The need for U.S. involvement in European security affairs did not end with the Cold War. History provides evidence to support this. Periods in which the U.S. pursued neutralist or isolationist policies towards Europe resulted in instability on the continent. However, since 1949. the U.S. has pursued an alliance policy and Europe has experienced relative peace. With the end of the Cold War, the United States must reevaluate its interests in Europe. These interests include the future of Russia, the stability of Eastern and Western Europe, the future of European security institutions, and a place at the European economic and political table for the U.S. These interests must be kept in mind as the United States analyzes associated issues regarding further reductions in the defense budget and military presence in Europe These issues include the U.S. security guarantee to Europe, the cost of U.S. involvement in the Atlantic Alliance, the search for a "peace dividend." and European support for a continued U.S. military presence on the continent. After examining these issues, the thesis concludes that further reductions in the U.S. defense budget and military presence in Europe must proceed at a responsible rate. if the U.S. is to avoid past mistakes and preserve European stability.