the a nato alliance between between nato and the soviet union. washington struggles with budget cuts and shifts its focus to asia. what is next for the atlantic alliance? our next guest is fred kemp, president and ceo of the atlantic do council, an organization born in 1961 to foster close relations between the united states and europe. fred is an editor and the author of berlin 1961, kennedy, kruschev. >> i am a member of the atlantic counsel. >> and we are proud of it. >> the administration is in the midst of a strategic pivot from afghanistan and iraq over to asia. at the same time, there are growing calls from the political sphere and congress especially, let's pull american troops outside of europe. you think that that's a mistake. why? >> the term strategic pivot is a mistake. perhaps one moves troops outside of europe, but one has to think of the strategic pivot not of the united states, but of the west. largest economic space in the world. >> 450 million people. >> absolutely. whatever you measure, if we are pivoting, it is because it is the biggest shift of political influence and economic influence since the 18th century. from west

spirit if we are able to demonstrate we can do both, i think it would be good for the atlantic relationship and the alliance>> all right, thank you very much for joining us on "gmt." still to come on the program -- winning the smartphone battle. samsung says it is on track for record quarterly profits as the galaxy outsells the iphone. hungary's center-right government is continuing to defend the new constitution which critics say the road to democracy. alarms have also been expressed internationally. the european union is examining whether the changes brought in this very week break eu law, but there are signs the government in budapest may be prepared to negotiate some or all of the changes. >> we found a little cheer on the number 49 tram across the danube. no wonder. hungary's economy is in a slump and some accuse the government of turning back democracy. >> there you go. >> ministers, though, are not shy of showing off their new constitution. as for the idea is anti- democratic -- >> it is an absence charge -- even the question is bizarre. in the hearts of europe, finally we are able to get back on tra