	The United States and Europe

Common values, overlapping interests, and shared goals are the foundation of what is often described as the transatlantic partnership between the United States and Europe. Many observers stress that in terms of security and prosperity the United States and Europe have grown increasingly interdependent. This report summarizes key areas of shared interest and cooperation and highlights some of the main challenges in the transatlantic relationship. Members of Congress often interact directly with European legislators and officials to discuss a wide variety of topics. In the course of legislative activities or in exercising oversight of U.S. foreign policy, Members of Congress may choose to consider the dynamics of U.S.-European cooperation in terms of benefits versus shortcomings, alignment versus divergence, or partnership versus competition. While strong bilateral relationships between the United States and individual European countries remain a vital foundation for transatlantic relations, the relationship between the United States and the EU has been taking on a growing significance. The overall tone of transatlantic relations has been mostly constructive over the past six years, and many of the broad global challenges faced by the United States and Europe have pushed the two sides toward common or cooperative approaches. The crisis and conflict in Ukraine has since caused U.S. policy makers to rethink many assumptions about European security, and the United States continues to play a leading role in NATO and managing relations with Russia. Given that much of U.S. attention is also likely to remain centered on Asia and the Middle East, general U.S. hopes and expectations are that Europe should share a significant part of the burden when it comes to its own security, take a leading role on most regional and some other international issues, and continue to act as an effective partner in addressing a wide range of common threats and concerns. Although the crisis appears to have receded, there is a sense that its underlying causes remain unresolved and that basic questions about the future of further EU integration remain unanswered. Russia also became increasingly at odds with U.S. and European foreign policy, strongly criticizing the 2011 NATO operation in Libya, supporting Bashar al-Assad in the conflict in Syria, and thwarting U.S. and European efforts to address the violence in Syria through the United Nations Security Council. The U.S. and European analyses of developments have been largely aligned, and the two sides have openly sought to maximize their influence with parallel messages and mutually reinforcing actions, including extensive sanctions. Although Europe is likely to remain Russia's main gas buyer for some years, Russia is also seeking to diversify its markets by concluding pipeline construction deals with China and Turkey. Overall, in the years since the 9/11 attacks, transatlantic cooperation on counterterrorism has been strong. European policy makers have had significant concerns over the adequacy of data privacy safeguards in a number of U.S.-EU information-sharing arrangements. Iran21

Members of Congress have had an ongoing interest in U.S. and international efforts to reach an agreement that ensures that Iran's nuclear program can be used solely for peaceful purposes. Several developments in Europe's approach to the Israeli-Palestinian issue have fueled Israeli concerns about international "isolation" and diverged from U.S. Administration and Congressional views. Economic Relations

The United States and the European Union have the largest trade and investment relationship in the world. Proposed Transatlantic Trade and Investment Partnership

Since July 2013, the United States and the EU have been in the process of negotiating a Transatlantic Trade and Investment Partnership (TTIP), a proposed "comprehensive and high-standard" free trade agreement intended to boost jobs and growth on both sides of the Atlantic. U.S. and EU officials hope to initial a draft agreement by the end of 2015, but critics have raised objections that could pose obstacles. Many analysts observe that market confidence has improved considerably since 2013 and that conditions appear to have stabilized. In the aftermath of the reports, the European Parliament called for suspension of the U.S.-EU Safe Harbor agreement that allows commercial data exchanges, and there have been suggestions that the purported U.S. surveillance activities may have a wider effect on economic relations, including with regard to negotiations on the proposed TTIP. In addition, especially given the potential threat posed by the Islamic State and returning foreign fighters, officials indicate that cooperation between U.S. and European intelligence and security services has continued uninterrupted despite any loss of trust at the political level. The United States will take over the two-year rotating chairmanship of the Arctic Council in May 2015.
Due to extensive cooperation on a wide range of issues, the relationship between the United States and Europe is often called the transatlantic partnership. The two sides have many common values and concerns, and have grown increasingly interdependent in terms of security and prosperity. The transatlantic relationship and the main areas of U.S.-European cooperation and shared interest are likely to have continuing implications for U.S. policy during the 114th Congress. Members of Congress may have an interest in considering the dimensions and dynamics of current issues in U.S.-European relations in the course of oversight or legislative activities, or in the context of direct interactions with European legislators and officials.
According to most observers, the overall tone of transatlantic relations during the Obama Administration has been largely positive. At the same time, a constructive tone does not necessarily translate into tangible results with regard to foreign policy objectives or other goals. With respect to certain issues, U.S. and European policies have been at odds and have generated friction in the relationship from time to time.
This report summarizes key issues that both illustrate the nature of U.S.-European cooperation based on shared interests and present challenges in terms of the efficacy of such cooperation:
U.S. and European relations with Russia have become more adversarial in the context of Russia's annexation of Crimea and its actions destabilizing Ukraine. The United States and the European Union (EU) have imposed sanctions that, combined with low oil prices, have harmed the Russian economy. Rising tensions with Russia have altered previous assumptions about European security and affected debates about the future of the North Atlantic Treaty Organization and European energy security. The United States and European countries have been cooperating in efforts to counter the Islamic State and seek a political solution to the conflict in Syria. Recent estimates suggest that upward of 3,000 European citizens have traveled to Syria and Iraq to join groups involved in the conflict, and the potential threat posed by returning "foreign fighters" has become a central concern. U.S.-EU counterterrorism cooperation has been strong since 9/11, although differences regarding data privacy have posed some key information-sharing challenges. The United States and Europe remain central actors in negotiations seeking to reach an agreement that ensures that Iran's nuclear program can be used solely for peaceful purposes. While an extensive array of U.S. and EU sanctions have worked to isolate and pressure Iran, the final outcome of talks remains uncertain. The United States and EU share broad objectives with regard to resolving the Israeli-Palestinian conflict. Increased European support for recognizing Palestinian statehood, however, has diverged from the approach taken by the United States and strained Europe's relationship with Israel. The United States and the EU have the largest trade and investment relationship in the world. The two sides have been negotiating a free trade agreement, the Transatlantic Trade and Investment Partnership (TTIP) aimed at boosting jobs and growth on both sides, but obstacles could make it difficult to conclude a deal by the end of 2015. While the conditions that fueled the Eurozone crisis from 2010-2012 appear to have stabilized, there is considerable doubt that underlying economic problems in Europe have been fully resolved. Allegations of U.S. spying and surveillance programs in Europe have caused a sharp backlash and damaged transatlantic trust. Although tensions appear to have proven manageable and U.S. intelligence cooperation with European governments continues, data privacy concerns could complicate future talks on U.S.-EU information-sharing agreements. The United States takes over the chairmanship of the Arctic Council in May 2015. The Artic is increasingly viewed as a region of potential economic and geopolitical importance.
As the United States and Europe face a changing geopolitical environment, some observers assert that the global influence of the Euro-Atlantic partnership is in decline. In addition, the Obama Administration's announced intention of "re-balancing" U.S. foreign policy toward Asia has caused some anxiety among Europeans. Overall, however, most analysts maintain that the United States and Europe are likely to remain one another's closest partner, and that U.S.-European cooperation is likely to remain the foundation of international action on a wide range of critical issues.