Changing skill needs constitute challenges for policy making in the attempt to achieve wider social and economic objectives of cohesion and competitiveness in the European Union. The Council resolution on new skills for new jobs (15. Nov. 2007) draws attention to the practical steps that need to be taken in education and training to provide citizens with better opportunities to succeed on the labour market. These cover three areas: equipping people with the skills necessary for new jobs; working on transparency and validation, and on the identification of training needs; and the need for a better anticipation of skills needs and gaps on the labour market. A European system for forecasting skill needs did not exist. Responding to the demand of EU policy-makers, and on the suggestion of national experts, Skillsnet, Cedefop’s network on early identification of skill needs, explores the feasibility of a European skill needs forecasting system on occupational and skills needs. Two main paths are being pursued: in the short-term, the set up of a pan-European forecasting model relying on available data and, in the longer-term, aligning national level sources to establish a European core forecasting system.