail that Iran probably won’t launch a missile towards Poland or Europe, and if it did would have some difficulty following up with a ground invasion, or some other follow through, is completely beside the point. The chances of Iran launching a missile and nothing happening to Iran in response would have to be zero – or less. These missile defenses are vital only to interests running globalisation and gutting democracy to such a state as to being a cadaver. I’m sure the tax payers will be more than happy to continue making whatever contribution is asked of them by their cadaver, opps – I mean government. Gubernator Report As Abusive See All Comments (1) Add a Comment *We welcome comments that advance the story directly or with relevant tangential information. We try to block comments that use offensive language or appear to be spam and review comments frequently to ensure they meet our standards. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. © Copyright 2010 Thomson Reuters Editorial Editions: Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom United States Reuters Contact Us Advertise With Us Help Journalism Handbook Archive Site Index Video Index Reader Feedback Mobile Newsletters RSS Podcasts Widgets Your View Analyst Research Thomson Reuters Copyright Disclaimer Privacy Professional Products Professional Products Support Financial Products About Thomson Reuters Careers Online Products Acquisitions Monthly Buyouts Venture Capital Journal International Financing Review Project Finance International PEhub.com PE Week FindLaw Reuters on Facebook Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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