London Daily

Focus on the big picture.
Monday, Dec 04, 2023

Europe accuses US of profiting from war

Europe accuses US of profiting from war

EU officials attack Joe Biden over sky-high gas prices, weapons sales and trade as Vladimir Putin’s war threatens to destroy Western unity.
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.”

Another top official, the EU’s chief diplomat Josep Borrell, called on Washington to respond to European concerns. “Americans — our friends — take decisions which have an economic impact on us,” he said in an interview with POLITICO.

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.

The biggest point of tension in recent weeks has been Biden’s green subsidies and taxes that Brussels says unfairly tilt trade away from the EU and threaten to destroy European industries. Despite formal objections from Europe, Washington has so far shown no sign of backing down. 

At the same time, the disruption caused by Putin’s invasion of Ukraine is tipping European economies into recession, with inflation rocketing and a devastating squeeze on energy supplies threatening blackouts and rationing this winter. 

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. 

It's all got too much for top officials in Brussels and other EU capitals. French President Emmanuel Macron said high U.S. gas prices were not “friendly” and Germany’s economy minister has called on Washington to show more “solidarity” and help reduce energy costs. 

Ministers and diplomats based elsewhere in the bloc voiced frustration at the way Biden’s government simply ignores the impact of its domestic economic policies on European allies. 

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. 

"The Europeans are discernibly frustrated about the lack of prior information and consultation," said David Kleimann of the Bruegel think tank.

Officials on both sides of the Atlantic recognize the risks that the increasingly toxic atmosphere will have for the Western alliance. The bickering is exactly what Putin would wish for, EU and U.S. diplomats agreed. 

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."

"The U.S. is following a domestic agenda, which is regrettably protectionist and discriminates against U.S. allies," said Tonino Picula, the European Parliament's lead person on the transatlantic relationship.

An American official stressed the price setting for European buyers of gas reflects private market decisions and is not the result of any U.S. government policy or action. "U.S. companies have been transparent and reliable suppliers of natural gas to Europe," the official said. Exporting capacity has also been limited by an accident in June that forced a key facility to shut down.

In most cases, the official added, the difference between the export and import prices doesn't go to U.S. LNG exporters, but to companies reselling the gas within the EU. The largest European holder of long-term U.S. gas contracts is France's TotalEnergies for example. 

The NSC spokesperson quoted above added: "The increase in global LNG supplies, led by the United States, helped European allies and partners get storage levels to an encouraging place ahead of this winter, and we will continue to work with the EU, its members, and other European countries to ensure sufficient supplies will be available for winter and beyond.”

It’s not a new argument from the American side but it doesn’t seem to be convincing the Europeans. "The United States sells us its gas with a multiplier effect of four when it crosses the Atlantic," European Commissioner for the Internal Market Thierry Breton said on French TV on Wednesday. "Of course the Americans are our allies ... but when something goes wrong it is necessary also between allies to say it."

Cheaper energy has quickly become a huge competitive advantage for American companies, too. Businesses are planning new investments in the U.S. or even relocating their existing businesses away from Europe to American factories. Just this week, chemical multinational Solvay announced it is choosing the U.S. over Europe for new investments, in the latest of a series of similar announcements from key EU industrial giants. 


Allies or not?
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?”

For Biden, the legislation is a historic climate achievement. "While we understand that some trading partners have concerns with how the [electric vehicle] tax credit provisions in the IRA will operate in practice with respect to their producers, we are committed to continuing to work with them to better understand and do what we can to address their concerns," the NSC spokesperson said. "This is not a zero-sum game. The IRA will grow the pie for clean energy investments, not split it." 

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.

The EU is preparing its responses, such as a big subsidy push to prevent European industry from being wiped out by American rivals. "We are experiencing a creeping crisis of trust on trade issues in this relationship," said German MEP Reinhard Bütikofer. 

"At some point, you have to assert yourself," said French MEP Marie-Pierre Vedrenne. "We are in a world of power struggles. When you arm-wrestle, if you are not muscular, if you are not prepared both physically and mentally, you lose.”

Behind the scenes, there is also growing irritation about the money flowing into the American defense sector.

The U.S. has by far been the largest provider of military aid to Ukraine, supplying more than $15.2 billion in weapons and equipment since the start of the war. The EU has so far provided about €8 billion of military equipment to Ukraine, according to Borrell.

According to one senior official from a European capital, restocking of some sophisticated weapons may take “years” because of problems in the supply chain and the production of chips. This has fueled fears that the U.S. defense industry can profit even more from the war. 

The Pentagon is already developing a roadmap to speed up arms sales, as the pressure from allies to respond to greater demands for weapons and equipment grows.  

Another EU diplomat argued that “the money they are making on weapons” could help Americans understand that making “all this cash on gas” might be “a bit too much.” 

The diplomat argued that a discount on gas prices could help us to "keep united our public opinions” and to negotiate with third countries on gas supplies. “It’s not good, in terms of optics, to give the impression that your best ally is actually making huge profits out of your troubles,” the diplomat said.
Comments

Oh ya 1 year ago
The light finally came on. America blew up the pipeline to force Europe to buy more expensive LNG from them. America keeps pumping money into Ukraine to keep the war going. They keep the USD strong thus costing other countries huge amounts as that makes their currencies weak.
And also remember that Russia lost 20 million people in WWII fighting the NAZIS, and the are fighting the NAZIS again in Ukraine today. Did you have family fighting in WWII? fighting NAZIS, I did and thank Russia for their work today.
Ricco 1 year ago
Hahhaa everyone eventually wakes up

Newsletter

Related Articles

London Daily
Close
0:00
0:00
Ant and Dec, our favorite jungle jesters, have thrown a curveball. They're suggesting a 'politician-free' season of 'I'm A Celebrity. Get Me Out Of Here!'
You Are So Beautiful
Trump’s lawyers say he did not take an oath ‘to support the Constitution’
Postmodern Jukebox European Tour Version
Henry Kissinger, the influential American diplomat, Nobel Peace Prize laureate, and former Secretary of State, passed away at 100 at his Connecticut home.
An old French tune (by Georges Brassens) Pomplamoose ft. John Schroeder
Thai Deputy Prime Minister and Foreign Minister Dr. Parnpreeb Commends ICRC's Role in Hostage Release
Sattahip Motor Show 20
Sam Bankman-Fried, founder of the crypto exchange FTX who was convicted of fraud earlier this month, is adjusting to his new life in the detention center where he awaits sentencing.
SONATE AU CLAIR DE LUNE - Moonlight sonata
Sam Bankman-Fried, founder of the crypto exchange FTX who was convicted of fraud earlier this month, is adjusting to his new life in the detention center where he awaits sentencing.
A kiss to build a dream on
The political network founded by the billionaire industrialist brothers Charles and David Koch has endorsed Nikki Haley in the Republican presidential nominating contest
Wonderful Tonight - Eric Clapton (Boyce Avenue acoustic cover)
Charlie Munger, Warren Buffett's longtime investing partner, dies at 99
Mean Blues
Robert De Niro told an awards ceremony a speech he was reading had been edited without his knowledge, removing critical comments about Donald Trump
La Chansonnette
Standard Chartered is in the early stages of a search for its next chair as the bank prepares for the departure of Jose Vinals, who’s entering his eighth year in the role
Pattaya Addicts
Eurostar to Suspend Amsterdam to London Service for 6 Months
Franz Liszt - Liebestraum - Love Dream
California is not considered a racist place. Or so it seems.
Dream a little dream of me
Sam Altman's return to OpenAI marks a significant turn of events for Microsoft and its relationship with the AI giant.
Unchained Melody sung like you've NEVER heard!
Radical immigrants set on fire police cars and loot shops in Dublin.
Dave Brubeck - Take Five
The BBC Caught Again with Questionable Journalistic Standards, as Ugly Facts Undermine Its Attractive Yet Flawed Arguments
Édith Piaf - Non, Je Ne Regrette Rien (Sofie)
This video reveals that Target's Black Friday promotions are entirely fake, with no actual discounts. The prices before and after are identical!
Rondo Alla Turca
Israel's Spokesperson Mark Regev's Response to Comparisons Between Palestinian Teenage Terrorists and Young Innocent Victims of Hamas Captivity
Kiss of fire
Here is a video showing the moment of the release of the captives by the terrorist organization Hamas and their transfer to the Red Cross on their way back to the State of Israel.
Tom Jones - I´ll Never Fall In Love Again 1967, 1989, 2001
Here is a video showing the moment of the release of the captives by the terrorist organization Hamas and their transfer to the Red Cross on their way back to the State of Israel.
Israel Cachao López - Guajira Clásica
Bill Gates Envisions a Possible 3-Day Work Week with AI
Edward Maya - Stereo Love (feat. Vika Jigulina) (Extended Mix)
Viktor Orban's Provocative Assertions and Their Significance in Europe
Strauss - Radetzky March - Karajan
Orban's Blunt Challenge to Brussels: Embracing National Sovereignty in Migration Policy
La vie en rose
OpenAI Staff Rebellion: 500 Employees Demand Board Resignation in Dramatic Standoff
The Temptations - My Girl (Smokey Robinson Tribute) 2006 Kennedy Cent
OpenAI Staff Rebellion: 500 Employees Demand Board Resignation in Dramatic Standoff
Orlando Cachaito Lopez Redencion
Over 200 Convicted in Italy's 'Ndrangheta Mafia Trial
Edith Piaf - NON, JE NE REGRETTE RIEN
In a scandalous revelation at the COVID-19 inquiry, UK Prime Minister Rishi Sunak is under fire for an alleged remark that suggests a chilling indifference to human life during the pandemic
RADETZKY MARCH-2008-Wien, New Year Concert
Abu Dhabi-Backed Fund Poised to Assume Control of UK's Telegraph Media Group
Only you (And you alone)
Sam Altman and Greg Brockman Join Microsoft Amidst OpenAI Developments
Strangers In The Night
Reporters Without Borders Unveils News Platform to Counter Russian Propaganda
Charles Aznavour - La Boheme
Singer Shakira will pay a fine of eight million euros after being accused of evading taxes worth 14.5 million euros during the years 2012-2014.
Summer time
Hungary's Orbán Asserts Ukraine Is Far from EU Membership
Sting and Stevie Wonder - Fragile (from Sting's 60th birthday concert)
Racial Bias in AI Leads to Wrongful Arrest Due to False Recognition
Aux Champs Elysees
Orban Stresses Hungary's Need to Reform the EU Rather Than Exiting It
Stand By Me - Ben E. King (Boyce Avenue acoustic cover)
Biden Advocates for Palestinian Authority to Govern Gaza and West Bank
La Mer (Beyond the Sea) – Avalon Jazz Band
Brigitte Macron Opens Up About Her Marriage to Younger President Emmanuel Macron
She
Apple and Disney Halt Ads on X Following Elon Musk's Antisemitic Post, US Reacts
Nathalie Song by Enzo Petrachi Stjepan Hauser Cello
Finland Shuts Four Crossing Points on Russia Border
Shape of My Heart - Sting (Boyce Avenue acoustic cover)
Viktor Orbán Welcomes Cameron's Political Return
Radiohead - Creep
The UK’s Supreme Court, in a move that surprised no one who respects international law and human rights, has just delivered a landmark ruling against Prime Minister Rishi Sunak’s immigration strategy.
Quizás,Quizás,Quizás - Andrea Bocelli - Jennifer Lopez
YouTube has introduced an AI feature named Dream Track that can mimic the voices of celebrities such as Demi Lovato and John Legend, enabling users to compose brief songs by specifying lyrics and mood
Perhaps, Perhaps, Perhaps - Multi-Couples
Viktor Orbán Welcomes Cameron's Political Return
Pentatonix Havana
The UK’s Supreme Court, in a move that surprised no one who respects international law and human rights, has just delivered a landmark ruling against Prime Minister Rishi Sunak’s immigration strategy.
Paula Cole - Autumn Leaves
AWS, Google, and Microsoft to Invest $8.5 Billion in Thailand
Oscar Benton Bensonhurst Blues
Top German journalist received €600,000 from Putin ally, leak reveals
OH NANANA vs ABUSADAMENTE
A Dramatic Video from Gaza, Provided by IDF Spokesperson Daniel Hagari, Offers Undeniable Evidence of Hamas Establishing Terror Operation Bases Near Schools, Above Hospitals, and Inside Civilian Areas.
Nina Simone - ”I Put A Spell On You”. Vezi aici cum cântă Jeremy Ragsd
FBI Agents Confiscate Electronic Devices of New York Mayor
NIGHTWISH - The Phantom Of The Opera
Moody's Downgrades U.S. Credit Outlook to Negative Amid Fiscal Concerns
Motorshow 2016 Tanjay Negros Oriental
Significant security measures set in place by Scotland Yard this Remembrance weekend in London
Monica Bellucci - Ti Amo
Paper straws found to contain long-lasting and potentially toxic chemicals - study
Michael Jackson - Billie Jean Milena The Voice France 2018
FTX's Bankman-Fried headed for jail after judge revokes bail
Michael Buble (Help Me Make It Through The Night) feat Loren Allred
Memories Canon In D - Maroon 5 (Boyce Avenue piano acoustic cover)
Matteo Simoni - Marina
Maroon 5 - One More Night
Maroon 5 - Memories
Mark Knopfler - Brothers In Arms (Berlin 2007 Live)
Mark Knopfler & Emmylou Harris - Romeo And Juliet (Real Live Roadrunni
Marina, Marina - The LUCKY DUCKIES intimist live concert at Guimarães
Major Lazer & DJ Snake – Lean On Mauranne The Voice France 2016
Love Theme from Romeo and Juliet - Joslin - Henri Mancini, Nino Rota
LoLa & Hauser - Love Story
Linkin Park Jay-Z - Numb Encore (Live 8 2005)
Hallelujah Mennel Ibtissem, The Voice France Leonard Cohen
Leonard Cohen - Dance Me to the End of Love
Leonard Cohen & Natasha Rostova - Dance me to the end of love
La casa de papel - Bella Ciao
La Camisa Negra
L'italiano (Toto Cutugno) - The Gypsy Queens
Juanes - La Camisa Negra
Jonathan and Charlotte - Britain's Got Talent 2012 Live Semi Final - U
John Powell - Assassin's Tango
Joe Cocker - You Can Leave Your Hat On (LIVE in Dortmund)
Joe Cocker - Unchain My Heart 2002 Live
Joe Cocker - A Whiter Shade Of Pale
Jay Z & Alicia Keys - Empire State of Mind LIVE
Jason Mraz - Im Yours (live)
Jarrod Radnich - Bohemian Rhapsody - Virtuosic Piano Solo
James Blunt - You're Beautiful
James Blunt - You're Beautiful & Bonfire Heart (Live at The Nobel Peac)
If You Go Away - Helen Merrill & Stan Getz (Tribute to Virna Lisi)
I'LL BE MISSING YOU
I Say a Little Prayer
Hotel California ( Eagles ) 1994 Live
Historia de un amor - Luz Casal. Vezi interpretarea Biancăi Sumanariu
Here Comes The Sun - The Beatles (Boyce Avenue acoustic cover) on Spot
Heart - Stairway to Heaven Led Zeppelin - Kennedy Center Honors
HAVANA by Camila Cabello Zumba Pre Cooldown TML Crew Kramer Pastra
HAUSER and Señorita - I Will Always Love You
HAUSER - Waka Waka
HAUSER - Sway
HAUSER - Lambada
HAUSER - Historia de un Amor
HAUSER - Despacito
Great Pretender
Georgia May Foote & Giovanni Pernice Samba to 'Volare' - Strictly Come
Gary Moore - Still Got The Blues
GIPSY KINGS VOLARE Penelope Cruz
Fugees - Killing Me Softly With His Song
French Latino - Historia de un Amor
For A Few Dollars More The Danish National Symphony Orchestra (Live)
Flashdance • What a Feeling • Irene Cara
Filip Rudan - “Someone You Loved” Audicija 4 The Voice Hrvatska Sez
Eric Clapton - Wonderful Tonight
Enya - Only Time
Enrique Iglesias - Bailando (English Version) ft. Sean Paul
Enrique Iglesias - Bailamos
Elena Yerevan Historia de un amor
Ed Sheeran - Shape of You (Official Music Video)
Ed Sheeran - Perfect Symphony [with Andrea Bocelli]
Ed Sheeran - Perfect (Official Music Video)
Easy On Me - Adele (Boyce Avenue 90’s style piano acoustic cover) on S
ERA - Ameno
ELENA YEREVAN- Cancion Del Mariachi-IN STUDIO-2017 DPR
Dust In The Wind - Kansas (Boyce Avenue acoustic cover)
Don't Let Me Be Misunderstood
Despacito x Shape Of You - Pentatonix
Deep Purple - Child In Time - Live (1970)
David Foster When A Man Loves A WomanIt's A Mans World (SealMichael Bo
Dance me to the end of Love ( Pi-Air Design )
Coolio - Gangsta's Paradise (feat. L.V.) [Official Music Video]
Conquest Of Paradise (Vangelis), played on Böhm Emporio organ
Cielito Lindo
Chico & The Gypsies - Bamboleo
Canción Del Mariachi - Antonio Banderas, Los Lobos • Desperado
Camila Cabello - Havana (Audio) ft. Young Thug
Camila Cabello - Havana ( cover by J.Fla )
California Dreamin' - The Mamas & The Papas José Feliciano (Boyce Ave
Buster Benton - Money Is The Name of The Game
Hallelujah Pentatonix
Bobby McFerrin - Don't Worry Be Happy (Official Music Video)
Bob Dylan - Knockin' On Heaven's Door Emilia The Voice Kids France
Besame Mucho - Cesaria Evora
Ben E. King - Stand by Me Sax Cover Alexandra Ilieva Thomann
Bella Ciao
Bella Ciao - INSTRUMENTAL
Beautiful in White x Canon in D (Piano Cover by Riyandi Kusuma)
Bad Romance - Vintage 1920's Gatsby Style Lady Gaga Cover ft. Ariana Savalas & Sarah Reich(1)
BELLA CIAO 2020 - KARAOKE ITALIANO
BAMBOLEO - Gipsy Kings • Antonio Banderas, Katya Virshilas
BAILANDO (original)
Awesome Ukrainian yodeler - SOFIA SHKIDCHENKO (with English subtitles)
Avicii - The Nights
Atom - The Great Gig in the Sky
Aretha Franklin - (You Make Me Feel Like) A Natural Woman (Official Ly
Antonio Banderas - Cancion del Mariachi (Desperado)
André Rieu - Zorba's Dance (Sirtaki)
André Rieu - Can't Help Falling In Love
André Rieu & Mirusia - Ave Maria
Andrew Reyes Elton John - Don't Let The Sun Go Down The Voice 2020 (
Andreas Kümmert Whiter Shade Of Pale The Voice of Germany 2013 Showd
And I Love You So
All About That Bass - Postmodern Jukebox European Tour Version
Alan Walker - Faded (Piano Cover)
Ain't No Sunshine -- Bill Withers (cover by Canen 12 y.o.)
African music
Adriana Vidović - “Creep” Audicija 4 The Voice Hrvatska Sezona 3
Adriana Vidović - “Believer” Nokaut 3 The Voice Hrvatska Sezona 3
A Fistful of Dollars - The Danish National Symphony Orchestra and Tuva
4 Beautiful Soundtracks Relaxing Piano [10min]
2CELLOS - Whole Lotta Love vs. Beethoven 5th Symphony [OFFICIAL VIDEO]
2CELLOS - Smooth Criminal (Live at Suntory Hall, Tokyo)
2CELLOS - Smells Like Teen Spirit [Live at Sydney Opera House]
2CELLOS - Despacito [OFFICIAL VIDEO]
13 Year Old Girl Playing Il Silenzio (The Silence) - André Rieu
094.All About That Bass
00 - SADNESS PART 1
(Ghost) Riders In the Sky (American Outlaws Live at Nassau Coliseum, 1
(Everything I Do) I Do It For You - Bryan Adams (Boyce Avenue ft. Conn
What a wonderful world
Moon river
×