Presidential Election in US Europe Welcomes Obama's Win
Europe was quick to congratulate US President Barack Obama on Wednesday morning as he won his re-election battle against Republican challenger Mitt Romney. Markets in European capitals appeared poised for a rally, but dark clouds loom ahead.
In the end, it wasn't even that close. US President Barack Obama easily surpassed the 270 electoral votes he needed to defeat Republican challenger Mitt Romney on Tuesday evening as swing state after swing state fell into the incumbent's column. At just after 1 a.m. on the East Coast, with his deficit insurmountable, Romney conceded defeat.
European stock futures signalled a strong opening on Wednesday morning on the news as the uncertainty hanging over the leadership of the US economy was removed. Analysts, however, fear that the bump will be short-lived as the first challenge of Obama's second term approaches, that of coming to agreement with Republicans on a deficit reduction deal to dodge the $600 billion in spending cuts and tax increases that will automatically go into effect on Jan. 2, 2013 in the absence of such a deal.
European Union leaders likewise released a statement on Wednesday morning congratulating Obama. "We have the pleasure of extending our warm congratulations to President Obama on his re-election as president of the United States of America," read the statement released by European Commission President José Manuel Barroso and European Council President Herman Van Rompuy. "The United States is a key strategic partner of the European Union and we look forward to continuing the close cooperation established with President Obama over these last four years, to further strengthening our bilateral ties and to jointly addressing global challenges, including in the fields of security and economy."