The purpose of this report is to assess the main challenges to the principle of freedom of movement of persons in the enlarged European Union. The right to move freely across the EUu0092s internal borders represents one of the fundamental freedoms of the internal market as well as an essential political element of the package of rights linked to the status of EU citizenship. The scope and the state of the principle of free movement of persons is assessed by looking at the most recent case law of the European Court of Justice and the recently adopted directive on the rights of citizens of the European Union and their family members to move and reside freely within the territories of the member states. But what are the hidden and visible obstacles to free movement of persons in Europe? How can these barriers be overcome to make free movement and residence rights more inclusive? This working document addresses these questions along with the following issues: Who are the beneficiaries of the free movement of persons in an enlarged Europe? What is the impact of the recent legal developments in the freedom of movement dimension, such as the European Court of Justice case law and the new directive? To what extent are pro-security policies such as the Schengen Information System II and an enhanced interoperability between European databases fully compatible with the freedom of movement paradigm?