London Daily

Focus on the big picture.
Sunday, Jun 01, 2025

Europe’s anti-American itch

Europe’s anti-American itch

Europeans have only themselves to blame for their industrial and strategic failings.

It’s gotten cold in Europe, the economy is tanking and the natives are getting restless. There’s only one answer: Blame America.

Pointing across the Atlantic has long been a favorite diversionary tactic for Europe’s political elites when things start to get dicey on the Continent.

Whether it’s the war in Ukraine (Washington shouldn’t have expanded NATO), natural disasters (too many American SUVs fueling climate change) or the demise of French as a lingua franca (cultureless Hollywood), America is inevitably the culprit.

In the latest instalment of this tedious tradition, European officials are trying to blame the greedy Americans for the Continent’s current funk, accusing them of placing the mighty dollar über alles, stooping so low as to even take advantage of the war in Ukraine.

“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,” a senior European official vented to my POLITICO colleagues last week.

Sobriety, however, is not a quality one could safely ascribe to the anonymous accuser.

Leaving aside the fact that Ukraine would have collapsed months ago if the U.S. hadn’t stepped in, the direct impact of Russia’s war on America’s $26 trillion economy from the sale of natural gas and arms is a droplet in a bucket.

For one thing, the U.S. exports less than 10 percent of its natural gas production. In 2021, the value of those exports was about $27 billion. While Europeans are understandably upset that their gas prices are four times what they are in the U.S., no one told them to make themselves dependent on Russian gas or to switch off perfectly functioning nuclear power plants (in fact, Washington told them for years not to).

The accusation of supposed war profiteering from weapons is no less hollow. Of the roughly $30 billion in military assistance the U.S. has so far provided Ukraine, the bulk of the equipment has been donated.

While American defense contractors stand to benefit from replacing stocks and from stronger demand for arms among NATO allies, so too should their European counterparts.

Yet therein lies the rub: European firms should benefit as much as Americans, but don’t. The main reason is that Europe has underinvested in its defense industry.

Germany’s recent decision to purchase American F-35 fighters, for example, was driven by the simple fact that there are no European alternatives. A plan by France, Germany and Spain to develop a “future combat air system” was hatched in 2001 but has yet to get off the ground amid persistent infighting.


A U.S. F-35 fighter takes offrom an aircraft carrier

Political resistance in several European states over weapons exports has further stunted the region’s arms industry.

Take the Leopard 2 main battle tank, made by Germany’s Krauss-Maffei and considered by many to be the world’s best. Despite that reputation, the Germans lost out to South Korea when NATO ally Poland recently ordered nearly 1,000 new tanks. While price was one factor, political uncertainty was another, according to a person familiar with the decision, citing Berlin’s decision to block the sale of decommissioned infantry fighting vehicles and battle tanks to Ukraine.

Europe’s main bugaboo these days when it comes to the U.S. involves a set of green subsidies introduced by the Biden administration that benefit American companies.

One of French President Emmanuel Macron’s top priorities during his state visit to Washington this week will be to water down provisions in Biden’s Inflation Reduction Act (IRA), a sweeping legislative initiative covering everything from climate to health. European officials describe it as a reincarnation of the Smoot-Hawley act, a catalogue of tariffs in Washington introduced in 1930 that historians blame for worsening the Great Depression.

The Europeans fear the generous “Made in the U.S.A.” subsidies will undermine their industry and are threatening a trade war.

The inconvenient truth, however, is that Europeans are having difficulty getting their own companies to invest at home because governments have placed more emphasis on subsidizing household gas bills than helping the region’s industry weather the crisis.

“Europe is not cost-competitive in many areas, in particular, when it comes to the costs of electricity and gas,” Thomas Schäfer, who runs the Volkswagen brand, said in a post on social media slamming Europe’s industrial policy.

“If we don’t succeed in quickly lowering energy prices in Germany and Europe, then investments in energy-intensive production, or for new battery cell factories, in Germany and across the EU will no longer be feasible,” he said.

Still, ask around Berlin’s government quarter what’s really holding Germany’s economy back these days and the answer is clear.

“The U.S. is pursuing a massive industrial policy with protectionist tendencies,” Lars Klingbeil, co-leader of German Chancellor Olaf Scholz’s Social Democrats, told Die Welt last week. “It shouldn’t be that U.S. economic policy is targeting us Europeans.”

The sad reality is that the Biden administration probably didn’t even consider Europe when it decided on the subsidies.

That fact alone should give Europeans pause.
Europe has become more dependent on the U.S. than it has been since the Cold War


The issue isn’t that Europe doesn’t matter to the U.S., but rather that it doesn’t matter as much as Europeans would like to believe.

When it comes to innovation, Europe is a desert. There is no European Apple, Google or Tesla. Indeed, Tesla’s market value is four times higher than the entire German auto industry.

That’s why it’s difficult not to conclude that Europe’s blame game is really about something else — envy.

Despite America’s political divisions, the country has never been stronger in terms of its military might or its economic muscle.

Europe, meanwhile, has become more dependent on the U.S. than it has been since the Cold War, a circumstance that is fueling both resentment and the blame game.

In Germany, a book titled “Ami, It’s Time to Go!” (Ami is German slang for Americans) has become a bestseller. The author is Oskar Lafontaine, a former finance minister who once led the Social Democrats before breaking with the party.

“We have to free ourselves from the tutelage of the U.S.A.,” Lafontaine writes, describing America as the root of most evil and arguing that Europe needs to blaze its own path.

Judging by the past century, Europeans would be wise to ignore him and accept that they only have themselves to blame for their current malaise.

Newsletter

Related Articles

0:00
0:00
Close
Hegseth Warns of Potential Chinese Military Action Against Taiwan
OPEC+ Agrees to Increase Oil Output for Third Consecutive Month
Jamie Dimon Warns U.S. Bond Market Faces Pressure from Rising Debt
Turkey Detains Istanbul Officials Amid Anti-Corruption Crackdown
Taylor Swift Gains Ownership of Her First Six Albums
Bangkok Ranked World's Top City for Remote Work in 2025
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
×