The recent controversy over Iran's nuclear programme represents an early and important test for a distinctively European approach to addressing concerns about suspected programmes for the development of weapons of mass destruction. Against this background, the report brings together European and Iranian perspectives on a range of security- and proliferation-related issues that have a bearing on diplomatic efforts to resolve the controversy. The contributors describe the discussions under way between Europe, Iran and the International Atomic Energy Agency aimed at clarifying the scope and nature of Iran's nuclear activities. They examine the development of the European Union's strategy to combat the spread of WMD; Iran's evolving security and defence structures and policies, including Iranian thinking about deterrence-based defence strategies and the requirements for credibly implementing them; and the internal dynamics of security policy decision making in Iran. The report highlights some of the problems and possibilities inherent in the EU's efforts to implement a more targeted, multifunctional strategy to prevent WMD proliferation.