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Speaking at a joint press conference with French President Emmanuel Macron last week, President Biden acknowledged the Inflation Reduction Act may have “glitches” but defended what the White House views as a major achievement. Biden told reporters he makes “no apology” for the green energy subsidies that have irritated European leaders who fear the $430 billion law will treat their companies unfairly. Straight Arrow News contributor Peter Zeihan breaks down Europe’s gripe with Biden’s pro-American act.
Excerpted from Peter’s Dec. 6 “Zeihan on Geopolitics” newsletter:
President Biden is getting into the holiday spirit by slapping a bow and some American Flag wrapping paper on a sweet little surprise for Europe…The Inflation Reduction Act. Inside they’ll find a wide array of pro-American manufacturing programs that are less than favorable for the Europeans.
Europe has enjoyed 75 years of safe and lucrative trade thanks to the guns and butter deal we know as globalization, but the Americans have outgrown that model. They are ready to bring some of their manufacturing home, and not in a small quantity…we’re talking 12 zeros here. This comes at a time when Biden needs some new footing with the organized labor faction and nothing speaks louder than money.
Europe isn’t happy about the American’s leveling out the playing field and WTO action has been threatened, but at the end of the day, the Biden administration is going to get its way.
