Germany's defense budget will be drastically cut due to the country's fiscal problems, German Defense Minister Karl-Theodor zu Guttenberg has said.

Guttenberg told reporters after a major speech to soldiers in Hamburg, "A symbolic cutting of a few individual projects or orders will not be enough, not by a long shot. If one looks at the current numbers by the Finance Ministry there is a need for a paradigm shift" when it comes to defense spending. Guttenberg said the German defense budget, $38.5 billion for 2010, will have to be cut by around $1.3 billion per year.

Current Bundeswehr missions, including the one in Afghanistan where Germany has nearly 5,000 troops, wouldn't be affected by the cuts because they are "basic issues of our national security," the minister further added.

He was ready to cut his budget if all other ministries are taking similar steps, Guttenberg said.

He said, "My ministry is hopefully part of a comprehensive fiscal prudence program and not the only victim of these cuts."

In 2004, the Bundeswehr had announced that it would streamline its forces, agreeing to cut more than 100 bases to a total number of 400 bases in Germany. It has already cut most of the bases and some troops, with a total force of 254,000.

Guttenberg, in a bid to better control procurement spending, also called for improved management of European military projects, citing the specific example of the A400 military freighter plane.

Guttenberg further said that the project was agreed in 2003, with European aviation giant Airbus ordered to construct 180 planes at a fixed price of $29 billion. The project is expected to cost around 50 percent more than original estimates and is three to four years behind schedule. The cost and delivery developments of the A400 project and others are "not tolerable." (With Inputs from Agencies)