Approved for public release, distribution is unlimited / There has been much speculation and editorializing over the deterioration of trans-Atlantic relations, specifically between the United States and Germany, primarily as a result of the US-led war against Iraq beginning in March 2003. What can account for this so-called trans-Atlantic rift and the unhealthy US-German relationship of late? This thesis argues that this deterioration in trans-Atlantic relations stems from a profound misunderstanding of strategic culture. Specifically, this thesis takes the position that a failure to appropriately understand what Germany's unique strategic culture has been a leading cause of the present uncomfortable relationship between the United States and Germany. This thesis shows how a nation's values, beliefs, and preconceptions, can have a powerful influence upon foreign and security policy decisions. It highlights the importance of strategic culture as an important influence upon a nation's efforts to transform its armed forces. This thesis includes an examination of the various definitions and theories surrounding strategic culture and its impact upon the policy making process. It explores German defense reform since the end of the Cold War, and includes a look at how these issues have influenced German military transformation efforts since 1990. This case study concludes with a look at the current challenges facing German defense transformation, and makes observations about how a better understanding of Germany's national security culture can contribute to improved US-German and trans- Atlantic relations. / Major, United States Army

Europeans have been spending increasingly less on defense. This trend is puzzling on two accounts. Empirically, 30% of defense spending cuts correlated with a net increase in military capacity, contradicting conventional predictions of military degradation under budgetary pressures. Theoretically, it is unclear why cuts happen and whether conscious policy choices can translate spending cuts to favorable military capacity outcomes. Is the decline in defense spending a strategic choice to demilitarize, or is it intentionally managed to improve military capacity? I evaluate three conditions under which reductions in military expenditures can lead to favorable outcomes in military capacity: defense reform, defense collaboration and buck-passing. I investigate 30 defense spending cut periods (DSCP’s) in the 27 European states between 2000 and 2012. This group of states presents a hard case for my argument: decline in European military resources is most-likely intentional. Through Qualitative Comparative Analysis, I group DSCP’s by military capacity outcomes. I then evaluate presence of the three mechanisms by operationalizing necessary but insufficient conditions, and determine whether these potential explanations are sufficient by process-tracing select case studies. I find that defense reform presents the most compelling, collective collaboration less compelling and buck-passing least compelling explanation of a potentially non-detrimental relationship between DSCP’s and military capacity. Under declining defense spending, governments routinely chose to produce savings by eliminating redundancies, consolidating structures, and reinvested savings in operational readiness and quality of military forces. States increased defense collaboration in 47.3% of the DSCP’s, but initiatives still appear divorced from affecting robust military improvements at the national level. Under declining defense spending, buck-passing increased only modestly (8%-13%), with ongoing deployments supporting continued investment in the military. These findings imply that defense spending decline does not mean a European choice to demilitarize, but a choice to reform, sometimes in tandem with defense collaboration or buck-passing.

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