Key insights
- The US may not definitively cancel the deployment of Tomahawk missiles to Germany despite troop reductions. While European nations are planning to procure similar systems, the initial plan aimed to deter Russia. The uncertainty adds to existing US-Europe tensions, potentially impacting market sentiment negatively, though the direct financial impact is limited.
BERLIN, May 4 (Reuters) - The German defence ministry said on Monday that there had been no "definitive cancellation" by the United States of a plan devised under former president Joe Biden to deploy a battalion with long-range Tomahawk missiles to Germany.
The comment comes after Washington announced last week that it would reduce its military presence in Germany by 5,000 soldiers, which was widely interpreted to include cancellation of the planned deployment of weapons.
"We’re not talking about a definitive cancellation," the defence ministry spokesperson said, adding that the weapons were "meant to be stationed (in Germany) and may well still be."
He said that in any case, there were already plans underway by European nations to procure weapons systems that would fill the gap.
The Pentagon announced the drawdown from Germany, its largest European base, on Friday, as a rift over the Iran war and tariff tensions placed further strain on relations between the U.S. and Europe.
The long-range fires had been due to form a significant extra element of deterrence against Russia while Europeans developed such long-range missiles themselves.