The 9/11 terrorist attacks in New York and Washington lifted counter-terrorism to the top of the European security agenda. The bombings in Madrid of March 2004 and in London of July 2005 proved that Europe is also a target of the new forms of international terrorism. The EU has since been trying to react to the terrorist threat with a comprehensive strategy grounded on four core objectives: prevent, protect, pursue and respond. The Union has also reshaped its institutional and legal counter-terrorist framework. The role of some EU bodies has been strengthened, while new institutional actors have been set up. The most important EU institutions in the fight against terrorism have proved to be the European Commission, Europol and Eurojust. Despite some good results achieved, lack of co-ordination and difficulties in information sharing are weaknesses that still hamper the realization of effective intelligence and judicial co-operation. A new common European definition of terrorist offences, the introduction of the European Arrest Warrant and the use of biometrics are pioneering legal instruments in counter-terrorism. Such legal tools have enhanced the efficacy of the EU action in preventing and suppressing terrorism. On the other hand, they have raised concerns with fundamental rights and civil liberties. This paper is aimed at providing an initial evaluation of both institutional and legal aspects of the EU fight against terrorism. Whilst acknowledging the achievement of many positive results, this assessment leads also to the conclusion that the European Union has to step up further its efforts to remedy a number of inadequacies and weaknesses arising in both the institutional and legal frameworks of the EU counter-terrorism response.