If the European Union and its Member States are to compete successfully in an increasingly aggressive global market, whilst many other economies continue to get stronger, all parts of the European Union, Member States and the EU institutions, have to regulate smarter. The answer therefore is not to give up on rules, but rather to develop and implement good quality rules. Presenting both timely and relevant forms of European policy instruments in the field of financial services, public administration, transport, working conditions and social protection, this volume shows which kind of policy instruments work and under what circumstances. This will help all to overcome many of the impediments to using alternative policy instruments at the European level as appropriate responses to pressing European and global governance challenges, such as efficiency, accountability, transparency and legitimacy.