2003 was a difficult year which started off with divisions on Iraq and concluded with the flop of the intergovernmental Conference in Brussels. But the annus horribilis was perhaps less horrible than at first thought. Important steps to clarify the problem of political identity and internal leadership of the EU have been accomplished. Progress has been made on security and defence but also on foreign policy. The lines of the debate on the enlarged Europe appear to be clearer today and it is not ruled out that such an agreement may be gradually pieced together in 2004 even if it is evident that Europe will not have the same characteristics as a real political Union. Future developments will see an increase in the internal flexibility of the Union through reinforced cooperation and «structured» co-operation on Defence if the Constitutional Treaty is approved or through informal co-operation tools if it isn’t. Differentiated integration will be the key to the future. However to prevent «disintegration», it is essential for reinforced co-operation to remain open and be managed according to an inclusive perspective. only subscribers can see the full article