Some wise words for George from Angie

Germany has made a significant start to its presidency of the EU: in emphasising the economic relationship with the US, it has chosen a strategic issue rather than a tactical crowd-pleaser. As ever with the EU, however, it now remains to be seen whether it can deliver on the words - and then convince subsequent presidencies and other member states to follow the same path.

While the economic ties between the EU and the US are undoubtedly immense, and growing each year, the standing rhetoric is that NATO is the lynch-pin of transatlantic relations, and defence and security therefore are the priority strategic areas. Since the end of the Cold War the veracity of this rhetoric has been diminishing and increasingly so since the very public disagreement over the Iraq war which split the alliance. Nonetheless, the US - and especially the Bush administration - have clung to it, repeating it shrilly at every juncture - not least at the last NATO summit in Riga in November.

The EU member states in NATO have tended to follow the US line, with varying degrees of interest and emphasis. While the EU, being a separate institution, has quite correctly kept quiet on the role of NATO in the transatlantic relationship. At the same time, however, the Union has undoubtedly focused on building a formidable partnership with the US, with a strong emphasis on trade and competition, and increasing ties in many other areas. The ever-expanding US mission to the EU, covering ever more and more detailed issues, suggests the importance of this partnership is quietly acknowledged in Washington, despite its rhetoric.

In reality it is the trillions of euros worth of trade, investment and ownership between the two blocs that is the true underpinning of their common security. As each other’s largest trading partner and direct foreign investor, they have an incalculable interest in ensuring each other’s continuing security and viability. This is not to suggest terrorism or common defence are totally irrelevant, but it does reflect that in the absence of a defined shared enemy - such as the Soviets during the Cold War - common security relies at least as much, if not more, on sustaining mutual economic strength and the resulting way of life: these are the targets that the modern enemies of the West seek to attack, far more than the traditional aims of territory.

Both the EU and the US know that the significant strategic relationship between them is economic - but Germany has now taken the bold step of bringing this issue into focus. In her meeting with President Bush as the year commenced Chancellor Angela Merkel noted they had discussed her ideas for enhanced transatlantic economic co-operation - and even a future EU-US common market. She was optimistic, but also realistic: "It’s certainly an uphill battle. I always describe it as a sort of thick board that needs to be chalked at. And what we’re dealing here with is, for example, patent laws, international financial markets, protection of intellectual property rights, and so on."

President Bush, unsurprisingly, did not mention the issue: he remained with international security and defence, veering out only to touch upon the failing Doha round of world trade talks and the environment, in both cases defending a strong unilateral US stance. Yet he also noted that "the relations between Europe and the United States are vital. And sometimes the relations are/can be difficult…Angela always gives me good advice as to how to deal with the common problems we face in order to make sure that our alliance works for the common good."

Angela advised establishing a working group on enhanced economic co-operation, to prepare for the next EU-US summit. Hopefully George will listen to her advice on this matter too.

• Ilana Bet-El is an academic, author and policy adviser based in Brussels.

Germany has made a significant start to its presidency of the EU: in emphasising the economic relationship with the US, it has chosen a strategic issue rather than a tactical crowd-pleaser. As ever with the EU, however, it now remains to be seen whether it can deliver on the words - and then convince subsequent presidencies and other member states to follow the same path.