The Biden era begins and Europe and the G7 welcome back America

Biden seeks to reaffirm the values of Western democracies and Washington's dedication to the Atlantic alliance. Meanwhile, progress is being made on climate change, supply shortages and major trade disputes.

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America Europe Biden Friedman

by Alan Friedman |

Perhaps the statement that best sums up Europe's reaction to President Joe Biden 's recent visit is that of the President of the European Commission, Ursula von der Leyen. European Commission Ursula von der Leyen, when she welcomed the American leader to Brussels: "What a pleasure to have you here. What an honour. Your decision to visit us at the dawn of your term of office, I think, underlines your personal attachment to Europe, and we appreciate it very much. In truth, the last four years have not been easy. The world has changed dramatically. Europe has changed. But we want to reassure you: we are friends and allies, and we look forward to working together with you'.

Four years not easy

The last four years have not been easy! Ursula Von der Leyen, a sophisticated and multilingual politician, has displayed all the skill with which she masters the art of European understatement, shedding the dross of the Trump era and greeting America's renewed commitment to the transatlantic alliance with a broad smile. For his part, Biden was both magnanimous and humble. But he also sounded a warning against what he called 'false populism', which is on the rise in both America and Europe. "Big changes in technology. Big changes in global development. All of this is spreading anxiety in our countries," Joe Biden said. "Which generates characters, not to say charlatans, intent on exploiting those concerns. We see it in Europe, we see it in the United States, we see it all over the world, this false populism. I think the best way to respond to these upheavals is to create the conditions that will allow our economies to grow, and to grow together."

Biden added: 'Europe is our natural partner, because we believe in the same democratic rules, which are increasingly under attack'.

Much criticism of China and Russia

The US president attempted to rally his allies in Europe and the G7, from Canada to Japan, into a firm communiqué highly critical of China. But it became clear that Germany and Italy, both linked to the Asian powerhouse by significant trade interests, are less inclined to attack Beijing with explicit American-style rhetorical displays. Differences on the subject aside, however, the meeting was a harmonious one - on the use of fiscal stimulus to help the global economy recover, on climate change, on anti-Covid measures, on the shared position in defence of Western democratic values against Vladimir Putin's aggressive provocations.

In the communiqué issued following the summit, NATO leaders stated: "Russia's aggressive actions pose a threat to Euro-Atlantic security". Biden made his concerns about Putin's attacks on democracy crystal clear during his meeting with the Russian leader in Geneva.

Good news on the commercial front

The US President's visit brought some good news on the trade front: the US and Europe finally resolved their long-running disagreement over government subsidies to national airlines. The dispute, centred on government subsidies to Boeing and Airbus, had been dragging on for 17 years and escalated when former President Donald Trump imposed duties on European products worth $7.5 billion. The European Union responded by imposing duties on American goods. Both sides have now agreed to suspend the duties for five years. The G7 leaders also discussed the crucial needs of supply chains and the disruption caused by Covid. In particular, they discussed semiconductor shortages and the steps needed to secure supplies of rare earths and key products in pharmaceuticals, advanced medical technology and other manufacturing sectors. President Biden proposed new forms of cooperation between American and European companies.

Resilient supply chains

The G7 was held just days after the release of the Biden administration's report on supply chains, a 100-day investigation. The report, released on 8 June, was entitled 'Creating Resilient Supply Chains, Revitalising Manufacturing and Sustaining Broad-based Growth'. The report did not just outline the main way to revitalise the US economy: the real goal was to make US and European capitalism strong and resilient enough to compete with China's state-led semiconductor model. The report recommends close cooperation between America and its European allies and partners in every manufacturing sector. Meanwhile, Seeds, the semiconductor industry association, was very pleased with the US Senate's approval of funds totalling 52 billion for new incentives to promote US semiconductor research and manufacturing activities. This initiative is part of the United States Innovation and Competition Act.


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