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Early in 2007, the European Commission published its Annual Policy Strategy for 2008 in which it presents its proposals for key initiatives to be taken forward in the next year and assesses their financial and human resource implications. Along with the four strategic objectives of prosperity, solidarity, security and freedom, and a stronger Europe in the world, the Commission identifies three cross-cutting priorities: tackling climate change, pressing ahead with the Lisbon Strategy and managing migration flows to the EU. Given the long-term impact that the document thus will have, especially in the Area of Freedom, Security and Justice in the EU (AFSJ), we consider it necessary to address some of the implications inherent in the articulated priorities and envisaged key actions. This paper addresses two main areas covered by the Policy Strategy which are intrinsically related to CEPS work in the AFSJ: 1. “Fighting Organised Crime and Terrorism”; and 2. “Freedom of Movement and Managing the EU’s External Borders”.