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Lol, I bet you can't wait for Civis to see this.
Well I think it should be disbanded and replaced with a Europe-only military alliance, no Turkey, no America or Canada - just Europe.
It would bring in Russia, Ukraine and Belarus too, along with most current European NATO members.
It's purpose would be to protect Europe, maintain the status quo (i.e. no new Third Reich or French First Empire), peace keep in troubled regions and to protect the individual countries and continent from external aggression (that includes China, Russia itself, America or the Arabs).
Although it would be a military alliance it would have no bases on foreign territory (within Europe), so no Russian bases in Britain or Estonia, no British bases in Germany for example. Europe isn't that big that a large proportion of it's military couldn't mobilise to meet an attacker so there is no need for foreign military bases.
The purpose of it would be really to just keep the peace, it'd be called something like the European Defence Alliance, Defence being the key word - not offence like NATO.
The nuclear powers within the organisation would be Russia, France and Britain and these nations would also posses aircraft carriers (Britain once it get's it's new ones in around five years time).
Britain would relaunch it's own nuclear weapons programme which it scrapped (and gave the technology to the US), since America probably wouldn't be too thrilled about being excluded from the organisation and including Russia.
The organisation would work with America and the EU but wouldn't be dominated by either, Russia (in regards to America) and Britain (in regards to the EU) would make sure of that I'm sure.
Russia, the UK and France would be the dominant players in the organisation, Germany and Ukraine would probably be important too.
In regards to overseas territories such as Diego Garcia and Acension, the American leases would be allowed to lapse and then Britain would have to decide whether to allow America to renew them or not. I'd favour renewal with strings attached - a treaty backing Britain's claim to the Falklands.
If my memory serves me correctly they've got until 2015 in Diego Garcia until the lease needs renewing.
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