By Daniel DePetris
All is not well in the transatlantic relationship.
This might come as a surprise given that the United States and Europe have been remarkably unified on Europe’s most urgent security crisis in the post-Cold War era. Despite Russian President Vladimir Putin’s attempt to inject division into the pro-Ukraine coalition by throttling gas supplies to Europe, the West is sticking to its guns, maintaining sanctions on Moscow until either the war ends or Russian troops are forced to withdraw.
This consensus, however, has masked disputes between Washington and its European allies that are becoming more difficult to manage. Talking points about solidarity aside, the US and Europe are clashing, with European politicians griping over what they see as an insufficient understanding by the Biden administration as to how American policies impact the continent.
The most visceral dispute is over Biden’s signature Inflation Reduction Act, which was signed into law over the summer. This $739 billion piece of legislation is designed in part to boost the competitiveness of American manufacturing and dump significant investment into green energy projects. The Europeans are frustrated with one section of the law that provides $369 billion in subsidies and tax breaks to green businesses based in the US, a provision European officials fear will incentivize the continent’s industry to move operations stateside.
This piece was originally published in Spectator World on November 30, 2022. Read more HERE.