In this Commentary, CEPS Director Daniel Gros and Stefano Micossi, Director General of Assonime, hold up policy coordination at the EU level as an effective remedy for handling the negative spillover effects resulting from uncoordinated policies in the critical areas of labour market reform and immigration. By concentrating on appropriate policies to sustain the integration process while at the same preserving the European social model, they argue that the European Council would again become a relevant policy forum where the real needs and hopes of EUcitizens could find effective responses.