Pending clarification of further enlargement prospects for the whole of the Western Balkans, Michael Emerson argues in this paper that there is every reason to consolidate the positive recent developments with further initiatives of strategic importance to the region. He explores two outstanding candidates for this purpose: 1) enlargement of the existing Customs Union of the EU and Turkey to include the whole of the Western Balkans, and 2) a South-East European Schengen Agreement for the free movement of people.