As Europe awoke yesterday morning, most of the continent breathed a heavy sigh of relief and shared at least partially in the scenes of jubilation being beamed across the Atlantic to their television screens.

The vast majority of Europeans went to bed last night with bated breath, clinging to the hope that the American electorate would make what, in their opinion, was the only logical choice to be made.

Europe strongly supported Mr Obama’s candidacy following the last eight years of what they consider to have been misguided decisions leaving dire repercussions on the rest of the world.

And they were not to be disappointed.

Much of the world looks to Washington DC as the place where fundamental issues such as war and peace, and prosperity and strife are decided – a place to which Europeans for the last five years have looked with an ever-growing sense of trepidation.

Hopes are high that Mr Obama’s foreign policies will herald in a more inclusive, internationally cooperative approach. But once in office after his inauguration on 20 January, Mr Obama will face scores of daunting and sobering challenges on both the domestic and foreign fronts.

In yesterday’s acceptance speech, Mr Obama recognised the enormity of the challenges ahead as being the greatest in a lifetime, with the US engaged in two wars, what he described as a planet in peril and the worst financial crisis in a century.

There are also, he acknowledged, important alliances to be repaired. The road will be long, he said, and the climb will be steep. Speaking directly to the rest of the world he said “our stories are singular but our destiny is shared”, and he promised “a new dawn of American leadership is at hand”.

But now that the race is over the question remains as to whether Mr Obama will have the mettle to meet the challenges ahead. His mere election will not put to rest the financial meltdown, nor will it stave off an impending global recession. The international feel good factor stemming from his election could, however, serve to start repairing the situation.

He will also have his work cut out for him in shoring up America’s international image, and in repairing ties with traditional allies, mainly European countries, which have become strained under the outgoing Bush administration. On a similar note, Mr Obama has shown a willingness to talk directly with US adversaries such as Iran and Syria, in contrast to the Bush administration’s refusal to do so, an approach the Obama camp argues limits diplomatic options. The Middle East peace process could also expect an added impetus under an Obama administration.

Tuesday’s vote also speaks volumes for the maturity of the US electorate. “I was never the likeliest candidate for president,” Mr Obama conceded in his acceptance speech. But he nevertheless emerged victorious, seemingly against all odds – being an African American, just 47 years old, intelligent and eloquent – in many ways the antithesis of his presidential predecessor.

On another note, Republican Ambassador Molly Bordonaro, whose term is to soon expire, has been one of the most successful US ambassadors to Malta, and she will leave the country with a number of major accomplishments under her belt – a double taxation treaty, a visa waiver agreement soon to be etched in stone, crucial assistance for Malta’s Customs Department and invaluable assistance in immigration issues and with the construction of a new embassy underway.

It is hoped Mr Obama’s Democratic appointee will follow in her footsteps, and even solidify relations further.