DEFENSE REFORM

1. DEFENSE REFORM Maj. Zoltan HORVATH MoD, Defense Staff, Force Planning Directorate

2. AGENDA • Achievements prior to NATO membership • Strategic Review 1999 • Objectives of modernization • New structure – major initiatives • Necessity of Defense Review in 2002 • Defense Review in 2002 • Process and results • Principles of transformation • Preparation of professional force • New capabilities • 10 year-plan for transformation (2004-2013)

3. ACHIEVEMENTSPRIOR TO MEMBERSHIP(1995-1999) • Elimination of the „mass army” • Reduction of authorization from overmore than 100.000 • The effects of CFE agreement • Changed political environment • Establishment of new force development system • Development of a long-term concept (FORCE 2013) • Establishment of a modern force planning system • Adaptation of the NATO force planning system (DPQ, TFG) • Implementation of the minimum military requirements • Integration of the nationalair defense into NATINADS • INFOSEC • Assignment of personnel to NATO posts • Preparation of assigned forces

4. Strategic Review 1999Objectives of modernization Establish and garrison a force that is assuredly capable to meet the security and military strategies of Hungary – including the accomplishment of alliance commitments – especially NATO. Prescribe a force that is capable of being fiscally supported for manpower, training, and major modernization of both facilities and equipment over the next decade. Establish the HDF as one of the finest institutions of the Government of Hungary and adistinguished “Member Force” of the NATO Alliance.

5. 2010 2000 2003 2006 2004 2007 I I I I I I Timeline of Modernization (Modernization master plan until 2010) Quantitative Changes & Structural Improvements • Structural changes, • Base closures, • Manning improvements, • Compensation, • Infrastructure, • Garrisons, flats • Individual training, • Obsolete assets. • CPXs & FTXs, • Readiness, • Training areas & systems, • Repair parts, • Depots, • Infrastructure cont. • Technical improvements • Acquisitions of new assets, • Technology insertions, • Replacement systems, • Product improvement, • Sustain & modernization Establishment of a Doctrinal Based MilitaryForce Major Technical Improvements

6. CURRENT STRUCTURE OF THE MoD Ministry of Defense • - Military Intelligence Office • - Military Security Office • National Defense University - Government Frequency Management Office • Judge Advocate General General Staff Admin. Block Corp Level Organization Brigade Level Organizations Background Institutes Army Command • Finance and Accounting Service • Arms Control Office • Military History Institute and Museum • Military Aviation Office • Army Chaplaincy Service • Technology Office • Accommodation Management Office • Strategic Defense Research Institute • Acqusition and Sec. Investment Off. • Protocol and Special Events Coordinating Directorate - combat - combat support - combat service support - Training Centers - NCO Training School - Mobilization commands Air Force Command Budapesti Garrison Command - combat - combat support - combat service support - Guard Regiment - Central Military Band - Military Jail Joint Logistic and Support Command Joint Operation Center - technical supply - combat material supply - logistic technical supply - electrical technical supply Offices - peace support missions - NBC Protection Information Center - Defense Office - Central Finance and Accounting Office - Economic Planning Office - Budgeting and Work Security Control Office Other Military Organizations Medical Services National Representatives

7. xxx xxx Air Force Cmd Land Force Cmd x Veszprém Székesfehérvár x II 25th Mech Inf Air Base 43rd Signal Tata x x Kecskemét Székesfehérvár III II 101st Mixed Arty 62nd Mech Inf 59th Fighter Pécs Hódmezővásárhely 5thCmd Spt x x (MiG-29) Kecskemét Székesfehérvár 37th Engineer 5th Mech Inf III III Szentkirályszabadja Debrecen 64th Logistics 87th Atk Helo x III Kaposvár Szentkirályszabadja 5th Air Defense 15th Mech Inf (Res) III Ntl Tng Ctr Szombathely Nagyoroszi III II 89thMixed Avn Várpalota 1st Lt Mixed Szolnok 93rd NBC Base Airfield Székesfehérvár Szolnok X II I Pápa 12thSAM(SA-6) 34th Special Ops 5th EW Base Airfield Győr Eger Szolnok Taszár II III III 1st Logistics 64th Radar Surv 24th Recon Veszprém Eger Veszprém COMBATANT COMMANDS

8. EHC 5 12 5 1.k.ve. (88.) ATK 87 24 34 25 (feld) (feld) 5 64 ASLT XXX 89 MiG-29 15 HQ X Deployable 37 62 Pápa Bázis Repülőtér Taszár PÉCS Bázis Repülőtér 101 • 1,567 ve. tü. STAGING THE FORCE NAGYOROSZI EGER 1,048 HM-HVK NYIREGYHÁZA 1,278 GY Ő R HAJDÚHADHÁZ TATA BUDAPEST 1,128 TISZA TISZA DEBRECEN 2,710 Logisztikai TÖKÖL PÁPA 373 Parancsnokság 350 SZOLNOK CEGLÉD 2,415 VÁRPALOTA 253 1,476 SZOMBATHELY TÁBORFALVA SZÉKESFEHÉRVÁR 921 VESZPRÉM 93 SZENTKIRÁLYSZABADJA 795 1,254 KECSKEMÉT Légierő Parancsnokság (Tartalék) SZABADSZÁLLÁS 782 TAPOLCA 348 (700) KISKUNFÉLEGYHÁZA SZENTES 882 DUNA DUNA KISK Ő RÖS 2,415 KALOCSA HÓDMEZ Ő VÁSÁRHELY KISKUNHALAS TASZÁR KAPOSVÁR BAJA 405

9. TECHNICAL ASSETS 2000 2005 2010 Reallocation and disposition I. stage II. stage Modernization of existing assets Change to new equipment, acquisitions III. stage The reallocation of the needed and the disposition of the excess equipment and material is finished

10. GARRISON RECONSTRUCTION(Primary and important garrisons ) Eger Szentendre Tata Nyíregyháza Aszód Győr Nagytarcsa Budapest Veszprém Debrecen Székesfehervár Szolnok Tapolca Kecskemét Hódmezővásárhely Primary garrisons Important garrisons

11. What we have achieved? • A new command and unit structure • Modified ratio between combat and • supporting elements. • Elimination of division C2 level. • New service law,new carrier model • The military service ismore attractive. • Establishment of a newrecruitment network.

12. Controversial execution – Reasons of failure • Structure and not capability oriented restructuring; • Slow garrison closure and reallocation and disposition of excess materials; • Lack of necessary resources; • Structure and capabilities are not incompliance with the existing threats and risks.

13. The Government’s defense program: • Transition to a professional force; • The earliest possible completion of NATO military integration; • Defense Review; • Technical modernization and development.

14. Preparation of Professional Force • - Active duty • - Reserve personnel (IMA) • Civilian employees New Service Act • commissioned • contracted • conscripted • students, cadets Duty time: - commissioned: 18 - 57 yrs - contracted: offs, NCOs: 5-20 yrs, enl: 2-15 yrs - conscript: 6 months • No automatic promotion, • Introduction of „up & out” system • Career path • Development programs (promotion, retention, performance evaluation) • NCO training Goal:an all-professional active duty forceby the end of 2005

15. Defense Review 2002 • Overview the missions of HDF based on national interests, objectives and NATO commitments • Determine the necessary capabilities • Allocate resources to capabilities • 10 years costing plan • Clear lines of accountability and responsibility Initiated in July, 2002; Completed in August 2003.

16. Process of Defense Review 1 • Define the Foreign and Security Policy objectives • Define the Defense objectives • Define the Military Missions and Tasks • Define the Planning Assumptions (Level of Ambitions) • Identify Required Military Capability • Identify the full implications • Develop credible and robust costing • Identify options • Decide on priorities • Allocation of resources and finalization of Master Plan 2 3 4 5 6 7 8 9 Now! 10

17. Basic principles of transformation „Bottom-up” planning and implementation Discipline implementation of decisions Effectivness Flexibility Allocated resources Manning Environment

18. New capabilities • 9 NATO compatible, modern, mobile, deployable, well manned light, mechanized infantryand armoured battalions until 2006; • Modern fighter aircrafts, 3 dimensions radars, helicopters modernization/purchase; • Specialization on some capability areas (water purification, bridging, MP etc.); • Advance modernization (increased firepower and deployability); • Interoperability with military forces of Allied nations; • Lean on available capabilities.

19. Schedule of transformation • establishment of professional force; • new structure, new units; • modernization of technical assets; • development of new training system; • recruiting strategy; Phase I 2003-2006 • finalize the structure; • training and education based on new doctrines; • readiness of assigned forces; Phase II 2007-2010 • establishment of long-term force development; • effective participation in international missions; Phase III 2011-2013

20. WHAT HAVE TO DO Decision: - reorganize the MoD and HDF; - balance the resource plan. The primary mission of the Hungarian military is to represent our countryout of national borders in different peace operations; Develop a 10 years Master Plan; Develop a: - long term acquisition strategy; - long term training strategy; - human management system; - planning, programming and budgeting system. Implementation of transformation will decrease the manning costs; Permanent control over plan implementation; Start acquisitions.

21. 10 year national plan for transfomation • Detailed plan of implementation for 2004 • Broad, general plan for 2005-2006 period • Future concepts for 2007-2013 Plan must be reviewed and updated in each year

22. CORNERSTONES OF NEXT PERIOD Pursuingthe implementation of plansby political and military leaders After planning period of Integration Program, DPQ and FGs must be updated with harmonization ourOPTIONS(capability, resources, technical assets, etc.) Deadlines Human resource management is a key point of reform Training and exercices with new doctrines. Education in Defense University must be based on real requirements of forces Technical modernization Defense Planning System

23. Thank you for your attention. Questions?