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**U.S. Defense Secretary Pete Hegseth's plan to announce additional troop cuts in Europe was blocked by senior White House officials, exposing internal divisions ahead of next week's NATO summit in Ankara where all 32 member states will gather.** Hegseth planned to tell NATO's top military chiefs in Brussels last month that the U.S. was preparing further reductions beyond the canceled armored brigade rotation to Poland and the earlier withdrawal of an infantry brigade from Romania, people familiar with the matter said. The proposal was nixed after it was shared with National Security Advisor Marco Rubio and other senior officials, the people said. Hegseth instead announced a six-month review of U.S. force posture in Europe. "The important aspect of the meeting is to what extent the rift between the United States and Europe can be healed or narrowed during the summit," said Fatih Ceylan, a former Turkish ambassador to NATO and security analyst at the Ankara Policy Center. "We should not expect miracles, but nonetheless if there is a convergence of ideas emphasizing the importance of NATO, that should be seen as a success." The internal policy split comes as Trump has threatened to withdraw from NATO and reduce U.S. troop levels, criticizing allies for failing to support the U.S.-led war on Iran and efforts to reopen the Strait of Hormuz. The Pentagon's defense strategy issued in January signaled the U.S. would reduce its military presence in Europe as it focuses more on the western Pacific and the Western Hemisphere, giving European nations primary responsibility for the continent's conventional defense. The last major U.S. troop reduction in Europe came in 2020 when the Trump administration withdrew about 12,000 troops from Germany, cutting the total to roughly 35,000 before the Ukraine war prompted a buildup to approximately 100,000. The summit will test whether the alliance can project unity despite Trump's mercurial approach. NATO officials are considering scrapping plans to hold another summit next year in Albania, officials said. U.S. troop levels and allied military spending are expected to be central topics when Trump meets with leaders in Ankara on July 7-8. **Turkey's Balancing Act** Turkey, a NATO member since 1952 with the alliance's second-largest army after the United States, has positioned itself as both a reliable ally and an independent actor. President Recep Tayyip Erdogan described Turkey as working to ensure the Ankara summit "will stand as a reference point in NATO's history." Yet Turkey has often acted independently, frustrating allies by refusing to participate in sanctions on Russia, engaging in disputes with Greece, and purchasing Russian S-400 missile defense systems — a move that led to its expulsion from the U.S.-led F-35 program in 2019 and forfeiture of $1.4 billion in down payments. Turkey also delayed Finland and Sweden's NATO membership until securing concessions on counter-terrorism cooperation and blocked the appointments of NATO chiefs in 2009 and 2024. More recently, Turkey has leaned closer to the alliance. NATO missile defenses intercepted four missiles fired from Iran into Turkish territory during the Iran war, and Italy and Germany deployed air defense systems to help Turkey respond to heightened threats weeks before the summit. Trump has also signaled a willingness to rebuild defense ties, notifying Congress of his intention to sell Turkey roughly 80 F-110 aircraft engines for its KAAN fighter program, while Vice President JD Vance suggested the administration is examining whether Turkey could rejoin the F-35 program. "Turkey wishes to distinguish itself as a foreign policy actor that is independent of NATO and the West," wrote Hamish Kinnear, principal Middle East and North Africa analyst at risk intelligence company Verisk Maplecroft, in a note. "While Turkey is not abandoning its balancing approach, it is tilting closer to the West, primarily because of NATO." **Security Crackdown and Domestic Control** In Ankara, authorities have deployed tens of thousands of police and placed air defenses on high alert, while banning demonstrations, concerts, and graduation ceremonies during the summit. Security units have detained more than 200 people suspected of links to extremist groups, while a Turkish court blocked access to websites critical of NATO on security grounds. Several journalists from opposition-leaning media organizations were denied accreditation to cover the summit. Henri J. Barkey, professor emeritus at Lehigh University, wrote that the summit will bestow two major prizes on Erdogan: Trump's appearance validating his global role for outside audiences and his autocratic rule for his own population. "Beyond the daily persecution, hundreds have been arrested ahead of the summit, yet the U.S. government, unlike any predecessor, has stayed utterly silent," Barkey wrote for the Council on Foreign Relations. The summit's outcome will shape defense sector sentiment and European security markets. The policy instability over U.S. troop levels introduces uncertainty for defense contractors with significant NATO exposure, including Lockheed Martin, RTX, and Northrop Grumman, while the broader geopolitical risk could affect European equities and the euro. If the summit produces a unified front on defense spending commitments, it could stabilize sentiment; if Trump's criticism of allies dominates, the risk premium on European defense and currency markets may widen further. This article is for informational purposes only and does not constitute investment advice.
**The Pentagon's top brass is being hollowed out at a pace unseen in modern American history, with Defense Secretary Pete Hegseth forcing out more than two dozen senior officers in a campaign that risks politicizing the military chain of command during an active war with Iran.** Hegseth has fired or forcibly retired 24 generals and senior commanders since President Donald Trump returned to office in January 2025, according to a tally by the Guardian. About 60% of those removed have been Black or female, a pattern critics say reflects the administration's campaign against diversity, equity and inclusion initiatives across the armed forces. "The senior leadership of the US military has been substantially damaged," said Paul Eaton, a retired Army major general who commanded US forces after the 2003 invasion of Iraq. "You develop a fracture in the cohesion of the people at that level. It is if you haven't been purged, you wonder if you are next if you say the wrong thing." The latest casualty is Gen. Chris Donahue, the top US Army commander in Europe, who will relinquish his four-star post at a ceremony in Germany on July 2 — his European assignment cut short mid-tour. Donahue, who led Delta Force commandos against Islamic State and was the last American service member to depart Afghanistan in 2021, submitted retirement papers at the Pentagon's request, according to the Wall Street Journal. His command is being downgraded from four stars to three as part of Hegseth's broader push to reduce the general and flag officer corps by 10% overall and 20% for four-star positions. Donahue joins a growing list of high-profile ousters. In April, Hegseth fired Gen. Randy George as Army chief of staff after the general reportedly refused an instruction to strike four officers — two Black men and two women — from a promotion list. Gen. CQ Brown, the first Black chairman of the Joint Chiefs of Staff, was terminated in February 2025 and replaced by Dan Caine, a retired three-star general who had to be quickly promoted to four-star rank. Adm. Lisa Franchetti, the first woman to serve as chief of naval operations and sit on the Joint Chiefs, was also removed. **The purge extends beyond combat commands.** Hegseth has fired top military lawyers for the Army, Navy and Air Force, along with the directors of the Defense Intelligence Agency and the NSA. The New York Times reported in November that Hegseth has fired or sidelined dozens of officials "with little explanation," creating "an atmosphere of anxiety and mistrust" within the department. The timing raises acute concerns. The Pentagon has told senators it needs roughly $80 billion to cover the cost of the US war against Iran, according to the Associated Press. The Senate on Tuesday approved a war powers resolution seeking to block military action against Iran by a 50-48 vote — the first time the chamber has passed such a measure — reflecting growing unease among lawmakers about the conflict and the deal Trump struck to end it. Five former defense secretaries, including retired Gen. Jim Mattis who served under Trump, condemned the pattern of firings as "reckless" in a joint letter to Congress last year. They warned that "talented Americans may be far less likely to choose a life of military service if they believe they will be held to a political standard" and that "those currently serving may grow cautious of speaking truth to power." The Reagan Institute's December poll found public confidence in the military has fallen to roughly 50%, down from 70% in 2018. The partisan gap has widened sharply: confidence among Democrats dropped to 33%, while Republican confidence rebounded to 67%. For defense contractors, the leadership vacuum creates uncertainty around procurement priorities and strategic direction. Lockheed Martin Corp., Northrop Grumman Corp. and RTX Corp. — the three largest US defense firms by revenue — face an unpredictable Pentagon that has sidelined experienced commanders in favor of less accomplished political loyalists. The $80 billion Iran war supplemental, if approved, would provide a near-term revenue catalyst, but the longer-term risk is a military whose senior leaders are selected for ideological alignment rather than operational competence. Hegseth, a former Fox News host and National Guard infantry major, has focused much of his energy on issues of personal interest — shaking up the Pentagon's chaplain services and publicly invoking that "Christ is king" in meetings. Most day-to-day operations are overseen by Deputy Defense Secretary Steve Feinberg, a billionaire investment firm owner. Insiders describe Hegseth as increasingly isolated, surrounded by a small coterie including his wife Jennifer, his brother Phil, and personal attorney Tim Parlatore. The last time the US military experienced a comparable leadership shake-up was in 1949 when Defense Secretary Louis Johnson purged senior Navy officials over the "Revolt of the Admirals" — a dispute about strategic bombing priorities that led to the resignation of the Navy secretary and the firing of the chief of naval operations. That episode was resolved within months. The current purge has now been underway for 16 months with no end in sight. *This article is for informational purposes only and does not constitute investment advice.*