The balances of economic and political influence are changing. Fierce competition, the transformation of the economic interdependencies into a weapon, the return of conflict to the European continent, are only some of the global challenges that require solutions. The new institutional cycle in the European Union begins in this complex environment. What are the main tasks, how to meet the challenges, what are the dilemmas that need to be resolved? The answers to this questions are not unequivocal. However, it is obvious that there is a growing need for greater coherence and coordination in solving complex problems. The analysis of the dilemmas that the European Union has to resolve lead to several key themes: first, how to achieve and guarantee economic security without succumbing to the temptation of protectionism; second, how to achieve a balance between the ambitious goals of the green transition and the need to increase the competitiveness of the European economy; thirdly, how to combine the geopolitical imperative to support the candidate countries and their EU membership with the requirements for strict implementation of the criteria, as well and with the real preparation of the European Union to accept new members; and last but not least how to combine the need for huge investments for the green and digital transition and at the same time to observe financial discipline. This joint publication of the Martens Centre and the Hanns Seidel Office in Bulgaria, with the cooperation of the University of Sofia “St. Kliment Ohridski” addresses all of these issues and formulates clear goals and policy recommendations for a thriving European Union.