Terrorism and immigration stemming from the Southern Mediterranean have made it to the top of the European security agenda since 11 September 2001. This paper analyses the European Neighbourhood Policy in the light of European security perceptions. It suggests that the reason why the EU has difficulties in coming up with a coherent policy towards the Southern neighbours are due to fact that the EU and its member states are in an immense internal and external crisis of identity. This crisis has been further aggravated after the French and Dutch ‘no’ to the European Constitution. The paper makes the argument that the tension between modernity and post-modernity, between the European model of export of universalism and the increasing tendency to close the borders towards the ‘others’ further aggravates the identity crisis. The paper concludes that these tensions are increasing thus making it still more difficult for the EU to behave as an exporter of European values.