Two expensive wars in Iraq and Afghanistan have smashed America's defense budget over the last 10 years and contributed to a national debt of more than $15 trillion (11.8 trillion euros).

US President Barack Obama put forward his vision last week for a new US defense strategy that will cost his country less. Reductions will not be arbitrary, linear or unilateral, he said. The defense budget would be spent in accordance with strategic needs.

With its new military strategy America will focus primarily on the Asia-Pacific region and the Middle East. Europe has now slipped into third position in the US geographical priority list having previously sat comfortably in first place.

US debt has made cuts necessary to the military

US Defense Secretary Leon Panetta had already made it clear that the Asia-Pacific region and the Middle East are now of "growing importance to the future of the United States with regard to its economy and national security." The United States plans to expand its military presence in these regions. Investments in coalitions and alliances including NATO will also be stepped up.

America's military commitment in Europe must "necessarily" adapt to the new financial circumstances, Pancetta said, "especially given Europe's security needs compared to strategic priorities elsewhere."

Decreasing presence in Europe

Now Panetta has provided further details on the nature of the reduction, saying that two brigade combat teams (between 3,000 to 5,000 personnel) would be withdrawn and replaced by rotating military units. Three such brigade combat teams are currently stationed in Germany, a fourth is based in Italy.

With around 52,000 US troops in the country, Germany is home to the second-largest contingent of American forces outside the United States, behind only Afghanistan. It is uncertain, however, how much longer so many US soldiers will continue to be stationed in Germany.

"The Americans will almost certainly reduce their troop presence in Europe further and in doing so will also close military bases," said Otfried Nassauer, Director of the Berlin Information Center for Trans-Atlantic Security (BITS).

Several regions in Germany could suffer economically as a result of America's new military direction if the US does begin to reduce troop numbers in the country.

Oliver Thränert, a security expert at the German Institute for International and Security Affairs (SWP), said he also expects American troop reductions in Germany. But a "full withdrawal" is unlikely, he told Deutsche Welle.

"Ramstein Air Base, in particular, is vital to American soldiers for its command and communication structures as well as for its medical care," said Thränert.

Ramstein Air Base continues to be a vital link in Germany for American military interests

The potential impact of the new military strategy on Germany becomes clearer when looking at revelations in a secret US State Department dispatches published by WikiLeaks dating back to January 21, 2010.

The dispatches revealed that a total of 10,471 US soldiers and army employees will be pulled out of Germany by 2015 at the latest. Around 23 sites, mainly in the German states of Hesse and Baden-Württemberg will be affected.

It is estimated that the southern German city Mannheim could suffer losses of around 6 million euros per year as a result of a troop withdrawal. Meanwhile Heidelberg, the oldest American military garrison, is expected to suffer losses worth up to 7.5 million euros.

American nuclear weapons

Bases will be closed in Europe says Nassauer

The new American defense strategy paper did little to clarify what will happen to the 20 remaining nuclear weapons stationed at the US air base in Büchel, Rhineland-Palatinate.

According to Nassauer, the Americans no longer wish to contribute as much to Europe's "classic defense" as they have in the past. Nevertheless, he added, they intend to fulfill their treaty obligations by maintaining a troop presence in Europe.

"If the US reduces its troop strength, however, it could attempt to compensate by placing more political emphasis on its nuclear weapons," Nassauer said.

By doing so, Nassauer said, America would be emphasizing to the world that despite the troop withdrawal it was not defaulting on its obligations. Yet Obama as has taken up the campaign for a nuclear-free world, "it could also be interpreted that further nuclear disarmament could be being considered," Nassauer said.

German military commitment

American troops in Germany have become something of a tradition to many Germans

Nassauer also predicted a new division of responsibilities for Germans in America's military strategy.

"One can assume that the Americans will encourage the Germans to assume a proportionate share of the military defense burden," he said, adding that this would mean German armed forces would have to be more proactive in maintaining world order.

SWP security expert Oliver Thränert reached a similar conclusion.

"Europe will remain an important partner for the United States," he said. "But when conflicts occur on our own doorstep in the future, Europe will have to resolve them alone."

Author: Arne Lichtenberg / ccp, rm

Editor: Sean Sinico