The Republicans seized control of both Houses in the US mid-term elections and have tied President Barack Obama’s hands for the next two years in terms of introducing domestic policy initiatives. The president will look to the world stage to shape policy but the challenges are very tough. Victory presents the GOP with new challenges of its own. Is there room for compromise?

BILL CLINTON won the US presidential elections in 1992 on an economic agenda, despite the seminal international change his predecessor, George H. W. Bush, had decisively shaped. President Barack Obama's international agenda was highly ambitious but, so far, the results are modest and awaiting final results.

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Dr. Uwe Nerlich
The crucial test will come on the way to agreements over the cap on the federal debt increase. The cliff-hanger over the debt-ceiling in the Spring of 2013 is widely seen as a precedent, although views within the Republican Party now seem more diversified
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