Source: USA Today
The Market Online - At The Bell

Join our daily newsletter At The Bell to receive exclusive market insights

  • Around 12,000 U.S. troops will be withdrawn from Germany amid tensions between the two countries about NATO spending
  • The withdrawal will cost the U.S. billions and is expected to take several years to complete
  • However, the U.S. President insists it is necessary, as Germany is “taking advantage” of the country
  • In particular, Donald Trump has criticised Germany for not spending two per cent of GDP on defence
  • The withdrawal will threaten the future of NATO – an alliance of world powers forged post-WWII

The U.S. is pushing ahead with its plan to withdraw around 12,000 troops from Germany, threatening the future of NATO.

U.S. President, Donald Trump, first flagged the withdrawal after complaining that Germany isn’t spending a promised two per cent of its GDP on defence.

In giving the go-ahead on Wednesday, President Trump said the country was “taking advantage of the U.S.”

“We spend a lot of money on Germany, they take advantage of us on trade and they take advantage on the military, so we’re reducing the force,” he said.

The move is a big blow for NATO — the North Atlantic Treaty Organization — a group set up post World War Two to protect Europe from future threats.

Speaking on the withdrawal’s effect on NATO, the U.S. President said it wasn’t America’s responsibility anymore, despite the country being a founding member of the organisation.

“They’re there to protect Europe, they’re there to protect Germany, and Germany is supposed to pay for it,” he said.

“We don’t want to be responsible anymore,” he added.

The withdrawal has already been widely panned by both sides of U.S. politics, as well as by Army officials, who see it as a threat to both America and Europe’s security.

Republican Congressman Mac Thornberry organised a letter last month, signed by 21 others, calling for President Trump to re-think the move.

His call was echoed by fellow Republican Mitt Romney, a staunch critic of Trump, who said the withdrawal would hand Russia a distinct military advantage.

Along with the political consequences, the drawdown of troops is also set to cost the U.S. billions.

Defence officials said they would need to build new barracks across Europe and the U.S. to accommodate for the thousands of troops being moved.

They also revealed the constructions would likely take years to complete.

More From The Market Online
AI concept

The great AI scare sell-off is still permeating Wall Street; a speculative blog from the not-so-distant future stands as the latest culprit

The ongoing tech sell-off in the United States, ironically driven by the larger AI thematic itself, continues to define
US and Aus flag

The XJO benefitted from geopolitical calm last week. New tariff fears perhaps feel more familiar

Last week, I wrote that the ASX200 was having a good week, where Australian investors were reacting to Australian earnings reports and how

Okay, so just where is gold heading? Experts say its nowhere near finishline yet

Leading industry, government and investment groups are still confident that the gold’s bull run is nowhere…
Koala share trading AI

The ASX 200 is up over 4% YTD. What EOY targets are floating around?

It’s been a pretty good year for the ASX200 so far, helped greatly by the ‘commodity supercycle’ narrative – which isn’t really a