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53

Introduction: the big shift

Transatlantic relations, which for most intents

and purposes are perceived as the relations be-

tween the United States and Europe, have proved

to be solid and strong enough to resist the force

of periodic tensions and differences of opinion

that have arisen between the two over the last

seven decades. The outbreak of the financial cri-

sis of 2007 demonstrated not only their interde-

pendence in terms of the economic and social

hardships both suffered as a result, but also the

need to face this challenge jointly by means of a

greater level of coordination and global agree-

ments in every sphere of governance.

Economic transatlantic interdependence has

steadily deepened over the years, especially in

terms of commerce and investment involving

emerging economies (BRICS). Statistics for 2016

bear this out. Commerce between the EU and

the US not only accounts for 35 % of annual

world GDP at purchasing power parity weights,

25 % of world export trade and 30 % of world

import trade but also sustains over 15 million

jobs in the EU and the US. US direct foreign in-

vestment in Europe accounts for 60 % of total

US DFI. (Asia, in comparison, receives 16 %.)

Ties between American and European compa-

nies, international subsidiaries and banking and

financial service sectors continue to strengthen,

technology is being shared as never before and

digital connections between the US and Europe

are expanding exponentially. To this one must

add the two continents’ interwoven strategic

and political aspirations, common outlook re-

garding world order and membership in the

North Atlantic Treaty Organization (NATO).

This chapter, however, focuses on the sea

change in EU-US relations that has taken place

in the light of the most recent US presidential

election campaign, the exit of Barak Obama

from the White House and Donald Trump’s as-

sumption of the presidency on 20 January 2017

– a time frame during which the traditional

business-as-usual tenor of transatlantic relations

has given way to tension and uncertainty. This

period, which began with the atmosphere of

tense calm and impasse characteristic of all US

presidential campaign periods, was preceded by

a number of political developments that in one

way or another affected European interests: a

halt in negotiations on the Transatlantic Trade

and Investment Partnership (TTIP), a flare-up of

diplomatic tensions between the U.S. and Russia

over sanctions and compliance with the Minsk II

Treaty in Ukraine, the deteriorating situation in

war-torn Syria and debate regarding the future

status of Bashar al-Assad. There was, nevertheless,

The United States and Europe:

the end of an era

Vicente Palacio