The idea of a European Neighbourhood Policy (ENP) was not unexpected when it was first presented in the Commission few years ago. Indeed, it seemed as an obvious and natural step forward in developing EU foreign policy. Many felt that the EU should have a single coherent policy for its near neighbourhood, and towards its Mediterranean partners. It seemed rational to have a new, fresh policy for a United Europe and, moreover, there appeared to be a genuine need for a policy that involved those that remained outside the EU, but for which the EU is an important partner. However, there is some distance between a policy idea and a functioning policy, which poses real life challenges. This paper examines the most important issues and tests that the ENP will face in the near future.