The vast majority of European states will contribute to the peacekeeping mission in Iraq if asked bilaterally. • Given its proximity, the European Union can provide substantial economic and diplomatic resources for stabilizing the region. • The European Union will seize upon the opportunities of greater regional democratization to practice diplomacy and crisis resolution. • The post-Iraqi war era provides an opportunity for NATO to reorient towards the Middle East. • European active participation on the global war on terrorism is predicated on clear success in the Middle East. Failure will result in a period of European isolationism.