The study takes stock of current trends in regional integration processes in the Mediterranean. Examining regional dynamics on both the North-South and South-South axis, the study argues that political and structural impediments continue to hamper regional integration. While North-South cooperation seems to be moving out of its temporary impasse, the Euro-Mediterranean project has changed its character and has become increasingly fragmented. South-South integration, similarly, has made a step forward with the establishment of GAFTA and the Agadir Process, but remains weighted down by a lack of political commitment and serious structural impediments. In the absence of political support, globalisation has further accentuated a growing trend towards regional fragmentation. Movement towards deeper integration therefore remains primarily limited to a bilateral level. In order to prevent a further fragmenting of the Mediterranean region and to assist southern Mediterranean countries to overcome structural barriers to integration, the study recommends a greater emphasis on interregional cooperation and more European support for South-South integration.