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This concise but wide-ranging work explores the major political, economic, and strategic challenges confronting the European Union in the context of a rapidly changing geopolitical environment. Steve Wood and Wolfgang Quaisser consider the actors and issues at the center of current developments in the integration process. Beginning with some basic conceptual questions-for example, what is Europe?-they focus on the Union’s increasingly complex politics and economy. Their discussion ranges from political economy, to policy reform and institutional change, to the arena of international relations. They also address the more intangible factors of European identity and common political will. An intriguing set of possible future scenarios concludes the authors’ up-to-date examination of the EU after enlargement. About the Author Steve Wood is lecturer in political and international studies at Flinders University (Australia) and associate research fellow at the Osteuropa Institute in Munich. Wolfgang Quaisser is senior research fellow at the Osteuropa Institute and lecturer in economics and social policy at the Academy for Political Education. Table of Contents Setting the Stage A Short History of European Integration Institutions and Policymaking Stumbling Blocks and Unresolved Issues The Political Economy of Deepening and Widening Is There an Optimal Size of the Union? Eastern Enlargement The Single Market Effects Economic and Monetary Union The Lisbon Agenda The EU Budget and Financial Redistribution Is a European Economic and Social Model Still Possible Conclusion States, Publics, and Europeanization Institution, Integration, and Inertia Decisionmaking Processes Domestic Contexts A Constitution for Europe? Overcoming Deadlock on the Constitutional Treaty Conclusion Key Policy Areas: Developments, Reforms, and Resistance Voting Power and Funding Distribution The CAP Regional Policy Budget and Financing Reform Environmental Policy Energy policy Conclusion Becoming a Global Actor Common Foreign and Security Policy (CFSP) European Security and Defence Policy (ESDP) National Military Forces and Defense Policies Armaments and Technology Financial Resources and Funding Mechanisms Transatlantic Relations and NATO China Energy Security and Terrorism Conclusion Dealing with the Neighbors The Limits of Ambiguity Democratization, Stabilization, and Security Interests, Value, and Power EU Public Opinion and the Shift from Future Members to "Friends" The Eastern Flank The Southern Flank The Balkans Turkey Conclusion Considering Europe’s Future The EU in Crisis The EU as Lame Duck? The Consequences of EMU British Europe or Core Europe? Defense, Security, and the Fight Against Terrorism Wider Europe, Wider Responsibility, Wider Risk Conclusion List of Acronyms Bibliography Index.