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With the threat of international terror, environmental disasters and regional flashpoints, The North Atlantic Treaty Organization (NATO) and the European Union (EU) have both struggled to find new ways to meet the demands of security in the 21st century. The most critical factor in the success of these collective security institutions is for their respective leaderships to address these challenges in a timely manner. In this light, both institutions have begun the development of rapid reaction forces. NATO is finalizing the NATO Response Force (NRF), while the EU is developing the European Rapid Reaction Force (ERRF). This research endeavors to impart a firm comprehension of the implications of both NRF and ERRF advocates' positions and highlight centers of gravity for future NATO and EU security alignment. Additionally, this research aims to contribute a broader understanding for the current US national strategy on support for the ERRF expansion and NATO coordination. The thesis proposed in this research is that the ERRF is an essential part of the NATO transformation and that initial reservations on its competition with the NRF are understandable but improbable. Europe needs to improve its military capabilities to meet the demands of the post Cold War environment and balance the power of the Americans in NATO. The fiscal realities of the economies of the European states mandate frugality, and the resource sharing approach of the ERRF under the auspices of NATO is the currently best way for the European allies to both improve their capabilities and strengthen their contributions to NATO. Additionally, the US needs to restructure its current policies on utilization of NATO. The Americans must also accept that being a good partner means that the US can no longer pick and choose the NATO efforts in which it will participate and expect European nations to rally to our call when US interests are at stake.