The Biden administration has managed to accomplish what Russian dictator Vladimir Putin could only have dreamed about: a rift between the United States and our European allies. The “adults in the room” have apparently infuriated European Union leaders over what they perceive to be America’s profiteering from the war in Ukraine. EU officials, most of whom spoke to Politico on the condition of anonymity, are angry over the outsize increase in the price of American gas, the effects on international trade from government subsidies to green energy companies, and the boon to the U.S. defense industry.
Putin’s invasion of Ukraine has forced EU nations, which had become overly reliant on Russia for their energy needs, to look elsewhere. Naturally, they turned to the U.S. first. Speaking last week on French TV, European Commissioner for the Internal Market Thierry Breton said, “The United States sells us its gas with a multiplier effect of four when it crosses the Atlantic.”
This comes at a time when our allies are already reeling from the effects of the war at their doorstep and an inflation rate of 11.5%.
A senior EU official told Politico, “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. We are really at a historic juncture. … America needs to realize that public opinion is shifting in many EU countries.”
Top EU diplomat Josep Borrell said, “Americans — our friends — take decisions which have an economic impact on us.”
Biden administration officials dismissed the accusations. Assuming Europeans might be as gullible as many Americans, they blamed the high prices on “Putin’s price hike.” A spokesperson for the National Security Council claimed, “The rise in gas prices in Europe is caused by Putin’s invasion of Ukraine and Putin’s energy war against Europe, period.” U.S. exports of liquefied natural gas “increased dramatically and enabled Europe to diversify away from Russia,” the spokesperson continued.
“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,” he said.
A second U.S. official told Politico, “U.S. companies have been transparent and reliable suppliers of natural gas to Europe.” He also maintained that, generally, the markup in prices goes to the companies “reselling the gas within the EU.”
EU officials are especially concerned that the subsidies and taxes for renewable energy companies included in the recently passed Inflation Reduction Act will trigger a trans-Atlantic trade war that would harm European industry. Speaking to a group of business leaders earlier this month, French President Emmanuel Macron said, “The U.S. produces cheap gas and, in addition, rolls out massive state aid schemes. … I think this does not comply with the rules of the World Trade Organization and I think it is not friendly.”
Macron is not alone in this assessment. Dutch Trade Minister Liesje Schreinemacher noted, “The Inflation Reduction Act is very worrying. The potential impact on the European economy is very big.”
Another EU official said, “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.”
A top EU diplomat told Politico, “The Inflation Reduction Act has changed everything.” He asked, “Is Washington still our ally or not?”
Member of the European Parliament Tonino Picula said, “The U.S. is following a domestic agenda, which is regrettably protectionist and discriminates against U.S. allies.”
German MEP Reinhard Butikofer described the situation as a “creeping crisis of trust on trade issues in this relationship.”
One of the officials said that, when approached over the impact of the Inflation Reduction Act on European companies at the recent G-20 summit in Bali, Biden was “unaware” of any issues.
Another source of tension among our European allies is the Biden administration’s determination to provide a “blank check” to Ukraine in its fight against Russia. According to the Center for Strategic and International Studies, the U.S. has already provided $68 billion in aid to Ukraine and is currently requesting additional funds from Congress. EU officials, who would like to see a negotiated end to the war, question this strategy as they watch U.S. arms manufacturers reaping outsize profits.
So, as Europeans suffer from an acute shortage of energy this winter and an unexpected assault on their own green energy industry, the same administration that promised to restore our relationships on the international stage has served only to alienate our closest allies. Beholden to their green agenda and the Washington military industrial complex, they blame it all on Putin and feign unawareness of their own exploitation of the situation.
No doubt, the political agendas of the EU members have exacerbated this sad state of affairs, not least of which was their own climate policies forcing them to become so utterly dependent upon Russian energy in the first place.
But a time of war is the wrong occasion to be capitalizing on an ally’s weakness. And unfortunately for the Biden administration, unlike many Americans, the Europeans are not buying the excuses Biden is selling.
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Elizabeth Stauffer is a contributor to the Washington Examiner and the Western Journal. Her articles have appeared at MSN, RedState, Newsmax, the Federalist, and RealClearPolitics. Follow her on Twitter or LinkedIn.
