Rasmussen calls for Economic NATO

One time Secretary General of NATO, Rasmussen wants to add economics to Article 5 of the Charter so that all members are bound in collective defence for mutual assistance when financial threats are faced with. Though sounds out of place as NATO is a security set-up he is trying to bring it more relevance.

Simply put, Rasmussen is calling for the creation of an economic version of the Article 5. Originally Article 5 provided that if a NATO member is the victim of an armed attack, presumably from outside, all members of Alliance should treat this attack as against them collectively and take action as deemed necessary, to assist the victim. Incidentally Article 5 was evoked only once that too By America in response to terrorist attack on Twin Towers on 11 September 2001.

My strategy analysis of the implications of this geoeconomics call is as follows:

• Already NATO is in tatters with former President Trump calling it obsolete and President Macron describing it as brain-dead. Letting down NATO aspirant Ukraine during attack by Russia is still haunting members across the Alliance.
• Widening the ambit of NATO, to stay relevant insofar as it relates to collective security, mutual defence and strengthening members in military side is understandable. But wading through finance & economics has rung alarm bells in European capitals.
• Clearly, this toes the line America follows where military power is an extension of economic power and the tools of financial & trade sanctions are continuously applied so that militarily she can maintain the superpower status.
• In the recent past, sanctions imposed by both America & EU against Russia have boomeranged on these countries especially in Europe where prices of vital commodities fuel, gas and grain have skyrocketed. Not only the households but even big corporates are protesting against the spiralling cost of living.
• Whether Rasmussen implied it or not the world is aghast at the notion that he is trying to target both Russia & China when he mentioned “economic aggression from authoritarian nations”. Further aggravation arises as he is painting would be victims as “democracies” a catch all word that groups countries across continents that are in the western camp!
  

 

Cheers!

 

Muthu Ashraff Rajulu

Business Strategist

Mobile: + 94 777 265677

E-mail:   cosmicgems@gmail.com

Blog:   Business Strategist