This paper focuses on two aspects of insecurity for the European Union: domestic terrorism and international crime. In the former case, such as with radicalized Islam in the West, identity is crucial to the putative terrorist, solving the group's collective action problem. This paper models the strategic interaction between the government and a potential terrorist group. Space needs to be created so that Muslim migrants are able to merge their personal identities within their adopted European homelands and the socio-economic disadvantage faced by Muslims in Europe needs redressing. In addition, a macro-model is sketched of drugs production in a conflict-ridden developing country, where it is argued that demand-side policies of regulation may be superior to policies aimed at eradicating supply. Aid to fragile drug producing states should be broad-based and poverty reducing, not just benefiting warlords.