Liz Truss, the British P. M., resigned after a very short stint of forty five days as she failed to manage the economy in these testing times. Her resignation is symptomatic of a big problem Britain, and for that matter, the whole of Europe is afflicted with.
The economy of Europe, particularly Germany and Italy, is declining fast. There are several reasons for this decline but the immediate cause is Russia-Ukraine war, which has completed almost eight months. Europe is heavily dependent on Russia for her energy requirements.
The American economic sanctions on Russia which followed the Russia-Ukraine war has cut this supply line of energy for Europe. They are unable to import Russian gas and oil as per their need. This has forced them to buy oil and natural gas from other sources, particularly from America, at a much higher price. This has put an unnecessary and unforeseen burden on the already fragile economy of European countries.
The management of British economy is, therfore, very difficult and needs tough economic measures and there is no room for populism. The successor of Truss will have a really tough time while bringing the economy back on the rails. High taxation will be needed which will decline consumption and further slow down the economy for the time being. This bitter pill, however, has to be taken. Besides, steps for better financial management will have to be taken. These steps apart, Britain and other European countries will have to review their political relationship with America as it is costing them dearly in the economic field.
America is no longer a protector of Europe. On the contrary, Europe is suffering because of the American hegemony which has become weak . The European countries must realise that America is a liability and the NATO, the American tool to dominate the West and the world, is like an albatross in their neck. Ukraine's desire to be a part of NATO has landed it in such a mess. Germany, Italy, Hungary etc. are facing acute crisis of energy and if Russia-Ukraine war doesn't come to an end shortly and the economic sanctions imposed upon Russia are not lifted, the economy of the world and European countries in particular, is not going to improve.
Why is America unaffected of all these developments? The American economy is sound and she is away from the heat of the war. She has a huge oil resrve which can sustain her for almost a year. She has her Shell oil and natural gas. This huge energy reserve was created over the years at a much lower cost. America could do it as she is rich and always has surplus money. Moreover, America has released some crude oil from her reserve in the name of easing the market prices of oil. She will not tell you as to how much profit she made out of it. This process will continue in the name of helping the world and the American kitty will keep fattening.
The arms industry is another great source of income for America which needs some sort of war all the time. You can call it a sophisticated modern tool of business.
In this backdrop, difficult times are ahead of Europe. Trouble will soon start in Germany and Italy. The only way for Europe is to chart out an independent course of action in geopolitics.
The writer is a noted academician and political commentator.