The Kosovo action exposed a great disparity in defense capabilities between the United States and its allies. The other significant change occurred at NATO's Washington, D.C. summit in April 1999, when the alliance launched the Defense Capabilities Initiative (DCI). The 2002 Prague Summit: Enter PCC

NATO sought to address the perceived problems of DCI at its November 2002 meeting in Prague by approving the Prague Capabilities Commitment (PCC). Istanbul, Riga, and Bucharest

Unlike Washington and Prague, subsequent NATO summits in Istanbul (2004), Riga (2006), and Bucharest (2008) did not result in new initiatives setting out extensive programmatic objectives for enhancing the alliance's capabilities. The 2008 Bucharest summit declaration did not mention PCC, but referred instead to the more general Comprehensive Political Guidance, agreed to at Riga. In light of NATO missions, particularly in Afghanistan, the Bucharest declaration also stressed the urgency of acquiring specific capabilities such as strategic and intra-theater airlift and communications, and pointed toward a possible future NATO missile defense system. Defense Spending and Progress Reports

To meet the goals of PCC, the European allies need to restructure and modernize their militaries and address deficiencies in equipment procurement and in R&D programs. It has also been suggested that the capabilities requirements effectively raise the bar for new members of the alliance.
With the end of the Cold War, NATO began to reassess its collective defense strategy and to anticipate possible new missions. The conflicts in the Balkans highlighted the need for more mobile forces, for greater technological equality between the United States and its allies, and for interoperability. In 1999, NATO launched the Defense Capabilities Initiative (DCI), an effort to enable the alliance to deploy troops quickly to crisis regions, to supply and protect those forces, and to equip them to engage an adversary effectively. At its 2002 summit, NATO approved a new initiative, the Prague Capabilities Commitment (PCC), touted as a slimmed-down, more focused DCI, with quantifiable goals. Analysts cautioned that the success of PCC would hinge upon increased spending and changed procurement priorities, particularly by the European allies. At NATO's 2004 Istanbul summit and its 2006 Riga summit, the alliance reaffirmed the goals of PCC. The 2008 Bucharest summit declaration did not mention PCC, but, in light of NATO missions, particularly in Afghanistan, stressed the urgency of acquiring specific capabilities such as airlift and communications. Congress may review the alliance's progress in boosting NATO capabilities. This report will not be updated. See also CRS Report RS22529, The NATO Summit at Riga, 2006, by [author name scrubbed].