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Massive US troop withdrawal could cost Germany thousands of jobs

According to a study conducted by the ZEW economic research center (Mannheim) and the University of Cologne, a large-scale withdrawal of US troops from Germany could result in the loss of several thousand jobs in the German economy.

The study assesses the impact of a potential significant reduction in the American military contingent on employment in regions where US bases are located. American service members, civilian personnel, and their families create substantial demand for goods and services, supporting jobs in retail, services, construction, and logistics.

According to preliminary estimates by ZEW and University of Cologne experts, a large-scale troop withdrawal could lead Germany to lose between several thousand and more than 10,000 jobs — both directly and indirectly. The hardest hit would be the states of Rhineland-Palatinate, Bavaria, and Baden-Württemberg, where most US military facilities are concentrated.

“American bases are not only a military presence, but also an important economic factor for local communities. Their drawdown will create noticeable problems in the labor market in the surrounding regions,” the study’s authors note.

The issue of a possible withdrawal or reduction of US troops in Europe is being actively discussed against the backdrop of statements by the new US administration about reallocating military spending and calls for European allies to increase their own defense expenditures.

The German government has not yet officially commented on specific figures regarding potential losses, but Berlin acknowledges that the presence of US troops is of significant economic importance for several regions of the country.