Executive summary: This report on racism and xenophobia in the EU is the first to be published since the creation of the European Union Agency for Fundamental Rights (FRA) on 1 March 2007, following the extension of the mandate of the European Monitoring Centre on Racism and Xenophobia (EUMC). This report, although published by the FRA, is not the FRA Annual Report. It is a report which was produced on the basis of the EUMC legal base and mandate. It covers information and developments on racism and xenophobia in the EU for the year 2006, in the thematic areas of legal issues, employment, housing, education, and racist violence and crime. In addition, there is a final chapter covering developments and policies at the EU level in combating racism and xenophobia.