Tuesday, 02 January 2024 12:17 GMT

Transatlantic Alliance Rifts Tearing Into The Open


(MENAFN- Asia Times) The Ukraine war is often portrayed as driving greater defense consolidation and cooperation among transatlantic partners. But while this may be true in several ways, the conflict has also exposed the divergent interests among those various partners.

As Kiev's ability to maintain the current line of contact appears more tenuous by the day, latent fault lines-mostly drawn on political and economic grounds-in the current security architecture may very well lead to a number of until-now brushed over rifts tearing open in the post-war period.

The first major schism can be found in the relationship between the United States and its European allies. It is possible to make the argument-albeit in a rather cynical manner-that forcing Ukraine to keep fighting instead of agreeing to limited concessions at the beginning of the war served to achieve advantageous returns for Washington.

The cut-off of Russian oil and gas to Europe has directly benefited the US energy industry through the subsequent demand for US LNG, helping it to become the world's largest LNG exporter in 2023, with Europe as the primary destination.

This past year also set new records for US crude oil exports; Europe once again led the way as the top export destination (1.8 million barrels/day, compared to 1.7 million to Asia and Oceania). This was all undergirded by one of the most major inter-alliance developments in the post-Cold War period: the sabotage and destruction of both Nord Stream pipelines.

At the same time, the increased price of energy alongside supply chain challenges in Europe has increased the relative competitiveness of the US economy as production costs soared on the continent. Germany – Europe's industrial powerhouse with an economy that is heavily reliant on the export of manufactured products – has precipitously fallen to become the worst-performing major developed economy in the world.




Gas bubbles in the Baltic Sea from the Nord Stream 2 natural gas pipeline sabotage on September 27, 2022. Photo: Danish Defense Command / Handout

Unsurprisingly, the German population has subsequently suffered from plummeting living standards since the outset of the war. The International Monetary Fund predicts economic growth in the Eurozone of only .9% in 2024, particularly measly when compared to 2.6% predicted in Russia.

Meanwhile, farmer protests are still raging across much of Europe, not only due to increasingly stringent regulations enacted under the auspices of“environmental measures”, but also because of the flood of cheap agricultural imports from Ukraine.

Local European populations suddenly saw their market share of agricultural products undercut by cheap Ukrainian alternatives when the EU determined that free trade would be allowed with Kiev at the initiation of the war. Most notably, Polish tractors continue to attempt blockades of the border with their war-torn neighbor, while further west in Brussels farmers hose down the bastions of EU bureaucracy with fresh manure.

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