nato it will be the secretary-general class nato summit before former norwegian prime minister takes over in october. while secretary general rasmussen tenure is not yet complete, we can be confident he has left behind a rich legacy of accomplishment for were -- for which nato member nations owe him a debt of gratitude. as many of you know, the about -- atlantic council recognizes his rich accounts but -- accomplishments by awarding him distinguish international leadership award in 2012. i am delighted be allowed -- atlantic cancel is able to welcome him once more to the stage on the visit to washington. please join me in welcoming the choice -- 12 secretary-general

of the nato. thank you. [applause] >> it is wonderful to see you again. thank you for your remarkable service over the decades as a marine, as supreme commander of nato forces, and as national security advisor. i remember with great leisure our cooperation -- pleasure our cooperation during her term as national security advisor. you know nato from the inside and you know what it takes to keep the alliance united and your commitment to the transatlantic relations is firm and strong.

thank you very much. also, a big thank you to fred and damon and your dedicated team here at the atlantic council. i truly value your strong commitment and service to the transatlantic community and to nato. fred, it is a great privilege and a pleasure to work with you. you have done an amazing job in making the atlantic council such an influential forum in international affairs in washington and worldwide. the atlantic council shapes and informs an important debate. on the challenges we face and the opportunities he must grasp in a world that is more competitive, dynamic, and disorderly. through your tireless work, you play a key role in keeping the bond between north america and europe strong.

now and into the future. we recently marked the 70th anniversary of the d-day landing. a stark reminder of the horrors of war, but also of what is possible when our nations unite against tyranny. since then, the nato alliance has underpinned freedom, peace, and prosperity across europe and north america. protecting our values, individual liberty, democracy, human rights, and the rule of

law. today, those values and our way of life are once more under threat. we are surrounded by conflicts, danger, this order, and autocratic regimes. in our -- an arc of instability from the middle east to africa and the sahara. rising territorial disputes in the nation and a revisionist russia breaking international rules and undermining trust. but russia is not just trying to re-create a sphere of influence. it has dealt a dangerous blow to the internet jewel -- international rules-based system we have built over the decades. it's illegal and illegitimate actions encourage other autocratic regimes to follow suit. the best way to face some threats is clear. we must be confident in our values.

reinforce our readiness. and strengthen the transatlantic bonds that remain the bedrock of our international order. since world war ii, the solution to every strategic challenge has been transatlantic. the cold war, the balkans, afghanistan, or the financial crisis. america and europe together, training together, and when necessary, fighting together. this is how we have protected our nations and promoted our values.

even the most successful relationship needs work. we cannot take our transatlantic bond for granted. we must renew our commitment and continue to invest time, energy, and resources to keep it strong. to meet the challenges we face, we need a truly integrated transatlantic immunity -- community. a truly integrated transatlantic immunity. -- community. i believe there are three things we must do. reinforce our economic ties, deepen our personal and cultural links, and strengthen our security. first, the economy.

trade encourages the creation of wealth. it discourages conflict and conquest. it generates greater prosperity and this in turns we -- in turn leads to greater security, as people do not want to put their prosperity at risk. so a healthy economy and sound security create a virtuous circle. in today's interconnected world, the link between economics and security and between peace and prosperity is stronger than ever. it is particularly strong in the relationship between europe and north america. together, we represent the most powerful economic bloc the world has ever known.

but with a greater local competition, we need to work harder to ensure our prosperity for the future. a transatlantic free-trade area is a unique opportunity to reinforce our economic task and to lock in our prosperity. the trade deals currently being negotiated between north america and europe are the next that and the right step -- next step in the right step. the transatlantic trade and investment partnership will eliminate terrorists, cut red tape, and open up new markets. it is potentially the biggest trade and investment deal in history. well, as a former prime

minister, i know just how difficult trade negotiations can be. but we must look beyond the technical details to see the big gains within our reach and to move forward, because this is an opportunity we cannot miss, to promote growth, create jobs, and improve our quality of life. we also need a new focus on energy security. much of europe is now reliant on russia's oil and gas. we have, so to speak, burned our way into a position of independence -- of dependence. as we see in ukraine, russia is quite capable of turning off the taps.

putting an end to that dependency is now up the utmost strategic importance. european nations are already doing more to reduce this dependency. they are increasing their storage reserves, engineering pipelines to redirect energy to where it is needed, and bringing in energy from other sources. we must also find new ways to generate, extract, and distribute energy. be that oil, gas, or renewables. we need to open our markets to each other because if you have to depend on anyone, it is better to depend on your friends. and those friendships must be fostered. this is my second point.

we have to even the personal and cultural ties that bind us so closely. 30 years ago, i came to the united states as a guest of the international visitor leadership program. i can tell you, a life-changing experience. it helps me to know and appreciate this great country and its people. as many people as possible should have that same opportunity. i want to further strengthen the

personal bonds across the atlantic, so in preparation for our summit in wales in september, i asked young, emerging leaders from all nations of the alliance how they think we should do it. i would like to thank the atlantic council facilitating this work. the results have been truly enlightening and valuable. one of the main recommendations of the emerging leaders is to enhance mutual understanding between spin -- between the nations of the alliance through personal ties, and i think they are right. we need to increase our transatlantic student scholarships and exchange programs. to increase our scientific and

cultural cooperation, to appoint honorary ambassadors to spread the word about the value of the transatlantic on end of nato -- transatlantic bond and of nato and to form those lifelong relationships that have bound our people together for so long. now, my third point underpinning everything we do is we need to strengthen our security. the english philosopher thomas hoppes wrote of a world without rules. a world without security. he described this world as having no industry, no movement, no culture, no society. nothing but the continual fear of violent death, of a world where the life of man was nasty,

brutish, and short. security is necessary for us to live free from fear. security takes work. for 65 years, that work has been led by the countries of the nato alliance. in today's dangerous world, nato must be ready to respond to whatever threats we face, to act quickly whenever, wherever, and however needed. this means europe and north america consulting together, acting together, and sharing the responsibility together. i know that from this side of the atlantic, it can appear that european allies expect the united states to defend them but they are not prepared to defend

themselves. but i have to say, this is simply not true. remember, during the cold war european soldiers were confined to barracks. not so now. europeans have placed themselves in the line of fire in the balkans and over libya, in afghanistan. for every two american soldiers

that have served, one european soldier has served with them and many paid the ultimate sacrifice in our common cause. responding to russia's aggression in error eastern -- in our eastern neighborhood, all 28 allies have stepped up to the plate to reinforce our defense. from the balkans to the black sea, we have more planes in the air, more ships at sea, and more troops on the ground. the united nations remains crucial. but most of the planes are european. most of the ships are european. many of the troops are european.

this is nato solidarity in action. truly all for one and one for all. we must also plan for the future. and be ready to deal with any threats from wherever they come. so for our wales summit, we will ensure that nato was always prepared through our new readiness action plan. we are looking closely at how we deploy our forces for defense and deterrence, what combination of forces we need, where they should be deployed, and the readiness -- their readiness. we are also considering

reinforcement measures such as necessary infrastructure, the designation of bases and prefers a shooting of equipment and supplies. we are reviewing our defense plans, assessments, sharing arrangements, and early warning procedure. we are also adapting a new exercise schedule to the new schedule to the new security environment. we want to strengthen our nato response force and special forces so we can respond to any threat against any member of the alliance, including when we have little warning. readiness requires resources.

i welcome president obama's $1 billion reassurance initiative. it shows the united states' enduring commitment to the security of europe. now, other allies need to strengthen their commitment and i am the first to say that some european nations can and should do more. nato is an insurance policy, an insurance policy against instability. more members must they their premiums -- pay their premiums. that premium has just gone up. at our summit in wales, i expect all allies' leaders to commit to the changed cost on defense spending to reverse the decline, and to back up their commitment with concrete action.

estonia, as an example. estonia has shown that despite a severe economic crisis, it can be done. estonia has shown that allies that invest at least two brent -- 2% of the gross domestic product in defense and i welcome the commitments of lot the a, lithuania, -- latvia, lithuania, poland, and turkey to do the same.

if all the european allies spent 2% of their national income on defense this year, we would have another $90 billion to spend. that is the equivalent of today's defense budget of germany, italy, netherlands, and norway combined. now, i am not naïve. i know we will not achieve this overnight. but at the summit in wales, we need to turn a corner. to start to see defense spending in europe rise in real terms for

the first time since the end of the cold war. of course, national budgets have been under incredible stress. things are changing. public finances are coming under control and error economists are beginning -- our economies are beginning to grow. public finances are coming under control and error economists are beginning -- our economies are beginning to grow. increasing defense spending is never easy. in light of the threats we face, it has become a necessity. but of course it is not just about what we spend. it is how we spend. we need to focus on what we

really need to keep our nations safe in the 21st century. on capabilities and skills for the future. we must do more together as allies and partners. in afghanistan, we fought the guest coalition in history. 50 nations from many continents united in a single cause. in all operations, from the balkans delivery of -- the balkans to libya, they have made valuable contributions. we must maintain our political and military cooperation with

them to build stability in the world. we must also do more to help those who require our assistance to develop effective local forces. in wales, we will launch a defense capacity building initiative. this initiative will allow us to help other nations build up effective defense structures and forces of their own. so that they are better able to take care of security in their own region. and so we can project stability without always deploying large numbers of our own troops. so our wales summit will ensure that nato stands ready, robust, and resolute to face the future. ladies and gentlemen, we are fortunate to live in lands that are free.

but freedom is not a natural state. it has been fought for, suffered four, died for -- suffered for, died for. to safeguard the flame of freedom, we must stand ready to protect and promote our values, stay strong, confident, and united, and strengthen our transatlantic community. thank you. [applause]

>> thank you very much, mr. secretary general. i'm the executive president -- the vice president here at the atlantic council. we have about 25 minutes to speak. then the accu -- let me add code to thank you. especially since you have just come off the plane arriving at ellis. and to remind everyone who is covering this online or the television audience of the #futurenato. thank you to your shout out of the nato future leaders. i think we have two of them with us today. they are both over here. thank you for being with us today. really important program and

thank you for your leadership and getting it off the ground. mr. secretary-general, you just delivered a pretty strong message about how to strengthen the transatlantic bond and capture the spirit of an atlantic council meeting -- mission. the solution to every challenge has been transatlantic. in nato, you began this strategy by talking about the economy and energy, talking about cultural ties and third, only getting into the security components that. let me start there and i want to get into today's crises. as the nato sect jen, i think that is an unusual point. what is your rationale for leading with messages that would typically be outside the scope of the alliance? >> it is true in the nato treaty. if you read article to in the nato treaty, you see that already be founding fathers stressed the importance of closer economic ties among allies and i don't think we have reached the full potential of that economic cooperation. of course you could see the

european union as part of that strengthening of economic ties among allies, but i would very much like to see a strengthening of the transatlantic economic ties. i think that is very much in accordance with article two in the nato treaties. it is legitimate for a neck -- a nato secretary-general to talk about economics because security and economics are interlinked. >> that is an important point to point out. let me turn to the issues most immediately at hand. you have been working on the wales summit agenda for a while. you have been talking about nato for a purpose ever since it was clear since the alliance would be drawing down its forces in

afghanistan and potentially moving away from an operational alliance. now you have two pretty compelling crises on nato frontiers. one in the east in russia undertaking aggression in ukraine and you have been plainspoken about that, but also on turkey's frontier. another member. what is happening not just in syria but iraq, with isis. i think you said that we are surrounded by conflict, danger, disorder, and autocratic regimes. how are these two immediate crises, which were not part of the planning horizons for wales, how is it impacting your agenda and shaping it heading into wales? >> both of these crises will have a major impact on our agenda in wales. obviously russia's aggression to ukraine will put a lot of emphasis on the need for a strong, collected defense.

that is why the summit, i hope we will adopt a readiness action that is why the summit, i hope we will adopt a readiness action plan that will improve our ability to respond swiftly and if needed, to defend and protect our allies. maybe you would expect the summit to be very much focused on the situation in the east. but at the same time, we have seen the crisis not only in syria but now also in iraq but i could also mention libya and north africa as examples that the alliance must never become a one-dimensional allies -- alliance. it is of the utmost importance that while we focus on strengthening collective defense, we protect allies

against the potential threat from the east, we should not forget other security challenges from the middle east, from north africa, even from cyberspace. the wales summit will focus on the broad range of security challenges and address all three nato tasks. territorial defense, crisis management, and cooperative security. >> if you think about what is playing out in the east in ukraine, it is clear that the alliance has made a few moves to reassure and reposition many eastern allies. what about ukraine itself? what about the eastern partners, if you will, right now? the focus of the kremlin is on ukraine and moldova or georgia and less so on romania where the alliance is taking action. how do you grapple with what is essentially nato's eastern partners? >> we have decided to step up

our cooperation with our eastern partners. ukraine, we have a nato-ukraine commission and we have had several meetings, recently also with a new foreign minister and we have adopted a comprehensive cooperation program. you will see enhanced cooperation between nato and ukraine in the coming years, including military cooperation. it remains to be seen at the summit how far we can go, but personally, and i am outspoken about it, personally i hope our defense capacity initiative could also apply to ukraine. we will see. >> what does the military to military type of relationship expect to do for the military -- defense capacity initiative? >> i think it is clear to

everybody that ukrainian armed forces need modernization and further capability development. i think nato has expertise that could be used to reform and modernize the ukrainian armed forces. but we have also decided to enhance our cooperation with moldova. by the way, recently we saw moldova take a significant step by providing troops to our operation in coso. -- coso bow -- kosovo. we have decided to develop a substantial package of cooperation, elements with georgia. with all our eastern neighbors, we want to step up our cooperation in the coming years.

>> we are not quite ready for enlargement. is that the message coming out of nato headquarters right now? >> now you put it in a negative way. i would put it in the positive way that we continue to take steps within our open-door policy. our door remains open to european countries that fill the necessary criteria -- fulfil the necessary criteria. it will be for the summit to take decisions, but we are preparing a substantial package for georgia and in regards to montenegro, we have decided to open, focus, and intensify talks and foreign ministers will assess the situation at the latest by the end of 2015 and decide whether the time is ripe for inviting montenegro.

i think it strikes the right balance to ensure that our "he -- our open-door policy remains credible, but at the same time we do not come from eyes on criteria. >> let me follow-up on the defense capacity initiative. is this initiative in part a reflection of lessons learned in libya? this is an operation that nato was not planning for. at the end of the operation, we have a trip amount of work at the council on libya today. has that influence the information today? >> yes indeed, but i would broaden it. i would afghanistan as one of the lessons learned. seen retrospectively, i think we started our mission in afghanistan much too late. we did not start in earnest until 2009. i think we should have started

much earlier. it is much better to train and develop local security forces. politically it is better to give the defense of afghanistan an afghan face and economically, it is a better deal to make local security forces capable to take responsibility for security that you deployed our troops -- than to deployed our troops for a long time. afghanistan is an example and libya is an example and last year, we received a request from the libyan government for assistance to help them build their security sector. we responded positively, but for well-known reasons it has been a bit difficult to implement that positive response. we stand ready.

once the libyans are ready, we are ready to assist them. >> let me shift the gear before i turn to the audience and take questions back to the transatlantic part of the relationship. you refer to the alliance is an insurance policy for its members and that the premiums have just gone up. what i took away a strong statement that you are prepared at wales, you expect alliance leaders to commit to changes in defense spending. i think -- that is a pretty big goal you later. you mentioned president obama mentioning the $1 billion initiative. at capitol hill, there is a political instinct that resonates. people understand the challenge that we are facing from putin's russia, the national -- rationale behind. i think people have been concerned with their own investment and resources. you just raised the bar pretty high with what you articulated. do you think you are on a path

of actually recovering from the bottom of where we have been in the recession on spending and reversing that trend? >> i see the momentum. i would not suggest it would be easy. on the contrary. i think it would be uphill. but because many countries are still struggling with weak economists -- economies, it is important to cut deficits and stop endebtedness, because indebted countries are volatile. having said that, i see a positive development in europe. i mentioned in my introduction that countries that have already decided to reverse the trend, and that is not hot air.

that is commitments based on broad political agreements in their parliaments. estonia has already achieved the 2% go. lottie up -- latvia, lithuania, turkey, poland have promised to work in the same direction, spending from 2017-2020. i think more will follow. in addition to that, it would also be important if nato allies would commit to fulfill the initial benchmark -- the nato benchmark on spending at least 20% of their defense budget on research development and equipment. it is not just the size of the budget but how the money is spent and we will focus on both issues at the summit. >> i think as the hill the liberates how to respond to this $1 billion package, it is important to get that message out there.

then return to the audience and taking questions and comments. let me start in the front. then they collect a couple if i may. please introduce yourself. >> my name is korean. i am the former conductor -- kareem. i'm the former vector of the national orchestra. i was an advisor as well. my question concerning the current situation in the middle east and focusing on iraq. if, and only if there was an initiative of awakening similar to the situation back in 2006 in areas that are not necessarily under the control of the central government, the central, legitimate government in baghdad

and if such groups and the initiative requires the assistance of nato directly, would that be something that would be even a discussion or consideration? >> thank you. then you pick this up as well. >> i like the idea that you started with economics and moved to security later on. but as you know, the relationship between the nato and eu is imperfect. is there any chance between now and wales are afterwards to get -- maybe this is a strong phrase -- to get the three recalcitrant countries, great, turkey, and cyprus, to get the institutions to work together, and an idea that has been around a long time, to have an extra half they at the end of the summit to bring be european union leaders in so there can start being some kind of active, serious coordination between the two institutions for common

purposes? >> maybe take these two and we will pick up a few more. >> first on iraq, if i understood the question correctly, it was, in essence, could we imagine nato assist iraq upon request? >> and awakening. the social populist community fighting back against isis. [indiscernible] >> i don't see nato engaged directly in iraq. but as you know, the iraqi government has requested assistance from individual nato

allies, primarily from the united states. as regards to nato, we are focused on providing effective defensive protection of our allies. in this case, of course, turkey in particular is very much focused on the security situation in the region and i visited and cora recently and discussed in depth. we have also had consultations in nato upon request from turkey. that is how i see nato right now. on nato-eu, you are right. we have not reached the full potential of a nato-eu cooperation. but having said that, i would add that we have made a lot of progress during recent years. when it comes to operations, we coordinate and cooperate seamlessly in theaters where the eu and nato operate together.

from a practical point of view, it works quite efficiently. when it comes to capability development, we have achieved a lot of progress. as the european defense agency and allied command work very closely together. i think i could safely say that we avoid duplication and waste of resources through close coordination. i would say an efficient division of labor. finally, on clinical conservation, i think we have the biggest problem. because of these well-known topics and disputes, it is sometimes difficult to organize nato-eu meetings. there is one area we are allowed to discuss informal meetings, namely bosnia.

the you upper -- the eu operates a 30 plus operation which means the e you -- eu can use nato assets to conduct operations. so we are allowed to have formal nato-eu meeting. while bosnia is important, i can easily think of other issues that warrant close nato-eu cooperation. even in this area, we have seen progress recently. actually, we have had two meetings. it is an example when the situation so warns, -- so warrants, it is possible to have a pragmatic way forward. all in all, i would not buy such a bleak picture as you did. i see -- yeah. i see some light.

i see some light. there is still progress to be made. of course, ultimately we need to find a solution to the conflict. >> let me move to west clark. >> wes clark here. it looks to me like in ukraine, they are fighting back pretty effectively right now. what is nato able to do to help the other countries deal with the internal challenges that are present in the baltics and countries like bulgaria? do we have a role in that or are we ceding it to the you -- to the eu? >> let me move to the other side of the room. is there a mic there?

>> thank you. leandra bernstein. my question is, you have created quite a narrative as far as russia, giving it an anomie image -- an enemy image, and it is questionable whether creating that image of russia is intended to reinvigorate somehow the nato alliance, which has seen a lot of, in certain analysts' views, defeats in the 21st century in particular, and significant struggles economically and likewise. is this creation of russia as a bogeyman a defensive attempt to try to pull the alliance back together? >> them the go-ahead and pick up

the ambassador as well. -- let me go ahead and pick up the ambassador as well. >> you mentioned the necessary conditions for the enlargement of nato. could you describe more specifically what the necessary conditions are? are they measurable and will enhance cooperation cover those enhanced conditions? as a result, will it pay to wait towards nato membership for countries? thank you. >> first, to wes clark, what we are witnessing is maybe not entirely a new kind of warfare, but we call it hybrid warfare. a combination of traditional methods and more sophisticated covert military operations

combined with sophisticated information and disinformation operations. and you are right in pointing to the risk that hybrid warfare could be used against some nato allies. for instance, in the baltic states, taking into a crowd -- account of the russian doctrine that they preserve the right to interfere or intervene, to protect what they consider the interests of russian-speaking communities. as we all know, and estonia and latvia, we have substantial russian-speaking minorities. bulgaria is another case, but we know from historical reasons that there are special ties.

it is irrelevant. -- it is relevant. it is a highly relevant issue. we are dealing with that. this particular issue is part of our readiness action plan because it is also necessary to be ready to counter such hybrid warfare. having said that, and in response to your question, is it surely a nato issue? no it is not. propaganda, information, and disinformation operations. that is traditional nato operations. excellent example of where we need cooperation.

there is of utmost importance that we improved our ability to counter that kind of warfare. there is no need to develop or create a specific picture of russia to reinvigorate our alliance. whys obvious to everybody nato is needed. we need a strong collective defense to protect our populations against any kind of threat. it is russia herself that creates a particular picture right now.

in me remind you that november 2010, we decided to develop a partnership between nato and russia. lot in the last one years to develop a constructive cooperation with russia. we do believe that a positive engagement with russia is the right way forward. sees it differently. read the russian military nato as, they point to an adversary. it is russia that creates this particular picture. open-door policy, let me put it this way. at the end of the day it is a

political decision whether time membership. withe in close dialogue applicants. for some of them we have developed a membership action plan. within that plan we define certain reforms to be carried out. certain criteria must be fulfilled. montenegro as an example we have pointed to forms of their security sector. we will focus and intensify our talks with montenegro on that issue. the aspirant countries know very well what is needed. they know what is needed to open

the door. coming to the end of an hour. i would like to ask you a question. even as we talk about looking forward to the fall and the end of your tenure when you step down, you have an enormous agenda still on your plate. when you think back on your time as secretary-general, you said something that struck me as i was looking back at your original remarks. you have to straddle the atlantic with one foot in europe and one foot in north america. when they come together i am comfortable. i am the drift apart, one who feels the pain. if you think back over your tenure, what has been the biggest challenge for you to bothe as you represent sides of the atlantic at the same time.

? >> i am quite comfortable. we have seen a closer transatlantic relationship during my tender as -- tenure as secretary-general. seen our operation in afghanistan. we decided on a search in late 2009. the american position was followed by a european commitment and also the libya in searched in 2011. use of the europeans take the lead for the first time in the history of our alliance.

i have experience during my tenure as secretary-general that we have had more political confrontations in the nato council that we have in the past. following the new strategic concept in which we declare that any ally can request consultations on any issue of interest. we have had a lot of consultations on issues where we did not have any intention to intervene as a nato alliance. atlanticeen the north council have a dialogue. when we speak about operations and when we speak about the transatlantic dialogue, we have seen a closer cooperation develop during those five years.

that is why i don't feel pain. i am quite comfortable. >> terrific. terrific. i apologize for the questions i was not able to take. for those of you watching under 35 weou are are recruiting for nato future leaders. you can get your application in. thank you to your team who is been great to work with. congratulatingin the secretary-general. [applause] >> please remain seated. thank you.

several live events to tell you about. because of gaps in training education, health care providers and social workers. that is on c-span3. a hearing on european energy security chaired by chris murphy of connecticut. he was part of a delegation to eastern europe that included a stop in bulgaria. stopping work on a pipeline. be live from the veterans affairs committee for a hearing with whistleblowers.

at can see that on c-span2 7:30 p.m. eastern time. headlines andy's your phone calls live on " washington journal." the house of representatives is back at noon and. we will look at some of the key issues before congress, including immigration. p 8 -- 8:30 a.m., we will take your calls about abortion and contraception.

we look at global oil production and a report that shows the u.s. has surpassed saudi arabia as the world largest oil producer. that thea today" ports select committee to investigate then ghazi is expected to cost $3 million this year, more than that used to maintain and staff the veterans affairs committee. picking of the v.a., that hearing tonight on the role of whistleblowers. you can watch that hearing at 7:30 this evening on c-span2. it was yesterday that the administration announced an effort that would spend over $4 million to make sure that her teachers would end up