Retired military commanders warn of dangers of more defence cuts "Europe, already weak, is disarming further," they warned. At the same time the United States" willingness to pick up Europe's defence bill was weakening thanks to spending cuts being brought in by the Obama administration. "Defence needs steady and predictable funding," the report noted, adding the investment could be used to provide "excellent economic stimulus." The Association was formed in November 2007 to lobby for what it described as "sufficient, appropriate and fully funded Armed forces that the nation needs to defend effectively its people, their security and vital interests at home and worldwide." It has argued that defence spending is not only too low but has led to inter-service wrangling and to the armed forces being over stretched. Philip Hammond, the Defence Secretary, appears to have some sympathy with the view that the armed forces should be spared further cuts at a time when George Osborne is looking to trim £10 billion from public spending. Treasury Officials are understood to be looking for further economies in addition to those cuts already planned which would see the armed forces cut by 30,000 and the country left without a single working aircraft carrier. The Desert Rats, who played a key part in turning the tide of the 1939-45 war, would be left without tanks as a result of the planned cuts. Last week Mr Hammond launched a vigorous defence of the his department's budget warning the Armed Forces could not sustain further large scale economies, even though some savings could be made from greater efficiency. The Conservative-dominated Defence Select Committee has also voiced its opposition to further cuts in the 2015-16 spending review. However a spokesman for the Ministry of Defence denied that current spending was inadequate. Far from being underfunded, the UK has the world's fourth biggest defence budget and we will be spending nearly £160 billion on equipment and equipment support over the next decade - a real terms rise of £3 billion between 2015 and 2020. The Defence Secretary has been clear that he will vigorously be making the case for Defence, including that the assumptions we currently hold remain valid as part of future Spending Review discussions. For the first time in a generation the MOD has a balanced budget and the multi-billion pound Defence deficit that the Government inherited in 2010 has been eliminated.