In light of recent developments in educational policy and the positioning of vocational education and training (VET) across the European Union, it was timely to explore these new directions and the lessons for Australian VET. A striking feature both in the European Union and Australia is the wide scope of issues that governments are addressing and the role they envisage for VET. The nine most common themes: higher education and VET inter-relationships; validation of non-formal and informal learning; access, inclusiveness and learner engagement; development of VET teachers; adult and continuing education; retention and guidance services; employer engagement and the role of social partners; and key competencies for lifelong learning and higher-level apprenticeships. A list of emergent themes in recent European literature is appended. (Contains 5 tables.) [Funding for this report was provided through the Department of Education, Employment and Workplace Relations.]