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The Bologna Declaration was signed in 1999 by 30 European countries committed to the creation of a 'European area of higher education' (HE) that was announced in the Sorbonne Declaration a year earlier. Its aim is to enhance the cohesion and compatibility of HE systems within Europe and their attractiveness throughout the world. This chapter examines the reform of the European HE system through the Bologna Process and the key role of employability in the European labour market in the Bologna Process. Driving these reforms is the same employability and skills agenda that underpins the reform of the vocational education and training (VET) system. The report concludes that the recent review of the Bologna Process undertaken in Berlin in 2003 indicates that 'the Bologna agenda for convergent structural reforms has every reason to continue all over Europe'.