Defense cuts won’t cause pain in short term

Panetta's team must conduct strategic review first

Despite the buzz about painful military spending cuts that will occur over the next decade, Defense Department and industry officials expect only marginal spending reductions over the next two to three years, the Wall Street Journal reports.

Deep cuts that might impact the businesses of the nation’s top contractors will have to await a strategic review of the DOD spending plans by incoming Defense Secretary Leon Panetta, whom the Senate has confirmed to the position.

Even after that, the defense industry is likely to avoid the kind of debilitating cuts -- in some cases as much as 50 percent -- in weapons programs that occurred after the Cold War, said David Van Buren, the U.S. Air Force’s Service Acquisition Executive, June 21 at the Paris Air Show.

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