The intention of this paper was to contribute to the reflection and debate on cultural co-operation in Europe in general and to the potential creation of a ‘European Observatory on Cultural Co-operation’ in particular. It outlines three scenarios including the creation of a new and effectively centralised observatory; set up a network of corresponding units with a centralised administration and coordination unit; a fully decentralised or network approach. While it does not take a position on these three scenarios, the paper does indicate that the creation of a European observatory in itself will not lead to a huge acceleration in cultural engagement in Europe. However, failure to take any action will simply lead to a widening of the gap between the political rhetoric at European level on the importance of culture and the reality experienced on the ground.