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European policy-makers hope that by 2010 tertiary education in European countries will be 'connected' and become the much sought for European Higher Education Area. The reforms currently unfolding will modernize the daily practices of European higher education institutions. From transferability of degrees, employing a credit-based system and improving the capital base of institutions, the shape and make-up of tertiary systems will yield more alignment from disparate systems with heterogeneous parts. The policy innovations in Europe, as a consequence, have implications for American policy-makers as well. As European tertiary education evolves, it will pressure American policy-makers to adapt and react, especially as its leadership in educational capital has slipped as a result of Europe's surge in degree attainment.