The EU has reached a turning point in the way it relates to the rest of the world. Changes in the global political and economic landscape following the cold war, along with widespread criticism of the wasteful and inefficient use of aid, has forced the EU to take a closer look at its external relations. As a different world takes shape at the start of a new century, the EU has to decide what role it should play in that world. The European Union has considerable potential to be a meaningful force for positive global change. Yet its potential is yet to be realised, and current initiatives to shake up the EU's role in development and poverty eradication fall short of what is required. Below Eurostep sets out a four-point agenda for political and institutional reform that the EU should follow if it is to realise its potential as a leading global player in tackling the challenges of the 21st Century.