This paper summarises contributions made by the ELOISE cluster of research projects to our understanding of European coastal habitat dynamics. 'Habitat' is used as the key concept defining Europe's coastal ecosystems following the European Community, which uses 'habitat' as formal currency in its directives on water and nature use, management and conservation. Eight aggregate habitat categories are identified: cliffs, shingle beaches, and associated kelp beds; dune complexes with freshwater wetlands; salt marsh; sandbanks and mudflats; seagrass beds, lagoons; subtidal sediments, and open sea pelagic. We distinguish between dynamics 'within' and 'between' habitats. The former tend to be coupled to physical forcing. The latter concern transitions from one habitat to another. Both types have been charted for the eight habitat categories.The Drivers -Pressures -State -Impact -Response framework is used to review the possible impact on habitat of foreseen future changes in key drivers and pressures, which would lead to major changes in the state of European coastal ecosystems. Drivers comprise climate change, the increase in built-up area, expansion and intensification of trade, ports and related industry, as well as of fishing, aquaculture and agriculture. Together these would lead to sea level rise and coastal erosion, contamination, eutrophication, and loss of biodiversity, but to different extents in Europe's regional seas. This report concludes with specific recommendations for future European coastal research.