This chapter examines the political and cultural challenges posed by the growth of the non-white population in Europe. It reviews the chief current policy responses – assimilation, integration, and multiculturalism – in the context of claims by politicians in Germany, France, and the UK that ‘multiculturalism is dead’. The chapter distinguishes between two multicultural approaches: a valuing of diversity that accords full recognition to differences between cultural groups within a liberal democratic framework; and a multiculturalism that values cultural interaction and social mixing but withholds institutional recognition from groups, especially religious ones. The first approach may unintentionally strengthen barriers between groups and foster segregation, whilst the second may marginalise certain cultural orientations and communities. The chapter concludes by analysing the emerging ethnic fault lines across Europe and stresses the significance of a shift from colour to religion as the foundation of group identity, with major implications for the relationship between religion and politics.