The European Security and Defense Policy (ESDP) represents a long- term project on the part of the European Union (EU) members to perform a broad range of operations, including crisis management, peacekeeping and peacemaking, known as the Petersberg Tasks. The EU's goal is to develop capabilities for autonomous military action in crises in the event that the North Atlantic Treaty Organization (NATO) as a whole is not engaged. Progress in developing capabilities necessary to support the ESDP has, however, been disappointing. Indeed, there is currently a mismatch between EU capabilities and ambitions. The shortcomings in EU capabilities reflect Cold War procurement and military planning as well as an unwillingness of most of the EU governments to spend more on defense. Although increasing military budgets would help to reduce the mismatch, EU members would also have to improve the efficiency with which funds are spent. This would require changes in the EU's military-industrial base, procurement policy, technology acquisition and R&D practices as well as in enhanced transatlantic cooperation. Achieving the goals of the ESDP will also require the EU member nations to deepen their consensus about their purposes and thereby reduce the many ambiguities that currently surround the ESDP.