The ‘wider Europe' initiative opens the possibility for a far-reaching association of the EU's eastern and southern European neighbours which, by offering ‘everything but institutions' (Prodi), proposes an alternative to membership. This article presents this initiative as part of an ambitious external governance agenda by the enlarged Union with the aim to manage its new interdependence in an altered geopolitical context. Focusing on the conception of interdependence and the institutional configuration of EU relations with its near abroad, external governance is defined and examined in three prominent ‘soft security' issues: justice and home affairs, environmental and energy policy. It is argued that external governance seeks to expand the ‘legal boundary' of the Union with only limited openings of its ‘institutional boundary', thereby oscillating between an inclusionary and exclusionary approach towards its near abroad.