We study spontaneous supersymmetry breaking in N=2 globally supersymmetric theories describing a system of abelian vector multiplets. We find that the most general form of the action admits, in addition to the usual Fayet-Iliopoulos term, a magnetic Fayet-Iliopoulos term for the auxiliary components of dual vector multiplets. In a generic case, N=2 supersymmetry is broken down spontaneously to N=1. In some cases however, the scalar potential can drive the theory towards a N=2 supersymmetric ground state where massless dyons condense in the vacuum.
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