The European Neighborhood Policy (ENP) has failed in its goal of creating “a ring of well-governed states” around the EU’s borders. Instability, authoritarianism, civil strife, sectarianism, and international conflict characterize much of the EU’s hinterland to the east and to the south. Intolerance and archaic forms of nationalism are obstacles to political and economic development. The EU cannot impose democracy and the rule of law through political conditionality without an offer of membership. It must find new ways to advance its values and interests in adjoining countries. The EU’s new high representative for foreign affairs and security policy should propose to the member states a thorough overhaul of the ENP. Security, energy, and trade should be at the heart of the EU’s relations with its neighbors. A more strategic approach is needed, including dialogue with interested third countries, especially Russia, Turkey, the Gulf countries, and the United States.