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Potential analysis of N=2 SUSY gauge theory with the Fayet-Iliopoulos term

We analyze the vacuum structure of spontaneously broken N=2 supersymmetric gauge theory with the Fayet-Iliopoulos term. Our theory is based on the gauge group SU(2) \times U(1) with N_f=2 massless quark hypermultiplets having the same U(1) charges. In the classical potential, there are degenerate vacua even in the absence of supersymmetry. It is shown that this vacuum degeneracy is smoothed out, once quantum corrections are taken into account. While there is the runaway direction in the effective potential, we found the promising possibility that there appears the local minimum with broken supersymmetry at the degenerate dyon point.