So arrived Obama on his first European tour as President, with the stakes – the survival of the global economy – higher than ever before and the pressure heavy on the shoulders of a new President of the world’s biggest economy from where the financial crisis originated.

Indeed, reports leading up to the G20 summit – the meeting of countries with the 20 biggest economies – gave the impression that there was a growing divide, especially between the US and the EU, and resentment towards the US for starting the mess and then asking everyone to make sacrifices to help clean it up. The collapse of the US economy over the past year has undermined any moral authority it had in preaching about financial deregulation, world trade, and oversight of investments. Kenneth Rogoff, former chief economist at the International Monetary Fund (IMF), expressed this to Germany’s Spiegel. “The US is in no position to be lecturing anyone on macroeconomic policy right now.”

President Obama presenting his ideas at the London Summit.

French President Nicolas Sarkozy and German Chancellor Angela Merkel led the way in opposition to more government spending and in favor of more financial regulation, whereas the US and UK were a bit cooler on the latter part and more inclined to emphasize spending. This is despite the fact that Germany, including its economic safety nets and social programs, has invested almost as much proportionally as the US for this year (1.5% GDP against 2% GDP).

But in spite of differences in position, the leaders of the G20 countries were able to seize the moment and agree on an historic accord worth $1.1 trillion that will invest heavily in the IMF, with its aid and credit programs, in trade and in new financial regulations. As Reuters reported, there was something for everyone: from a support of fiscal stimulus (US, UK, Japan) and market regulation (France and Germany) to a stronger IMF (Australia, Canada, South Africa, Russia, Argentina, China, India, Saudi Arabia) and a boost in international trade (Brazil, UK). Other issues tackled included regulating tax havens, fighting protectionism, and discussing a possible new global reserve currency to replace the US dollar; this last idea was especially proposed by China and Russia.

Although the effectiveness of this new deal has yet to be seen, the overall feeling was that of enthusiasm, and the change in US position was a catalyst. As the BBC reported, President Obama rejected the traditional idea of a “Washington consensus of unfettered globalisation and deregulation”, in favor of “a more balanced approach to regulating markets rather than letting them run free.” This initiative and openness to change certainly helped the outcome, and as the Economist wrote, “[Obama's] aura seemed to glow ever brighter as he made his first foray into global, crisis-busting diplomacy.”

Besides the multilateral summit, there were a series of bilateral meetings between Obama and other heads of state. Speaking with Russian President Dmitry Medvedev, he agreed to visit Moscow in July while forging new cooperation on nuclear disarmament and security issues pertaining to Iran and Russia”s relationship with NATO. After meeting cordially with China’s Hu Jintao, he announced a Sino-American “strategic and economic dialogue” beginning in Washington, DC, this summer. Obama also met with King Abdullah of Saudi Arabia to discuss numerous issues, especially the Middle East.

This willingness to set aside differences and cooperate was not limited to the US. Last year, France had been criticized harshly by China for meeting with the Dalai Lama and protesting against the Beijing Olympics based on China’s crackdown in Tibet. In London at the G-20 summit, however, Jintao and Sarkozy sat together at dinner, with France pledging to recognize Tibet as part of “one China.”

Following the G-20, the Obamas arrived in Strasbourg, France to much fanfare, where the President exchanged the traditional bisous (kiss on the cheek) with Sarkozy, as a sign of friendship. But the media did not focus on that, instead going into a frenzy about Michelle Obama and Carla Bruni Sarkozy, two classy First Ladies, meeting for the first time.

Indeed, Michelle was almost as big a part of the show as her husband, impressing the Queen of England – who asked to keep in touch – visiting a hospital in London and discussing AIDS prevention with Bruni. Much as President Obama had a personal, engaging effect on his fellow leaders, his wife seemed to touch those she met. Following her visit to a hospital and cancer center in the UK, the director expressed her gratitude to the BBC: “The warmth and patience [Michelle] showed and the time she took to engage with everyone was greatly appreciated.”

Barack Obama then gave a speech at a “town hall” like event in a sports hall in Strasbourg, where more than 4000 students listened intently and asked him questions. The event finished with a standing ovation for the First Couple – a striking sign of respect and enthusiasm in France that is far from what former President Bush could have expected.

At a joint press conference with President Sarkozy, the French President pledged his support of the mission in Afghanistan, as part of a longstanding Franco-American alliance. The French newspaper Figaro contrasted the two presidents’ styles, however, stating that Sarkozy was “an attacker, always ready to get involved in the mix” whereas Obama appeared “calm and able to take a distant view of events”. Nonetheless, it described their relation as close: “if it’s not love, it certainly is close to it.”

Among other issues discussed, Obama voiced his support of a strong EU security defense presence, thanking France for their leadership in Afghanistan. Indeed, despite public opposition to French involvement, Sarkozy has remained determined to join the NATO military command, which was officially recognized this weekend at the NATO summit and 60th anniversary. Obama and Sarkozy, who appear best buddies, are next scheduled to meet on the D-Day beaches of Normandy on June 6th to mark the 65th anniversary.

As NATO recently agreed to boost troop numbers in Afghanistan especially during August presidential elections, President Obama affirmed that “”all of Nato understands that al-Qaeda is a threat to all of us,” as reported by the BBC. Obama also noted his gratitude for France after President Sarkozy agreed in principle to take in at least one detainee of Guantánamo Bay, once it closes. This represents a stronger, united front in NATO, but potential for conflict remains, including choosing the new Secretary General of the organization. The favorite, Danish Prime Minister Anders Fogh Rasmussen, has been opposed by Turkey for supporting the controversial Prophet Muhammad cartoons in Denmark.

Turkey will figure as the last stop in President Obama’s first major trip abroad in office, stopping in the capital Ankara and the economic center Istanbul. Before then, he will attend an EU-US summit in Prague, Czech Republic. This could prove interesting and unsettling at the same time, as the Czech Prime Minister Mirek Topolánek has been ousted out of government while they retain the EU’s rotating presidency. He also was the one to criticize Obama’s stimulus plans as a “road to hell”, not such welcoming words for a visiting foreign dignitary.

It remains to be seen whether or not this trip will produce effective and concrete, longstanding results, but the signs so far are encouraging.

Some quotes were translated from the French articles. Links:

http://www.lefigaro.fr/international/2009/04/04/01003-20090404ARTFIG00215-sarkozy-et-obama-affichent-leur-amitie-a-strasbourg-.php

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