public finances and the ambition to achieve the level of 1.6% of GDP on defence in 2020, while aiming for 2% of GDP in the long-term. Equipment expenditure will adapt to the NATO criterion of spending a minimum of 20% of defence spending to gradually overcome long-term shortfalls in the area of AF SR equipment and other materiel, including communication and information systems. Slovak defence spending will increase according to the needs of the defence of the Slovak Republic and allied commitments 98) An increase in defence spending will be achieved mainly by Government investment in financially demanding strategic modernisation projects, which will be approved and financed individually. 99) The development of national defence capacities (mainly AF SR capabilities) will require, in the area of defence spending: • a realistic and binding annual budget, • a multiannual stability of budgetary cycles, • long term predictability of planning assumptions, • a gradual growth in line with the objective needs of the defence of the Slovak Republic along with commitments to Allies. 100) Predictability of defence spending is a key precondition of their effective allocation. It allows for a purposeful systematic development of national defence capacities in tandem with the Slovak defence industry, as well as an effective involvement of Slovakia in multiannual bilateral and multinational development projects and initiatives. 101) Effort will be made to gradually increase Slovak defence spending and by its effective allocation achieve: • in the mid-term (by the end of 2020) a better balance between national defence tasks and resources, including the execution of priority armament projects, • in the long-term (by the end of 2030) a marked reduction in longterm development shortfalls in the AF SR by the execution of most large (strategic), financially demanding armament projects, • full equilibrium between national defence tasks and allocated resources, assuming national defence spending will approach 2% of GDP in line with the long-term national ambition and commitments within NATO. 102) When taking decisions to employ the AF SR abroad as part of NATO and EU rapid reaction forces or other unbudgeted missions and operations, the preference will be for such financing that will neither deprive other activities, nor the development of the AF SR. The Slovak Government will be presented with a declaration of AF SR units and assets provided to NATO and EU rapid reaction forces, the employment of which (to complete tasks abroad) will require a speedy release of funds for this purpose in excess of the MoD budget. 103) The MoD will take measures ensuring the purposeful, efficient and transparent allocation of resources, in particular: OF THE SLOVAK REPUBLIC 47