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The closing days of the Bush administration dealt a final, ignominious blow to the already estranged relationship between the United States and Europe. Frustrated by what they saw as European intransigence, Bush trade officials enacted tough sanctions on America's European allies and brought a case before the World Trade Organization (WTO) about the European Union's ban on the import of chlorine-treated American poultry products.

The move underscored the state of affairs that has been the norm over the past eight years-that the trans-Atlantic relationship is in the doldrums. True, the relationship isn't at the lows that it reached in the run up to the Iraq war in 2003. True, much lip-service has been paid on both sides of the Atlantic to the "need to work together." But in the end, the damage done to transatlantic relations-straining both the American economic and political alliances with Europe- will be one of President Bush's most damning legacies.

Some have argued that repairing this relationship should not be a top priority in the first year of the Obama presidency. This would be a mistake. European countries are the essential partners in tackling some of the world's most difficult challenges. The consulting-firm Eurasia Group recently published its report on the top ten geopolitical risks of 2009 that listed three in Europe (#4 Russia, #8 Ukraine and #9 Turkey). In two other areas (#2 South Asia and #3 Iran/Israel), Europe is the United States' primary strategic partner. The Eurasia Group's list excludes climate change, restructuring the global financial system or dealing with China. Here as well, trans-Atlantic cooperation will be the primary determinant of success or failure.

2009 will be a tricky period for jump-starting the trans-Atlantic relationship. Aside from the economic crisis and the legacy of the Bush administration, Europe holds several major elections this year. German national elections in September will be particularly crucial for determining the direction trans-Atlantic relations will take. But re-establishing a viable and relevant trans-Atlantic relationship will require partnership with Germany- the nation that is at once Europe's economic powerhouse and its dark horse in political leadership.

On the economic front, the Obama administration must work with Europe in general, and Germany in particular, to stave off a greater global economic downturn. In the immediate short term, this means eliminating the highly controversial "Buy America" clause from the stimulus package. This clause is anathema to the spirit of economic openness that characterized the Washington G20 summit.

In the mid-term, the goal should be to re-ignite the Transatlantic Economic Council (TEC) as a coordinating institution for trade and capital-market regulation. Created in May 2006 during the German EU presidency, the TEC was the flagship project of Germany's grand-coalition government. The TEC was also created to facilitate reconciliation after the bruising period before the Iraq war. As such, Chancellor Angela Merkel has a strong stake in its success. The aim is to harmonize regulation and product standards, and craft a common trans-Atlantic capital market. The TEC could lay the foundation for coordinated efforts to overcome the current economic crisis. But if it is to succeed in this role, the TEC should remain in the White House, close to President Obama's core economic team.

On the political front, the key for the new administration will be to bridge the politically desirable in the United States with the politically possible in Europe. The Obama administration has already begun delivering on issues related to Guantanamo and climate change at a dizzying pace. This has delighted European publics and political elites alike. The task ahead will be to spin these domestic political wins into policy dividends from US allies in Europe. Germany will ultimately also be the keystone in any working transatlantic approach to Russia, a successful strategy for containing Iran and stabilizing Afghanistan.

This weekend, Joe Biden traveled in Germany to attend the annual Munich Security Conference, his first trip overseas as vice president. He saw again Germany's enthusiasm and curiosity about the new administration. But maintaining this spirit, and stoking the willingness to cooperate on the tough questions, will require a sustained effort, a steady hand, and an open ear on the part of the new administration.

Tyson Barker works for the Bertelsmann Foundation in Washington DC. He is a graduate of SAIS, Johns Hopkins and Columbia University and has worked extensively on transatlantic issues.