In 2012, the U.S. Department of Defense published Sustaining U.S. Global Leadership: Priorities for 21st Century Defense. In this strategy document, the Defense Department outlines the new focus of U.S. efforts on threats emanating primarily from South Asia and the Middle East, spelling out the U.S. commitment to address them by working with allies and partners, acknowledging Europe as the "home to some of America's most stalwart allies and partners." It clearly states that the United States "has enduring interests in supporting peace and prosperity in Europe as well as bolstering the strength and vitality of NATO North Atlantic Treaty Organization], which is critical to the security of Europe and beyond." In addition, the United States will be hosting the next NATO summit in Chicago on May 20-21, 2012. This will be an opportunity to send a strong message of Alliance solidarity in the face of budgetary restraints and will provide a concrete commitment to "smart defense" through pooling and sharing limited resources. The NATO summit might also provide an opportunity to consider what this means for NATO-Russia cooperation in an age of austerity. Immediately following Russian elections, there may be a case for reviewing the state of play between NATO and Russia, should the new Russian president seize the opportunity to refine his approach toward security cooperation with the West. This paper, completed in February 2012, provides concrete ideas for the United States, Russia, and Europe to take account of the 2012 agenda, and refine their relationships toward the goal of partnership and the ultimate emergence of an inclusive European security community. The paper first provides an honest assessment of the NATO-Russia cooperation of the past 20 years and concludes that this relationship has yet to deliver a truly "strategic partnership" in line with the current rhetoric, many documents, and political declarations. It attempts to shed light on the Russian outlook and reviews the limits of the current partnership. It points to a significant level of "unfinished business" from the post-Cold War, which will have to be addressed if there is any hope of building a whole Europe that is free, undivided, and at peace. The second part reviews the current challenges facing NATO Allies and Russia in three main areas: the reduction of nonstrategic nuclear weapons in Europe, stalemate regarding conventional forces in Europe, and limits of cooperation in missile defense. In reviewing the debate in these three areas, the paper offers options to move forward in each case but, in all three areas, concludes with the need for a broad political-military dialogue, reaching beyond the confines of the NATO-Russia relationship to broadly address Russian concerns. In each area, the paper points to fundamental disagreements that reach well beyond the issue at hand to a basic difference of views on the European security construct and on threat perceptions that ultimately reflect a fundamental lack of trust, paralyzing the strategic community. The third and last part of the paper spells out a confidence-building program to reassure Russia regarding Western intentions and to develop trust through operational cooperation, transparency in contingency planning and exercising, dialogue about deterrence and transparency on safety measures regarding tactical nuclear weapons, smart defense approaches and projects, and possible joint installations and co-ownership as cooperation develops. In conclusion, the paper argues for renewed bilateral and multilateral efforts toward a strategic partnership with Russia. It stresses, however, the requirement for a "confidence-building detour" on the road to an inclusive European security community.