The Euro-Mediterranean Energy Partnership between the 15 EU member states and the 12 Mediterranean countries of North Africa and Eastern Mediterranean is functioning since 1995 with an action plan for the development of a Free Trade Area by the year 2010. The process is highly motivated by the mutual interests that both parties have. The Mediterranean countries see it as a vehicle to associate themselves with their partner in the north and secure technical assistance, while for the EU, the process is expected to create a favourable and stable climate for energy investments and to secure access to the energy sources available in the region. The policy instruments have been established and the basis of the dialogue has been agreed through the adoption of three energy policy objectives, namely security of supply, competitiveness of the energy industry and environmental protection. The paper aims to present in a coherent way the energy policy status of the Mediterranean countries involved in the Partnership and identify the challenges and the priorities to be addressed. Though a policy paper, the authors aim to cultivate the ground and provide a solid basis for future research derived from the need to develop guidelines for the achievement of the above objectives. (C) 2003 Elsevier Science Ltd. All rights reserved.