Pirate's Cove

This would be the war that Biden pushed Putin to start. Weakness due to Biden’s disastrous Afghanistan withdrawal. Speeches almost double-dog daring Putin to invade. And now

Europe accuses US of profiting from war

Nine months after invading Ukraine, Vladimir Putin is beginning to fracture the West.

Top European officials are furious with Joe Biden’s administration and now accuse the Americans of making a fortune from the war, while EU countries suffer.

“The fact is, if you look at it soberly, the country that is most profiting from this war is the U.S. because they are selling more gas and at higher prices, and because they are selling more weapons,” one senior official told POLITICO.

The explosive comments — backed in public and private by officials, diplomats and ministers elsewhere — follow mounting anger in Europe over American subsidies that threaten to wreck European industry. The Kremlin is likely to welcome the poisoning of the atmosphere among Western allies.

“We are really at a historic juncture,” the senior EU official said, arguing that the double hit of trade disruption from U.S. subsidies and high energy prices risks turning public opinion against both the war effort and the transatlantic alliance. “America needs to realize that public opinion is shifting in many EU countries.”

Well, look, it’s not America’s fault that EU countries were, for one, way, way too dependent on Russia for energy. Remember when they laughed at Trump when he said so?

The U.S. rejected Europe’s complaints. “The rise in gas prices in Europe is caused by Putin’s invasion of Ukraine and Putin’s energy war against Europe, period,” a spokesperson for Biden’s National Security Council said. Exports of liquefied natural gas from the U.S. to Europe “increased dramatically and enabled Europe to diversify away from Russia,” the NSC spokesperson said.

Perhaps EU nations should have been working to develop their own natural gas supplies, since wind and solar are unreliable. More nuclear if they do not want coal.

As they attempt to reduce their reliance on Russian energy, EU countries are turning to gas from the U.S. instead — but the price Europeans pay is almost four times as high as the same fuel costs in America. Then there’s the likely surge in orders for American-made military kit as European armies run short after sending weapons to Ukraine.

Bummer.

When EU leaders tackled Biden over high U.S. gas prices at the G20 meeting in Bali last week, the American president simply seemed unaware of the issue, according to the senior official quoted above. Other EU officials and diplomats agreed that American ignorance about the consequences for Europe was a major problem.

Wait, they expected Joe to have a clue as to what’s going on in Europe when he’s meeting with them all for the G20? Really?

The growing dispute over Biden’s Inflation Reduction Act (IRA) — a huge tax, climate and health care package — has put fears over a transatlantic trade war high on the political agenda again. EU trade ministers are due to discuss their response on Friday as officials in Brussels draw up plans for an emergency war chest of subsidies to save European industries from collapse.

“The Inflation Reduction Act is very worrying,” said Dutch Trade Minister Liesje Schreinemacher. “The potential impact on the European economy is very big.”

So, not only does the IRA not do anything for inflation, it could cause a lot of issues on trade between the US and our allies in Europe. Great job.

Despite the energy disagreements, it wasn’t until Washington announced a $369 billion industrial subsidy scheme to support green industries under the Inflation Reduction Act that Brussels went into full-blown panic mode.

“The Inflation Reduction Act has changed everything,” one EU diplomat said. “Is Washington still our ally or not?”

Yeah, that does not sound good. Of course, there are pretty much almost no named sources in this whole piece.

But the EU sees that differently. An official from France’s foreign affairs ministry said the diagnosis is clear: These are “discriminatory subsidies that will distort competition.” French Economy Minister Bruno Le Maire this week even accused the U.S. of going down China’s path of economic isolationism, urging Brussels to replicate such an approach. “Europe must not be the last of the Mohicans,” he said.

Ouch. That’s why you read massive bills and study them to see what the results can look like, instead of passing them to see what’s in them.