Additional Costs of Stationing U.S. Forces in Europe

The costs incurred by the United States in stationing NATO- committed forces in Europe instead of at home are reviewed. The Jackson-Nunn amendment to the 1974 Department of Defense Appropriation Authorization Act required the executive branch to reduce proportionately U.S. Forces deployed in Europe to the extent that the fiscal year (FY) 1974 balance-of-payments deficit was not fully offset. The amendment also provided that substantial reductions in the U.S. cost burden would be sought through appropriate arrangements with NATO and its individual members.