The challenges that face the Balkans today are relatively benign compared to those that confronted the region a decade ago. Regional cooperation is ongoing and the democratic process is taking hold. Nevertheless, the region's transition is not yet complete and there. is a compelling need for further efforts. Especially when America's gradual retreat from Europe is taken into consideration, the need for the EU to manage this transition is evident. ln this regard, it can be said that the Balkans present the principal testing ground of the EU's CFSP and the ESDP. This paper tries to focus on some of the challenges that face the region and offers ways for the international community; particularly the EU, to deal with them effectively.