Europe faces an enduring crisis of energy and geopolitics

If you ask Europe’s friends around the world what they think of the old continent’s prospects they often respond with two emotions. One is admiration. In the struggle to help Ukraine and resist Russian aggression, Europe has displayed unity, grit and a principled willingness to bear enormous costs. But the second is alarm. A brutal economic squeeze will pose a test of Europe’s resilience in 2023 and beyond. There is a growing fear that the recasting of the global energy system, American economic populism and geopolitical rifts threaten the long-run competitiveness of the European Union and non-members, including Britain. It is not just the continent’s prosperity that is at risk, the health of the transatlantic alliance is, too.