Europe is bound by an enormous number of obsolete regulations and systems. New environmental, economic, social, and political developments and trends have challenged these systems, forcing Europe to re-think future strategies. The European Union has set 5 ambitious objectives, namely, employment, innovation, education, social inclusion, and climate/energy, which are to be reached by 2020. This presentation examines these developments, along with other exogenous factors or Mega Trends, that will transform the future of the continent over the next 10 years. It also provides an understanding of the inter-linkages of these Mega Trends and their implications for countries and industries on a macro level and for cities on a micro level.