EU border regions encounter legal and administrative obstacles in their cooperation. Citizens and businesses face unequal access to public services and fewer economic opportunities. COVID has highlighted the urgent need to address the remaining cross-border obstacles and define a long-term vision for unleashing the potential of border regions to become the drivers of European cooperation. The study identifies three policy options: status quo, soft-law measures, and adopting a new instrument (ECBM 2.0). Policy option 3 has the highest potential impact, addressing both legal and administrative obstacles, bringing benefits of €123 billion per year, as well as positive social impacts.