This report puts together the main findings of a study (Maastricht study, Leney et al. 2004) examining developments in VET and progress towards the Lisbon and Copenhagen goals in 31 European countries. The report considers key challenges facing VET and looks at efforts made at national and European levels. It compares and contrasts the state of VET in Europe with that of competitor countries, such as Australia, Canada and the US. The report puts forward conclusions and recommendations for future action to improve the contribution of VET to meeting the Lisbon goal. This is for the EU to become the most dynamic and competitive knowledge-based economy in the world, delivering sustainable growth, generating more and better jobs and creating more social cohesion. The report is intended to inform reflection and act as a stimulus for debate. It includes examples of practice and data on key indicators to enable policy-makers to benchmark their own systems in relation to others.