By IPS Correspondents
BRUSSELS, Jan 20 2005 (IPS)

European Union officials watched with interest, and some with dismay, as U.S. President George W. Bush was inaugurated for a second four-year term at a lavish ceremony Thursday (Jan. 20).

Many, who have felt alienated by the Bush’s go-it-alone foreign policy in recent years and the U.S.-led war in Iraq, had hoped he would lose the U.S. election last November, but now those critics will have to be content with making the most of what they see as a bad situation..

But Bush has vowed to mend the broken relationship with the European Union (EU) and change the U.S. approach to the bloc and other multilateral bodies.

Shortly after his Nov. 2 victory, Bush promised to "work through the NATO (North Atlantic Treaty Organisation) alliance and with the European Union to strengthen cooperation between Europe and America."

In return, the EU will be hoping that Bush will listen and consult more over ongoing disputes that are currently fuelling the transatlantic divide.

But even before Bush officially took up his second term, differences over a range of issues emerged.

Suggestions by British foreign secretary Jack Straw last week that the EU intends to lift its 15-year arms embargo on China have angered the United States.

Straw said he expects the ban imposed in the wake of the 1989 Tiananmen Square massacre will be lifted "in the next six months." Britain takes over EU presidency for the second half of the year.

Other EU countries such as France and Germany – both major arms exporters – also favour lifting of the ban.

But Washington argues that resumption of European arms sales will undermine Taiwan and encourage domestic repression.

The EU’s warming relations with Cuba are also a source of discontent for Washington.. The EU and member states resumed formal contacts with the Cuba earlier this month.

Relations between the EU and Cuba broke down after European diplomats began inviting critics of Fidel Castro to cocktail parties in Cuban capital Havana.

The practice began after Cuba’s imprisonment of 75 dissidents which it said were mercenaries in the pay of Washington, and the execution of three men who attempted to hijack a ferry. But last month the European Commission, the EU executive, recommended the practice be abandoned.

But the U.S. stands firm on its anti-Cuba position. New U.S. secretary of state Condoleezza Rice called Cuba an "outpost of tyranny" during her testimony before Congress Tuesday (Jan. 18).

But Rice also stressed the importance of the U.S. relationship with multilateral institutions such as the EU and the United Nations.

"America’s relations with the world’s global powers will be critical," she said. "Our interaction with the rest of the world must be a conversation, not a monologue."

The U.S. and EU approach to Iran is also likely to remain a source of tension during Bush’s second term, with the EU favouring dialogue to ensure that Iran does not develop nuclear arms, and the United States, pressure.

Bush has also shown no sign of answering calls to sign the Kyoto protocol to cut greenhouse gases, or to endorse the International Criminal Court (ICC). There are few signs of moves to strengthen the dollar despite complaints from the EU that its exports are suffering because of the high euro.

During Bush’s second term the EU will look for much more commitment to Middle East peacemaking. It is hoping that the United States will live up to its promises to put "new vigour" into the Middle East peace process.

Even Bush’s closest ally, British Prime Minister Tony Blair, has signalled his frustration with the lack of progress on the Middle East. Bush has pledged to make as much effort with this as Blair has with the Northern Ireland peace process.

Bush will find little comfort if he looks to European citizens for support. A BBC survey published on the eve of Bush’s inauguration shows that few are hopeful about the President’s second term.

Three-quarters of French and Germans felt Bush’s re-election was bad for peace and security in the world, while almost two-thirds of Britons thought so.

The poll also found that huge majorities of Russians and Turks saw U.S. influence in the world as "mainly negative".

Unsurprisingly, the main factor behind the generally negative assessment is the war in Iraq.

The only European country to buck the trend is Poland, one of the new members of the European Union, where both Bush and the United States get positive marks.

Benita Ferrero-Waldner, EU commissioner for foreign affairs, said it is "understandable" why public opinion fails to appreciate the value of the EU-U.S. partnership, but insists that is important to reverse such a trend.

"Understanding why is not enough – we must both make more effort to communicate to our public the significance and value of our relationship," she said in a statement. "Recently, public opinion on both sides of the Atlantic has received a rather negative impression of the state of our relations. I hope we can reverse that trend."

Bush’s first direct encounter with the EU will come shortly after his inauguration when he visits Brussels Feb. 22 for a special summit with EU leaders..

Luxembourg Prime Minister Jean-Claude Juncker, whose country currently holds the EU presidency, says he hopes the meeting will help forge closer relations with the United States.

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