The president and a civilian minister of defense control Argentina's armed forces. The paramilitary forces under the control of the Interior Ministry are the Gendarmeria and Prefectura Naval (coast guard). The Argentine armed forces maintain close defense cooperation and military-supply relationships with the United States. Other countries also have military relationships with the Argentine forces, principally Israel, Germany, France, Spain, and Italy.
Lack of budgetary resources is the most serious problem facing the Argentine military today. Current economic conditions and the government's commitment to reduce public sector spending have slowed modernization and restructuring efforts. Under Presidents Menem and De la Rua, Argentina's traditionally difficult relations with its neighbors have improved dramatically, and Argentine officials publicly deny seeing a potential threat from any neighboring country. Mercosur has exercised a useful role in supporting democracy in the region, intervening, for example, to discourage the Paraguayan military during an attempted coup in early 2000.