Abstract
The European Union (EU) is formally known as the European Community (EC) which had origin in the post-World War-II to bring stability in Europe. It is regarded as a political and economic organization with keeping only European countries as its member states. During the Cold War period, the EC/EU's role was to bring economic integration and political stability in the Europe. But, in the post-Cold War period or after the disintegration of the Soviet Union, it has been expanded its role and functions to other areas such as peacekeeping and crisis management operations, fight against growing challenges such as terrorism, Weapons of Mass Destruction (WMD), narcotic drugs and to establish peace and stability in the crisis region etc. The study throws light on expansion of its institutional structures, promoting and strengthening democracy among its member states and also addresses on how it enlarges of its membership to Eastern-European countries. At the end of the study it highlights on 'out of area' operation of the EU and what challenges are coming towards that operation.
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