The U.S. Military and Government Presence: Ongoing Partnership

During the four decades of the Cold War, the U.S. military in Germany was a large geographically dispersed defensive force focused on deterring a Soviet armored thrust into Western Europe. The end of the Cold War and a growing need to respond to regional contingencies led the U.S. military to transform its forces in Germany into a more modestly sized, geographically concentrated, mobile response force capable of rapid force projection and out-of-area operations. This transformation, much of which occurred during the first half of the 1990s, resulted in a significant reduction of the U.S. military presence in Germany. This phenomenon led to a commonly held, but incorrect, view that the United States and Germany are less tightly connected than before.

During a five-year period from 1990 to 1995, the U.S. closed 88% of its bases and smaller facilities in Germany and significantly scaled back its presence in remaining locations. U.S. military expenditures in Germany decreased from about $10 billion to $5 billion in this period. Since 1995, however, the U.S. military presence has stabilized and continues to be an important source of revenue for four Länder (Baden-Württemberg, Bavaria, Rhineland-Palatinate and Hesse). Including its soldiers, the U.S. Army employs more than 35,000 people in Bavaria. Rhineland-Palatinate (home to Ramstein and Spangdahlem airbases) receives the lion's share of total expenditures ($2.4 billion out of the total of $5 billion spent by the U.S. military in 2007). Note: the $5 billion does not include U.S. dollar salaries paid to U.S. military and civilian employees who spend a substantial portion of their income on the German economy.

Less well known is the presence of German military personnel in the United States. Germany now has approximately 1,350 personnel in some 40 separate locations. The majority of these personnel serve as liaison officers at various U.S. military commands or attend training at U.S. military locations in half of the 50 states.

The U.S. Embassy and the five U.S. Consulates in Germany have contributed an additional $700 million in recent years and employ more than 700 locally engaged staff throughout Germany. In addition, more than 40,000 residents in Germany receive U.S. retirement and other benefits totaling more than $250 million annually.