To deal with perceived gaps in capabilities for crisis-management, since 1999 NATO has launched the Defence Capabilities Initiative and a Prague capability commitment. In parallel, the EU members have launched the WEU Audit of Assets, the EU Security and Defence Policy, the Headline Goal force catalogue, the Capabilities Action Plan and the Policy Action Plan. This book evaluates these NATO/EU initiatives in terms of the amount of additional security they are generating, and suggests new formulas that might produce greater output. Although the EU has become a net exporter of security and its members have a potentially wide security pallet at their disposal, coordination and cooperation is at best embryonic, often merely symbolic. The book assesses the substance of military and civilian capability initiatives by both NATO and the EU, the development of EU instruments and capabilities, the prospects for a strategic EU-US partnership, and identifies the major challenges and opportunities in increasing European capabilities for conflict prevention and crisis-management. The book argues that the main opportunities for increasing European capabilities lie in expanding national and functional coordination and cooperation within Europe, enhancing the EU's strategic decision-making capabilities, developing the spectrum of European civilian and military crisis-management capabilities, and establishing new pragmatic cooperation mechanisms between the EU and NATO.