This book discusses the European Union’s approach to governance reform in its development assistance relationships with various groups of developing countries. A group of expert authors outline the general features of the position on governance taken by the EU, which is currently the major multilateral donor of development assistance, and discuss the implementation of EU policies in a set of cases: the group of African, Caribbean and Pacific (ACP) states, the New Partnership for Africa’s Development (NEPAD), Southeastern Europe, Central Asia, the Euro-Mediterranean, Latin America and fragile states. The contributions to the book argue that the EU’s position on governance reform, particularly since the adoption of the European Consensus on Development in 2005, has had distinctly neoliberal overtones. The EU’s governance-related strategies have been instrumental to deepening market-based reform in aid-receiving countries. Policies on state-building adopted by the EU reflect mainly the interests of and ideas embraced by the EU and its member states. To an important extent, the rhetoric accompanying EU policies does not match with the political and social dynamics inherent in governance structures on the ground in many of its aid-recipient partner countries.This book was published as a special issue of Third World Quarterly.