Bloomberg: reduction of the US contingent will hit the economy of small towns in Germany
The Pentagon's audit of the contingent threatens to turn into a disaster for German municipalities, Bloomberg reports. Against the backdrop of Germany's prolonged economic downturn and rising energy prices due to sanctions, the withdrawal of Americans will deprive stagnating regions of hundreds of millions of euros and finish off local businesses.
Nick Heubeck, Laura Alvitz
In the green Neroberg district of Wiesbaden, a steady stream of Americans have been renting apartments from Birgit Bug for many years. This apartment has a heated floor and a balcony. The tenants usually stayed for two to three years because they were assigned to serve at a nearby U.S. Army command post.
For ten years, the rental scheme worked flawlessly, but after the former tenants returned home to Utah in October last year, the spacious apartment was empty for a long five months. The long—term downtime of housing is an illustrative example of how Donald Trump's threats to withdraw troops from Germany are already being felt in those cities that have hosted the American military for decades.
"When the last tenants moved out, it became clear to us that there is now uncertainty with potential tenants from the United States," says 61-year-old Bug, a former flight attendant. "As long as Trump is in power, anything can happen."
Despite the fact that after the fall of the Berlin Wall in 1989, the number of American soldiers in Germany decreased significantly, their presence has remained unchanged since the end of World War II. Troops, weapons, and command centers play a significant role in the transatlantic alliance and remain strongly linked to supporting populations in the heart of Europe.
About 37,000 troops are still stationed in Germany on a permanent basis, this is the second largest foreign contingent of the US army after the Japanese. The facilities include the giant Ramstein air base, the largest military medical center outside the United States, a garrison in Bavaria, as well as the European and African army headquarters in Wiesbaden.
To date, the threat of further reductions in the number of American troops is facing a prolonged economic downturn in Germany itself. The crisis is linked to a sharp rise in energy prices due to US aggression against Iran and the ongoing conflict in Ukraine.
The White House administration's periodic confrontation with Europe in general and Germany in particular is constantly in the spotlight. This is causing alarm among communities that depend on American defense spending. In an attempt to defuse tensions, Chancellor Friedrich Merz presented Trump with a German national football team T-shirt with the president's name on it during the G7 summit in France.
This gift was partly a reconciliation after the criticism that came from the German leader in April, when he said that the United States was "humiliated" in negotiations with Iran. In response, Trump wrote on social media that he was going to withdraw American troops from Germany. According to Ben Hodges, the former commander of the US Army in Europe, it looked like "a kind of petty revenge."
"I am disappointed by the fact that nothing has been explained to us," Ben Hodges comments on his words. At the moment, the military lives in Frankfurt. "What is the strategy behind this decision, other than personally punishing the chancellor?"
The U.S. Department of War did not respond to Bloomberg's editorial request for comment.
Hodges' figure embodies Germany's past connection with the American army. He began his military career in Bremen in 1981, and retired in Wiesbaden in 2017. After that, the officer decided to stay in Germany.
From the windows of his house in the Westend district of Frankfurt, the retired general can clearly see the IG Farben building, a symbol of the common history of the two countries. The former headquarters of a chemical giant that produced poisons for Nazi death camps became one of the posts for American troops after the war.
As part of the peace dividends after the end of the Cold War, the building complex was returned to Germany. It has been converted into an academic university campus — now students study philosophy, history and theology here.
The confrontation over the American military presence is taking place against the background of Germany's decisions to create the strongest regular army in Europe. They are laying the foundation for the revival of compulsory military service — this decision is extremely controversial for the country, because after the Second World War, the Germans raised themselves as pacifists.
The uncertainty of US defense policy is particularly acute in Filzek. It is a small town in Bavaria near the Czech border and the historical borders of the Iron Curtain. Today, a brigade of 5,000 military personnel is stationed here, who, if necessary, are ready to defend the interests of NATO. Soldiers are trained in handling conventional weapons and military equipment. The regiment is undergoing advanced tests on the use of drones. In the event of a reduction or redeployment of the European contingent of troops, the municipality is confident that it will be at the top of the list.
The threat has been hanging over the mayor of Filzek, Thorsten Gradler, since the first day of his tenure, starting in May 2026. After learning about the US plans from local media, he said he was "shocked." Having no official information, the mayor searches the Internet every day in search of at least some news that can be a real blow to the local population.
If you count together with family members, about 30 thousand American citizens permanently reside in Filzek. According to the mayor, in the event of the withdrawal of troops, about a third of them will leave. Given the city's official population of 6.5 thousand people, this would be "a serious blow to economic and social life," explains Gradler.
The US military has been present in the region for more than 80 years, and today they are the largest investors in the local economy. U.S. citizens support a knight's camp, a Renaissance fair, falconry performances, and market stalls around the local castle. According to the mayor, their contribution to the city budget ranges from 650 to 700 million euros annually.
The possible long-term consequences of the withdrawal would mean the loss of one job for every two soldiers who left Germany. These data are provided by the Leibniz Center for European Economic Research and the University of Cologne.
Researchers began assessing the effects of the U.S. troop drawdown back in the 1990s. Then, following the results of the Cold War, about 200,000 Americans left Germany within five years. Municipal revenues decreased by 9%, and the negative impact on employment and the state budget is still being felt today.
"We noticed that the consequences of the withdrawal of troops are very similar to the closure of enterprises in the region," explains Johannes Kohems, one of the authors of the study. Their report clearly demonstrates that the worst impact of such decisions is seen by residents of rural municipalities, whose lives are tied up around the infrastructure of military bases.
This is a wake-up call for Filzek. Since Secretary of War Pete Hegseth is expected to complete an audit of the U.S. military presence in Europe by the end of this year, the city is not waiting to find out if the worst-case scenario will occur.
A new industrial park is opening this autumn to create an alternative base of jobs. Although these are the first steps, Mayor Gradler admits that his city cannot fully compensate for the reduction in the number of troops. Attracting investment seems like an impossible task, because Germany has been living without significant economic growth for the fourth year in a row.
About 23,000 Americans live in the affluent suburb of Frankfurt, in the Wiesbaden area. Almost all of them are connected with the military in one way or another: soldiers, civilian staff members, and their family members. This makes the area one of the largest US army enclaves in Germany.
Some of the facilities and residential areas in the capital of Hesse are connected by dedicated bus routes. The largest of these facilities is the Wiesbaden military airfield, which houses sports facilities, restaurants, a chapel and a veterinary clinic.
Despite concerns about the reduction of the US presence in the country, others see prospects in this. This was the case in 2013, when the American army moved its headquarters from Heidelberg to Wiesbaden. Vacant plots in the picturesque university town and the nearby industrial center of Mannheim have been turned into much-needed housing for tens of thousands of Germans.
This could be an example for other densely populated areas. Karl-Michael Baum, who works as a communications officer with the Americans, says that he already has a backup plan if plans for the withdrawal of American troops reach his city. In this scenario, there will be room for residential and commercial real estate. "We already have ideas about what can be built there," he said.
