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Ongoing developments in the Arctic have attracted the attention of the five Arctic coastal states; Canada, the U.S., Russia, Denmark and Norway. However, they have also caught the attention of external stakeholders such as China, South Korea, Japan, NATO and the European Union. Considering how these external actors might attempt to influence the future of the region, there is a need for knowledge about their Arctic ambitions. The EU is an interested stakeholder that considers Arctic issues important enough to desire a standalone and coherent Arctic policy. Studying the challenges and opportunities that the EU is facing in developing such a policy might provide knowledge about European Foreign Policy, while also offering an important insight into the EU as an actor in the north. This thesis firstly locates Arctic issues within the European policy process before studying intra-institutional and inter-institutional relations between the European Commission, the Council and the European Parliament. Underpinning the study is an eclectic analytical framework of Foreign Policy Analysis, Multi-level Governance and the concept of coherence in foreign policy.