The Dutch government condemned the comments by Gen John Sheehan, a former Nato commander and senior marine officer, as outrageous.
Gen Sheehan made the remarks at a Senate hearing where he argued against plans by President Barack Obama to end a ban on allowing gays to serve openly in the US military.
Gen Sheehan said that after the end of the Cold War, European militaries changed and concluded "there was no longer a need for an active combat capability."
He said this process included "open homosexuality" which resulted in "a focus on peacekeeping operations because they did not believe the Germans were going to attack again or the Soviets were coming back."
