European higher education has experienced substantial changes as a result of the ongoing implementation of the "Bologna Process." Twenty nine (29) European countries signed the "Bologna Declaration" in 1999 committing themselves to transform, through cooperation, an archaic and separated assortment of higher education institutions. In 2010 the participant countries, which had increased to forty seven (47), evaluated the progress made and set up a new agenda for the next decade. This paper outlines the ambitious objectives of the "Bologna Process"; analyzes the challenges faced; and the significant changes that have taken place in the "European Higher Education Area." The possible impact on higher education around the world is considered. The analysis is based on a review of the literature and selected documents published by key stakeholders in the process of transformation.