Merkel and Trump disagree
Credit: Reuters/Rheinhard Krause

The dollar is arguably Washington’s most powerful peacetime weapon. But when Donald Trump ignored his EU partners and reapplied sanctions on Iran—undermining a nuclear treaty that European leaders believe in—he added to a long list of officials who resent this financial ammunition. What’s striking is that, this time, the complaints aren’t just coming from Moscow and Caracas, but allies in Berlin.

Last week, Germany’s federal minister for foreign affairs, Heiko Maas, acknowledged a growing rift between the US and Europe, calling for the latter to consider building a bigger military, creating its own version of institutions like the World Bank, and perhaps even prying its bank payment channels apart from the dollar-dominated network. Maas’s point: The US is no longer a reliable partner.

Widening the US/Europe rift would suit Vladimir Putin just fine. Instead of the US-led “unipolar” structure that’s been in place since the Cold War, the Russian president is striving for a world controlled by regional […]

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