For three years, the transatlantic alliance was torn apart over the Iraq war.
But staking out a new global vision, US President George W. Bush vowed on Monday to make the struggle to secure Middle East peace the new glue binding America and Europe.
Building on a US diplomatic charm offensive, Bush opened a major speech at the start of a four-day European tour by cracking a joke over his widespread unpopularity in Europe.
He said he had been hoping for a reception like that given to US founding father Benjamin Franklin 200 years ago on his arrival in Europe, where "scarcely a peasant or citizen did not consider him a friend to humankind".
Pausing for effect, Bush added to laughter: "I have been hoping for a similar reception -- but [US Secretary of State Condoleezza] Rice told me I should be a realist."
But Bush's keynote speech in Brussels quickly turned to more serious matters.
"When Europe and America stand together, no problem can stand against us," Bush said as part of his bid to bury past discord over the Iraq war.
Bush quickly defined the top problem he wanted Europe and America to tackle: "Our greatest opportunity and immediate goal is peace in the Middle East," he declared.
The US leader also called for more European assistance in Iraq, criticized Syria's "occupation" of Lebanon and repeated demands that Iran abandon its nuclear ambitions.
Bush's main thrust, however, was on ending the Israeli-Palestinian conflict and pushing reform across the Arab world.
Given that EU leaders have long urged bigger US involvement in the Middle East, both issues were well chosen for Bush's fence-mending tour.
One of the biggest gripes among EU governments during Bush's first term was Washington's apparent unwillingness to adopt a more proactive role in the Middle East.
Similarly, the EU has long highlighted the need for MIddle East reform under its Euro-Mediterranean launched in 1995.
Bush more than delivered on Europe's expectations.
"This is a good omen," enthused a senior European diplomat who said Bush's remarks summed up what Europe had been seeking for many years.
The diplomat also noted Bush's entire speech had been "consensual," and brought Washington and EU capitals closer on a range of issues.
Bush repeatedly conjured up the image of America and Europe standing shoulder-to-shoulder in his wide-ranging address.
This, he said, was true in the past when the transatlantic alliance "frustrated the plans of dictators" but also in a new century in which "the alliance of Europe and North America is the main pillar of our security."
On the Middle East, Bush said Europe and the US had a clear vision: "Two democratic states, Israel and Palestine, living side by side in peace and security."
He warned that peace would only come if both parties made big efforts. Israel, said Bush, had to freeze its settlements and ensure a viable Palestine -- not a patchwork of "scattered territories."
Palestinian leaders, he stressed, must "confront and dismantle terrorist groups, fight corruption and encourage free enterprise."
Going beyond the Arab-Israeli conflict, Bush took aim at broader human rights, democracy and economic deficits in the Middle East.
In unusually blunt remarks, he urged close allies Egypt and Saudi Arabia to step up efforts towards democratic reform.
"We must expect higher standards from our friends and the Middle East," said Bush, who all but waved his finger at both countries.
The US leader was harsher with Syria, which he told to get out of Lebanon and stop meddling in Beirut's affairs.
In an ironic twist, Syria's military role in Lebanon is now even driving the US and France back together after their bitter estrangement over the Iraq war, which Paris strongly opposed.
Turning to Iran, Bush was surprisingly mild although he repeated his long-standing demand that Tehran must not be allowed to develop nuclear weapons.
A senior EU diplomat said it looked like Washington was finally coming around to Europe's stance that only a diplomatic deal could defuse the nuclear crisis with Tehran.
"We're working closely with Britain, France and Germany as they oppose Iran's nuclear ambitions as they insist that Tehran comply with international law," Bush said.
Britain, France and Germany -- the so-called EU 3 -- are seeking a diplomatic deal offering Tehran trade and aid in exchange for giving up its alleged bid to build a nuclear bomb.
As expected, however, Bush did not announce any plans for the US formally to join the European diplomatic bid as many in Europe have been demanding.
Earlier this year Bush refused to rule out using military force against Iran over its nuclear program, causing alarm in Eurocy.
"We must always remind Russia ... that our alliance stands for a free press, a vital opposition, the sharing of power and the rule of law -- and the US and all European countries should place reform at the heart of their dialogue with Russia."
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