VIENNA, March 19 - The Organization for Security and Cooperation in Europe (OSCE) reached agreement on a budget on Thursday for the first time in five years, accepting significant reductions sought by the United States.
The Vienna-based organisation, which brings together 57 nations from across East and West and includes Canada, Russia and much of Europe and Central Asia, has frequently faced deadlock in recent years over budgets and other major decisions. Moscow had accused the OSCE of being dominated by Western interests, contributing to the inability of participating states to reach consensus on funding and priorities.
Last year the United States publicly pressed for deep cuts and threatened withdrawal from the organisation unless spending was reduced by more than 10% and the OSCE "revert to its core functions." U.S. officials also criticized some of the OSCE's better-known activities, including election monitoring in countries where voting is not fully free or fair.
After the participating states convened and discussed the proposed budget, the OSCE issued a statement saying: "The budget will preserve the Organization’s operational effectiveness, while recognising the need for reforms to ensure sustainable financing and long-term impact." Delegates at the meeting of all participating states approved the budget unanimously.
While the OSCE did not publish the precise total amount of the reductions in its statement, diplomats following the talks reported that the cuts equate to approximately 15 million euros - about 10% of the 2021 budget, which had been essentially rolled over with a freeze on the amount.
The organisation warned that the smaller financial envelope will have personnel consequences. In an official comment, the OSCE noted: "A reduction in the overall financial envelope will inevitably affect staffing levels across all executive structures. Of approximately 2,000 staff members, more than 100 will have to leave the Organization they have served with distinction."
Swiss Foreign Minister Ignazio Cassis, whose country holds the OSCE's annually rotating chairmanship, said the budget agreement underscored the body's continuing value. He added: "It confirms that, even in times of heightened tensions, the OSCE remains a platform where dialogue delivers - and where collective decisions strengthen our ability to act."
The budget deal marks the end of a prolonged period in which the OSCE functioned without a newly approved budget, a situation that had limited its ability to make longer-term spending commitments. The unanimous approval on Thursday reflects a negotiated response to calls from some member states for tighter fiscal discipline and a refocusing on certain core activities.
Currency conversion quoted during the discussions placed the euro to dollar rate at $1 = 0.8655 euros.
Key points
- For the first time in five years the OSCE approved a budget, with unanimous support from participating states.
- Diplomats said cuts amount to about 15 million euros, roughly 10% of the 2021 budget; the organisation warned that over 100 staff out of about 2,000 are likely to leave.
- The agreement follows pressure from the United States for spending reductions and a return to core functions, and comes amid prior deadlock and criticism from Moscow about Western influence.
Risks and uncertainties
- Operational capacity risk - The mandated staff reductions may reduce the organisation's ability to carry out programmes across its executive structures, affecting diplomatic and monitoring activities.
- Political strain - Persistent East-West tensions, including past accusations from Moscow and prior threats of U.S. withdrawal, could lead to renewed disagreements over future budgets or mandates.