Panetta Candidate to Replace Gates

Bloomberg reports:

Obama administration officials are considering Central Intelligence Agency director Leon Panetta, Democratic Senator Jack Reed of Rhode Island and Navy Secretary Ray Mabus as possible replacements for Defense Secretary Robert Gates, according to an administration official.

Michele Flournoy, undersecretary of defense for policy, is also among the candidates being looked at to succeed Gates, who previously has said that he plans to retire sometime this year, according to the official, who spoke on condition of anonymity to talk about the selection process.

President Barack Obama will be replacing his Pentagon chief as the U.S. undergoes a transition in Afghanistan and winds down operations in Iraq. Obama has set mid-2011 as the target for the beginning of a withdrawal of U.S. forces from Afghanistan, pending an assessment of security conditions.

Former U.S. Defense Secretary William Cohen said he considers Panetta to be the leading candidate for the post, given his background leading the spy agency and his experience as a member of Congress from California from 1977 to 1993 and as director of the Office of Management and Budget in President Bill Clinton’s administration. He also served as Clinton’s chief of staff.

“He understands budgets, and budgets are going to be crucial as we move forward in terms of how you reconcile national security requirements with our ability or willingness to pay for them,” Cohen said.

Retired Army General Barry McCaffrey agreed that Panetta was the leading candidate. Panetta understands Congress and has experience on international affairs, McCaffrey said, calling him one of the most “astute individuals I’ve ever worked with.”

“It’s very likely he’s at the top of the list,” said McCaffrey, who was head of U.S. Southern Command from 1994 to 1996 and still consults with the military.

Panetta, 72, and Reed, 61, a graduate of the U.S. Military Academy at West Point, New York, and a member of the Senate Armed Services Committee, likely would be speedily confirmed by the Senate if nominated, Cohen said.

“There’s no question about Jack being quite popular with his colleagues,” he said.

While Reed would have the confidence of both the military and the White House, McCaffrey said, a drawback to nominating him is the loss of a senior Democratic lawmaker versed in defense and foreign policy.