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South Asia, where one fifth of humanity lives, is in a dire need of peace, stability and development which can be achieved much faster with the concept of cooperative living of nation states. The European Union has presented an example before the world in implementing this concept. The South Asia continues to be divided with almost closed borders and flexing of nuclear muscles by the two big members of SAARC. The end of cold war and the expansion of free trade in Europe has resulted in an economically integrated Europe which is gradually evolving into a powerful political entity. An integrated economy of South Asia with open borders and visa regime as prevailing in Europe would go a long way in addressing much of the problems of South Asian poverty, malnutrition and illiteracy. For this a South Asian Economic Union on the lines of the European Union has been envisaged by the SAARC leaders. It seems to be a pipe dream for South Asians now but Europeans also saw such dream long back. This book discusses the problems, possibilities and prospects of such an UNION for South Asia.