WASHINGTON, (Reuters) – President Barack Obama will today name CIA Director Leon Panetta to become U.S. defense secretary and nominate General David Petraeus, who is running the war in Afghanistan, to take over the spy agency.
The shakeup ahead of the 2012 presidential election could have broad implications for the Obama administration, which is seeking deeper Pentagon spending cuts and aims to start drawing down U.S. forces from Afghanistan in July.
Panetta, a Democratic Party insider and former White House budget chief, is expected to oversee steady declines in Pentagon spending that diverts weapons dollars to the Treasury Department to help reduce the U.S. deficit.
The departure of Petraeus, considered one of the top U.S. commanders, mixing political savvy with military know-how, also raises big questions about the future of the unpopular, nearly decade-old war effort in Afghanistan.
Analysts fear his departure could derail momentum and undermine efforts to improve U.S. ties with Pakistan.
The White House declined formal comment on the changes, but a senior Obama administration official said Petraeus would retire from the military to take the CIA job.
Details of the changes were confirmed on Wednesday by several U.S. officials.
The shakeup will also include Obama’s nomination of the trouble-shooting diplomat Ryan Crocker — who has served as ambassador to Iraq, Pakistan, Syria, Kuwait and Lebanon — as the U.S. ambassador to Afghanistan.
Lieutenant General John Allen, deputy commander of U.S. Central Command, will succeed Petraeus as head of the Afghan war effort, U.S. officials said.
