One of a series of studies related to the Delphi research project: "Policy Instruments for Higher Education in the Western Europe of the Future", this paper presents material for the discussion and formulation of a European higher education policy in light of the single market introduction in 1992. The first chapter, "Hypothesis and Problem Formulation", proposes that the development of Western Europe calls for a supra-national oriented higher education policy and suggests five questions that flow from that hypothesis. The second chapter, "The EC (European Community) and Higher Education" focuses on EC activities and EC higher education in practice. The third chapter, "Towards a New European Higher Education Policy", outlines results of a study which surveyed 700 higher education experts, and offers suggestions regarding the major obstacles to enhance internationalization (maintaining national autonomy, languages, recognition of courses). This chapter also reviews previous attempts, possible scenarios, and the export of student grants and loans. The fourth chapter, "The U.S. Case: the Potentiality of Federal Higher Education Policy," assesses the balance of power within the U.S. system and its favorable aspects. The final chapter, "Towards an Agenda for European Higher Education Policy," offers a series of recommendations, a list of possible barriers, and a review of conclusions. Thirty-seven references are included. (JB)