The European Community (EC) is continually increasing its influence in all areas of European society, politically, economically, and now educationally. The future, it is argued, may see the EC as a supra-national policy maker for higher education as significant, as are national governments at the present time. This paper examines the role of the European Community (EC) in policy formation for higher education. Results of formal interviews with EC officials, faculty members, and higher education association representatives are presented, as are examinations of treaties and other formal documents which stipulate the power and authority of the EC. The report is divided into three sections. The first section explains the study's conceptual framework and methods. The second section describes the EC, its programs and activities in the area of higher education. The third section focuses on the question of what is, and what should be, the role of the EC in the processes of policy formation for higher education. The EC is discussed in its roles as starter mechanism (in initiating plans, programs, and activities) as policy influencer and as policy shaper. The EC is expected to be the driving force of a new European structure in higher education. (Contains eight references.) (GLR)