The Bologna Process places special emphasis on the outcomes of higher education in terms of employability and key competencies. Taking Germany as an example, this article examines whether the introduction of a two-tier degree structure actually has led to an enhanced acquisition of key competencies. Based on constructivist learning theories, in addition, the article tests the hypothesis that an activating learning environment enhances the acquisition of both disciplinary and key competencies. Data are used from a survey among higher education graduates from 2005. The results of linear regression analyses suggest that the new bachelor programmes provide better conditions for developing key competencies, and also indicate what the ingredients of a competence-oriented teaching approach might be. (Contains 6 tables.)