The EU and 12 countries of the Middle East and North Africa (MENA) engaged in 1995 in the Euro-Mediterranean Partnership (EMP) in political, economic and cultural matters with the aim to foster cooperation, stability and prosperity around the Mediterranean Basin. The Economic and Financial Partnership (EFP) plays a central role in the EMP design and implementation, which is centered on economic and trade integration as a starting point for and an anchor of socio-economic development in the MENA region. Against this background, this paper reviews the situation in the MENA partner countries and the past performance of the EFP. It analyses the association agreements, economic cooperation and financial assistance, discusses the major obstacles, and outlines the potential of the EFP to shape the European Neighborhood Policy.