Officials are unhappy with the Inflation Reduction Act and its subsidies that could drive investment out of Europe

By Dave DeCamp, Antiwar.com

High-level European officials are furious with the Biden administration and are now accusing the US of profiting from the war in Ukraine while Europe is facing a potential energy crisis.

bullets and money

In comments to POLITICO, a senior EU official said, “The fact is, if you look at it soberly, the country that is most profiting from this war is the US because they are selling more gas and at higher prices, and because they are selling more weapons.”

The US-led sanctions campaign on Russia has backfired on Europe as it has ratcheted up energy prices to the point where Europeans may face blackouts this winter. On top of the energy situation, European leaders also fear they will lose out on investments due to unprecedented subsidies included in the US’s Inflation Reduction Act, which President Biden signed into law in August.

The Inflation Reduction Act includes $369 billion in subsidies and tax breaks for green businesses, incentivizing companies to invest in the US instead of Europe. European leaders have publicly criticized the US for the legislation and are considering subsidies of their own, signaling the beginning of a new trade war.

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