  We show that contrary to the common lore it is possible to spontaneously
break N=2 supersymmetry even in simple theories without constant
Fayet-Iliopoulos terms. We consider the most general N=2 supersymmetric theory
with one hypermultiplet and one vector multiplet without Fayet-Iliopoulos
terms, and show that metastable supersymmetry breaking vacua can arise if both
the hyper-Kahler and the special-Kahler geometries are suitably curved. We then
also prove that while all the scalars can be massive, the lightest one is
always lighter than the vector boson. Finally, we argue that these results also
directly imply that metastable de Sitter vacua can exist in N=2 supergravity
theories with Abelian gaugings and no Fayet-Iliopoulos terms, again contrary to
common lore, at least if the cosmological constant is sufficiently large.
