The UK assumes the EU Presidency at a time of unprecedented difficulty and complexity across the entire range of policy areas, particularly in the aftermath of the rejection of the EU constitutional treaty in France and the Netherlands. Challenges to the UK presidency concern the future of the EU institutional framework, EU enlargement, EU financial framework, economic and social reform, and asylum and immigration. However, there are three areas where the UK can steer discussion in a constructive direction: environment, development aid and the ESDP.