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Pursuant to a congressional request, GAO provided information on how the European Economic and Monetary Union (EMU) and the enlargement of the European Union (EU) may affect U.S. allies' ability to sustain or increase their defense budgets, focusing on: (1) projected defense spending for several European countries; (2) budgetary effects of EMU implementation and EU enlargement; and (3) other significant factors that may affect countries' ability to share in the costs of the North Atlantic Treaty Organization (NATO) over the long run.

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