The South Caucasus suffers from a security deficit and there is a significant risk of increased instability and conflict in the region. Current security frameworks are inadequate, both for preventing new conflict and for settling long running disputes. Regional organisations have lost influence at the expense of Russia, Turkey and the US. However, the regional powers have been unable to reverse the drift towards instability. Without action, a further deterioration in the current situation of insecurity and even conflict is likely, with far reaching negative consequences for the population of the region and for neighbouring countries. The European Union is regarded as a relatively neutral player by Armenia, Azerbaijan and Georgia and could make an important contribution to filling the security deficit in the South Caucasus through a concerted and comprehensive conflict resolution approach.