This report argues that the importance of EU-NATO cooperation, based on shared values and interests, has become more critical than ever. Hence, the report seeks to identify and analyse the most crucial and promising areas of cooperation between the EU and NATO. It is divided into three parts. The first examines the short history of EU-NATO cooperation on defence and security from 1998 up to the present day. The second part focuses on two areas of cooperation: hybrid threats and strengthening defence capabilities. The third part offers conclusions and recommendations, stressing that for EU and NATO member states there is no “business as usual“. The two areas highlighted in the report, countering hybrid threats and developing European defence capabilities, offer avenues for new and much-needed cooperation. The member states should understand that developing these capabilities is not beyond their reach, should they decide to act together.