–‘Leaner’ Military Will Have Smaller Ground Forces; Cut Responsibly
–Details to be Announced With 2013 Fiscal Year Budget Proposal Feb. 6

By Heather Scott

WASHINGTON (MNI) – President Barack Obama unveiled a plan Thursday
to restructure the nation’s military and slow the growth in defense
spending, but which he said will not sacrifice the nation’s security.

Details on the changes and cuts will be announced in coming weeks,
he said, as part of the White House’s budget proposal for the 2013
fiscal year, but the overall defense budget will still grow and
“continues to be larger than roughly the next 10 countries combined.”
The White House is expected to release the budget Feb. 6.

In a speech at the Pentagon, Obama said the defense review hinged
on the fact “we have to renew our economic strength here at home, which
is the foundation of our strength around the world. And that includes
putting our fiscal house in order.”

The Budget Control Act passed by Congress last year “mandates
reductions in federal spending, including defense spending. I’ve
insisted that we do that responsibly,” he said.

The review aimed to “clarify our strategic interests in a
fast-changing world … because the size and the structure of our
military and defense budgets have to be driven by a strategy, not the
other way around.”

Ground forces in the Army and Marines will be reduced and “We’ll
continue to get rid of outdated Cold War-era systems so that we can
invest in the capabilities that we need for the future,” Obama said.

But “we will be strengthening our presence in the Asia Pacific, and
budget reductions will not come at the expense of that critical region.”

Defense Secretary Leon Panetta said the changes and cuts will lead
to “some additional but informed risk” which will “inevitably impact
size and capability of military.”

Panetta called on Congress to “do its duty” and approve the
changes, and not allow the budget sequester process — required after
the so-called Super Committee failed to agree on a package of at least
$1.2 trillion in deficit cuts for the 2012-2021 period.

The failure triggered a budget enforcement measure that will secure
$1.2 trillion in budget savings through across-the-board cuts. The cuts
are designed to be equally divided between defense and non-defense
programs but would exempt Social Security, Medicaid and low-income
programs. Those cuts are scheduled to begin in January 2013.

Obama also issued a warning to potential enemies: “our military
will be leaner, but the world must know the United States is going to
maintain our military superiority with armed forces that are agile,
flexible and ready for the full range of contingencies and threats.”

** Market News International Washington Bureau: 202-371-2121 **

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