Several Australian universities have research, publications, subjects, programmes of study, or even Centres focusing on Europe and the European Union (EU), but European and EU studies in Australia have also encountered significant challenges. This article analyses their evolution from 1987 to 2014 and the sometimes discordant EU and Australian policies which have shaped their development. It first examines the origins of European Studies Centres in Australia, as well as links with the European University Institute (EUI) in Florence and the creation of the Contemporary European Studies Association of Australia (CESAA). It then considers specific EU initiatives and funding in the twenty-first century, such as EU Centres and Jean Monnet Chairs, and the impact they have had on EU studies in Australia. It concludes with reflections about the factors that have encouraged or impeded teaching and research on Europe and the EU in Australia and ways to mitigate them.