A strong European economy is essential to an effective transatlantic partnership. Yet key European countries — especially Germany — are struggling to resolve deep-rooted macroeconomic problems. The future of important but admittedly unpopular economic and social reforms is in doubt.

This bulletin is an update to a July 2003 policy paper that addressed the challenges of formulating economic, energy and environmental policies designed to reconcile the drive for economic growth with the need for greater environmental protection, especially of air quality.

Recent events, both in energy development and the ongoing international campaign against nuclear proliferation have sharpened these questions. In the hope of generating ideas helpful to policymakers who are grappling with these questions, and in the context of the ongoing study and action plan undertaken by the directors of the U.S. national laboratories, the Atlantic Council convened a seminar on the relationship between proliferation and the future of nuclear power on October 29-30, 2003. The seminar participants concluded that, with the proper institutional support and appropriate nuclear energy technologies, nuclear power can play a significant role in meeting energy demands within the framework of a reinforced non-proliferation regime.