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America n.1: Obama’s game plan and Europe

The debate, held following the live telecast of the swearing-in and inauguration speech of the new President of the United States, Barack Obama, focused on the critical domestic and international situation that the new administration and President will have to face. Expectations are high and the problems are complex if not dramatic. It was precisely an awareness of the challenges ahead that probably led Obama to frame his first speech as President in rather pragmatic tones, emphasizing the sacrifices Americans will have to make in this “era of responsibility”.

On the domestic front, the administration will have to manage the most severe financial crisis since the post-war period, putting in place new rules for finance and support mechanisms for ailing industry. It will immediately have to address the energy issue, confirming what was said during the election campaign: America must aim for energy independence and, to achieve this, must develop a supply mix which encourages the use of alternative energy and pursues an energy-saving policy. For reasons of shortage of funds and the financial crisis, it will also be difficult for the new President to follow through on certain electoral promises, particularly with regards to health and education reform. Only time will tell; if measures to boost the economy work and there can be talk of recovery, then the new administration will have more money at its disposal to spend.

These unavoidable priorities will have international repercussions, with some risk that protectionist instincts might prevail, notwithstanding the fact that the appointments to key economic policy positions have been reassuring.

On the international front, the conflict in the Gaza Strip has put the Middle East back on the top of the international agenda. Diplomatic efforts will be needed to restore a negotiating framework which the fighting seems to have swept aside. The position of the United States will be fundamental for the creation of a new equilibrium within the region, one which also engages Syria and Iran in a more cooperative manner – even if the achievement of that goal is still far off. At any rate, as was made abundantly clear in the electoral campaign, Obama considers the war in Afghanistan a real priority for US foreign policy and security. The security issue remains firmly at the heart of the agenda. Obama has held out a hand to moderate Islam whilst using the harshest tones in relation to terrorists.

America the ally will call on Europe to provide a greater commitment on this and other fronts, most certainly involving Europe in a more multilateral way than did the Bush administration. Yet it will also require the Old Continent to step up the transatlantic partnership, in the sense of undertaking greater responsibilities and duties in managing crises and international organizations.

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Emma Marcegaglia and Gianni Riotta
Marta Dassù, Boris Biancheri Chiappori and Emma Marcegaglia
America n.1: Obama’s game plan and Europe, Rome, January 20, 2009
Giuliano Amato and Emma Marcegaglia

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