My paper aims to explore the present situation in South Eastern Europe and the efforts of the regional and international actors to promote stability, security and economic prosperity. The main focus of the paper will be on discussing the impediments as well as the opportunities the SEE states are facing towards regional and European integration. SEE states that emerged from communism are mainly defined in terms of ethnic identities. Minorities are still discriminated against and are often excluded from full participation in the state structures. This has a heavy toll on the development of crossborder cooperation because it prevents border regions from cooperating with each other, due to over-centralised or authoritarian state structures. Discrimination, therefore, perpetuates insecurity and mutual suspicion among neighbouring countries. Moreover, feeling excluded from political processes, minorities often believe armed conflict and secession to be the most effective means of satisfying their political demands. Goals of secession and separatism were primarily expressed in former Yugoslavia through ethno-national mobilisation leading to tragic violence. The ethnic minorities must feel secure within the political and geographical entities of their own free choice Full membership of the EU remains the only future, that is a common future for the entire region that could generate joint efforts and convert former and present foes into future partners. Elaborating on the above argument it becomes clear that the EU should establish as soon as possible a clear statehood for Kosovo and increase its capacity to deliver that level of government determination to resolve ethnic conflicts. It is difficult to discuss regional strategies for democratisation and security without noting that the unresolved status of Kosovo may be a new source of regional instability in the region. A united SEE region will be much closer then to the spirit of a united Europe. Regional integration and regional ownership of the process can only be realistic options if the political will and the corresponding strategies are available at both the European level and at the level of the states and statelike entities in the region. For the region this implies that the consolidation of functioning, democratic entities has the highest priority, for Europe it implies a focusing of strategic involvement