Amidst the protracted war in Ukraine, analysts say that the United States and Europe, which have confirmed unity against Russia, are showing signs of division over the Inflation Reduction Act (IRA).
Unlike the European economy, which fell into recession following the war, the United States benefited from high energy prices and arms exports, and accumulated discontent erupted with the operation of the IRA.
On the 25th (local time), US political media Politico reported that senior European officials are angry with the Joe Biden administration and accuse the US of making big money from war while EU countries suffer.
A senior EU official told Politico, “If you look at it soberly, the biggest beneficiary of this war is the United States, because it sells gas at a higher price and also sells more weapons.”
“We are really at a historic point,” said another senior EU official, “The US needs to realize that public opinion in many EU countries is changing.”
Europe is experiencing economic difficulties due to the Russian invasion of Ukraine in February this year. As Russia cuts natural gas supplies to Europe, the pain of rising energy prices and consequent inflation has increased.
Europe has increased imports of liquefied natural gas (LNG) from the United States to reduce its energy dependence on Russia and fill winter gas shortfalls. However, the controversy grew as the United States set a price four times higher than the domestic supply price.
French President Emmanuel Macron said US natural gas prices were “unfriendly”. Germany appealed for help to reduce energy costs to show American unity.
In addition, the fact that he has to buy US-made weapons for resupply after sending weapons to support Ukraine is a factor causing conflict.
In this situation, concerns arose that if the United States implemented the IRA and paid huge subsidies to companies, European industries already suffering from war could be destroyed.
“Our friend the United States has made a decision that has an economic shock for us,” said top EU diplomat and security representative Josef Borrell.
“The IRA has changed everything,” an EU diplomat told Politico, “Is the US still our ally or not?”
However, EU ministers and diplomats were frustrated by the Biden administration’s oversimplification and ignoring the impact the IRA’s action would have on its European allies, Politico reported.
A senior EU official said at the G20 summit held in Bali, Indonesia, in mid-month, that President Biden took a do-it-yourself attitude when European leaders raised objections to the US LNG price.
In response to the point that the US LNG price is high, the US government emphasized that the price is set by the private market and is not the result of US government policy or actions.
A US government official said, “US companies are transparent and reliable suppliers of natural gas.”
The EU and US agree that the conflict over the IRA is the way Russia wants it. However, the US side shows no change in its position on the IRA.
The EU is preparing a plan to pay large-scale subsidies to European industries in response to claims that the IRA is a discriminatory subsidy.
Politico said, “Nine months after the invasion of Ukraine, Russian President Vladimir Putin has begun to divide the West.”
[서울=뉴시스]
